SECURE Act Forces Updates to Stretch IRA Trusts
In a previous post, we explored the SECURE Act and how it affects inherited retirement accounts. Before the SECURE Act, retirement beneficiaries could spread out taxable distributions from the account over their lifetime. In fact, the government, at a minimum, required these distributions to the beneficiaries annually. However, beneficiaries sometimes elected distribution amounts greater than that required and paid tax on the additional distribution. This created scenarios where less prudent, less responsible beneficiaries withdrew inherited retirement all at once. They would then proceed to squander the proceeds leaving less security for their own retirement. If retirement account holders wanted assurances [...]