The 2019 SECURE Act changed all of the rules regarding distributions from retirement plans. The negative affect of this law affected beneficiaries of those plans. Trusts are often named as beneficiaries for IRAs and other retirement arrangements. The choice could provide a different result than under prior law. Now is the time to revisit beneficiary choices. This class gives examples of income tax implications of various trusts that are chosen as beneficiaries. Note: This class presents an in-depth discussion of issues presented in the instructor’s class Retirement Distributions: Planning Options.
Learning Objectives
• Recognize reasons trusts are named as beneficiaries
• Identify the types of trusts used and their tax characteristics
• Determine how retirement distributions are reported for various types of beneficiary trusts
Major Topics
• What is the significance of the Retirement Plan Beneficiary?
• Primary vs. Contingent Beneficiaries
• Is a Trust a "Designated Beneficiary?" Is it an "Eligible Designated Beneficiary?"
• Why do people want to name a trust as the beneficiary?
• What happens when the trust beneficiary dies?
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