The Secure Act was enacted on December 20, 2019. This new law made several changes to rules regarding retirement assets, such as pension plans and individual retirement accounts (IRAs). The Act's primary change is to eliminate the ability to have a retirement asset paid over the lifetime of a designated beneficiary (unless the designated beneficiary is an "eligible designated beneficiary"). The Secure Act now requires a payout to designated beneficiaries within ten (10) years of the participant's death.The life expectancy payout is still available for a narrow class of designated beneficiaries, referred to as "eligible designated beneficiaries".
Prior to the passage of the Secure Act, retirement assets left to a properly structured see-through trust could be paid out over the life expectancy of the oldest trust beneficiary. Now, retirement assets will generally have to be paid out over ten (10) years following the participant's death except in circumstances where the trust is for the benefit of an eligible designated beneficiary.
To learn more contact an Estate Planning Attorney in your area. Our firm is providing service to clients in Washington State and New Mexico.