Since 2020, The SECURE Act and its progeny have had wide-reaching effect on retirement savings and estate planning for most Americans and all of our clients. Together, the SECURE Act, the Proposed Regulations on February 23, 2022, Notice 2022-53 in October, 2022, the SECURE Act 2.0 in December, 2022, and the Final Regulations to the SECURE Act due later this year, have an evolving impact on the requirements for distributions from IRA accounts and qualified plans during lifetime and distributions after death. We will review each of these legislative changes individually and their collective impact on retirement and estate planning.
This course will discuss:
A. Distributions during Lifetime:
1. New rules for lifetime withdrawals
2. Various new exceptions to the 10% early withdrawal penalty
3. Excise Tax changes
4. Portability of ROTH accounts and qualified plans
5. Qualified Charitable Distributions
B. Distributions at Death:
We will focus on the estate planning implications of the elimination of the “Stretch IRA” for most beneficiaries
1. The new “10-Year Rule” and Designated Beneficiaries
2. Exceptions to the “10 Year Rule” - Eligible Designated Beneficiaries
3. Non-Designated Beneficiaries and the old “Five Year Rule”
4. The use of Trusts in planning with IRA and qualified plans including sample forms and beneficiary designations – Why Trusts may still provide a benefit
5. “See Through Trusts” - Accumulation Trusts, Conduit Trusts, and Applicable Multi-Beneficiary Trusts - the impact on Special Needs and Supplemental Needs Trust
C. Planning with 529 Plans: The asset that “gets out of control.” So many of our clients are grandparents and parents who have accumulated 529 plans that may not be needed for higher education expenses
1. How the SECURE 2.0 rules may ease the tax bite on excess 529 accumulation -- Rolling over some 529 assets into a Roth IRA
2. Estate Planning and the 529 owner – contingent owners, the impact of owning a non-PA sponsored plan, and “529 ownership and FASFA”
All attendees will receive the course materials as a digital book.
Recorded in April 2023.