FAQ Friday: Naming Beneficiaries

On Friday, April 8th, at 11am EST, Mr. Berger describes naming beneficiaries of your IRA under the Secure Act.

This Act came into place in 2020. Children are restricted to 10 years to draw on your account. If someone is taking their normal distributions and passes away, her daughter would need to continue on the same distribution schedule as her parent.

Waiting until the 10th year can cause higher taxes. You could instead move the IRA into a trust. A charitable trust also can be an option that increases the opportunity to support beneficiaries in addition to charities.

Please don’t designate the estate as a beneficiary as that is considered non designated. If you have a minor child, a trust is needed.

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