Ed Slott’s IRA Advisor: Tax & Estate Planning for Your Retirement Savings, To Track SECURE, Consider an IRA Trust – April 2020

Ed Slott has published his IRA Advisor: Tax & Estate Planning for Your Retirement Savings, To Track SECURE, Consider an IRA Trust – April 2020. Provided below is the introduction to the newsletter.

The new Setting Every Community Up for Retirement Enhancement (SECURE) Act introduces a 10-year rule for many beneficiaries of IRAs and employer-sponsored retirement plans. Following this rule will require extensive tracking and failure to comply could generate a penalty equal to 50% of the amount involved.

One way to address this risk is to name a trust as IRA beneficiary, shifting tracking responsibility from the retirement plan beneficiary to the trustee of the IRA trust. Depending on a client’s choice of beneficiary, it may be an astute move to begin discussions of an IRA trust this year.