I want to share with you my conclusions on my recent presentation to the MassMutual Group Financial Planner Division on Special Needs on the SECURE Act.
If you have a family member who qualifies as “disabled” or as “chronically ill” and have substantial retirement accounts, you may want to review the beneficiary designation of your retirement accounts.
Two top changes on retirement accounts with the SECURE Act of 2019 are (1) the end of the inherited retirement planning opportunity of the transfer of wealth replaced by a ten year payout requirement, and (2) an exception to the ten-year payout rule for beneficiaries that fall under the new category called Eligible Designated Beneficiaries.
The Act authorizes the creation of a trust that can benefit an individual falling into one of these two categories of eligible designated beneficiaries along with other family members while avoiding the ten-year payout requirement. In certain circumstances you may want to create a stand-alone retirement trust to take full advantage of the new rules which will benefit the special needs individual and other family members. This is a completely new approach developed for adjusting to the SECURE Act new requirements.
There are many aspects to the new law. If you have any questions about the SECURE Act and how it may affect your retirement account, please don't hesitate to contact us. We are here to help.
Yahne
