The Secure Act will mean sweeping changes for many investors. In this video, Brandon will explain how this may mean more taxes and less flexibility for your beneficiaries and what can be done about it.

#secureact #inheritedira #financialstrategiesgroup…(read more)

LEARN MORE ABOUT: IRA Accounts

TRANSFER IRA TO GOLD: Gold IRA Account

TRANSFER IRA TO SILVER: Silver IRA Account

REVEALED: Best Gold Backed IRA

The recently passed Secure Act has brought about several changes in the retirement plan landscape. One particularly significant change has been made to the way inherited IRAs or individual retirement accounts are treated. Here, we will take a closer look at this aspect of the Secure Act.

Prior to the Secure Act coming into effect, beneficiaries of inherited IRAs had the option to distribute the account balance over their lifetime. This meant that they could take out a certain percentage each year, and the remaining balance would continue to grow tax-free. This option allowed beneficiaries to stretch out the tax benefits of the inherited IRA and maximize its value.

However, this option has been eliminated with the passage of the Secure Act. Now, most non-spousal beneficiaries must distribute the entire inherited IRA balance within 10 years of the account owner’s death. This includes traditional, Roth, and rollover IRAs.

While this change could result in higher taxes for some beneficiaries, there are some beneficiaries who will not be affected. Spouses who inherit an IRA can still treat the account as their own and not take any distributions until they reach the age of 72. Additionally, certain categories of beneficiaries are exempt from the 10-year rule. These include disabled individuals, the chronically ill, and beneficiaries who are within 10 years of the decedent’s own age.

It should be noted that the new rules only apply to IRAs inherited after January 1, 2020. Any IRAs inherited before that date will still fall under the old rules and the lifetime distribution option will still be available.

The Secure Act has brought about significant changes to the way inherited IRAs are taxed and distributed. Beneficiaries should be aware of these changes and consider their options carefully. It may be worthwhile to consult with a financial advisor or accountant to determine the best course of action for their specific situation.