The rules have changed regarding your IRAs, RMDs and estate plan

Posted by Kim Chen on August 7th, 2020

The Setting Every Community Up for Retirement Enhancement (SECURE) Act and the Coronavirus Aid, Relief, and Economic Security (CARES) Act have had a direct effect on IRAs and estate plans. The CARES Act waives required minimum distribution rules for IRAs (and certain defined contribution plans) for calendar year 2020. If you’re fortunate enough that you don’t need to make withdraws from your IRA, there’s an opportunity to leave more for your heirs in your retirement plan. However, bear in mind that because the SECURE Act generally put an end to “stretch” IRAs, the estate planning benefits of inheriting IRAs are somewhat muted. Contact us for details.