The SECURE Act and your estate plan

The Setting Every Community Up for Retirement Enhancement Act (“SECURE Act”) was signed into law on December 20, 2019.

What it means: The new law means that IRAs inherited by non-spouses must be paid out within 10 years of the planholder’s date of death.

The big picture: “Stretch” IRAs, structured in a way that distributed their contents over the expected lifetime of the beneficiary, can no longer be used.

  • This was a useful strategy for the extended deferral of taxes, as IRAs come with a tax burden for the beneficiary.

What to do: Review your estate plan and ensure that your beneficiary designations are up to date.

  • Consider whether or not your designated beneficiaries would be able to handle the tax impact of a quicker distribution timeline.
Michael Faehner

Michael J. Faehner

Michael J. Faehner is the founder of Faehner PLLC in Oldsmar, Florida. Michael focuses his practice on estate planning, corporate,…

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