Episode 81: How The SECURE Act Changed Inherited IRAs

Today’s Prep:

Are you aware of all of the changes that the SECURE Act brought about? How does that potentially change your financial plan right now? We’ll answer those questions and more on today’s episode.

(Click the featured times below to jump forward in the episode)

Equipping Points:

A great deal of the news has been focused on coronavirus lately, but we wanted to step back and talk more about the SECURE Act that passed a few months ago. What do you need to know, particularly when it comes to inherited IRAs?

You used to be able to implement stretch IRAs, but the SECURE Act have dashed some of the strategy and plans around inherited IRAs. So, what are some of the ways you need to pivot? What are some of the ways this could cause you to trip up?

Let’s start by understanding the different categories of beneficiaries. For instance, a surviving spouse will inherit an IRA very differently than a child inheriting. What exceptions are there to the new rules?

What is the time limit in place now due to the SECURE Act? And most importantly, what changes do you need to make now to your IRAs? What other assets may shuffle to make sure the tax implications are most beneficial to your heirs? What if you have a trust?

Listen to the full episode or click on the timestamps below to learn more about the inherited IRA rules.

[0:32] – The SECURE Act was supposed to be the big financial news.

[2:45] – What happens when you inherit an IRA?

[3:40] – The first category of beneficiary is the surviving spouse.

[4:21] – Who is included in the category of eligible designated beneficiary?

[7:16] Who has to take out the money within ten years or less?

[9:47] – What’s the biggest unintended consequence?

[12:38] – When should you talk to your advisor?


More From David:

The host: David Dickens

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