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The Secure Act

Speakers Jonathan Blattmachr, Esq. and Martin M. Shenkman, Esq.

What is the Secure Act and how did it affect designation of beneficiaries for retirement plans and IRAs?
1. Elimination of the lifetime stretch (payout) of IRA benefits for most beneficiaries.
2. Exceptions for Eligible Designated Beneficiaries (“EDBs”).
  1. Surviving spouses.
  2. Disabled /chronically ill beneficiaries.

Minor beneficiaries.

Beneficiaries not more than 10-years.

10-year rule for non-EDBs DBs.
5-year rule for others (non-DBs) or the ghost payout (at least as rapidly rule if RBD has been reached).

What planning might be considered to gain longer stretch for IRAs after the Secure Act.
Using charitable remainder trusts (“CRTs”) as a beneficiary.
Using beneficiary defective irrevocable trusts (“BDTs”) as a beneficiary.
Using Qualified Subchapter S Trusts (“QSSTs”) as a beneficiary.
Conclusion.

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