SECURE Act Legislation heads to the Senate……..and what that could mean for your non-spouse beneficiaries.

I have had a few clients email requesting information on how the SECURE act could impact their future financial plans related to RMD’s and passing the asset to their children.  As traditional pensions are fading away, people are mostly responsible for fully funding their retirement income.  The main vehicle by which this is accomplished is a 401k and an IRA.  The SECURE Act focus is to encourage and “simplify” the qualified saving process for the average person.

One item that is favorable would be extending RMD’s, required minimum distributions from 70 ½ to 72 but the main impact for those who have truly been ardent savers and plan to pass along the tax deferred growth account to non-spouse beneficiaries would be limited if not extinct.  A non-spouse beneficiary would have only 10 years by which to completely withdraw the account and yes, pay the respective income taxes on those withdrawals.

Kiplinger posted a good article that I wanted to share and have included the link:

Should you have any questions about your specific circumstance related to passing along your hard earned asset to a non-spouse beneficiary and what planning choices are available to preserve the asset in a tax efficient manner, contact us at as we are happy to work with you and review your options.