Inherited IRAs: What Beneficiaries Need to Know as IRS Enforcement Begins
For several years, many inherited IRA beneficiaries have lived in a state of uncertainty. Following the passage of the SECURE Act in 2019 and its successor, SECURE 2.0, enacted in December 2022, the rules governing inherited retirement accounts changed significantly. Yet IRS enforcement lagged, and required distributions were effectively delayed for many heirs. That grace period is now ending. Beginning this year, the IRS is enforcing annual required minimum distributions (RMDs) for certain inherited IRAs, and beneficiaries who fail to comply may face substantial penalties. If you inherited an IRA in recent years, or if your estate plan includes retirement ... Read More
How Outdated IRA Beneficiaries Can Derail Your Estate Plan
Most people assume that once they’ve set up their IRA or 401(k), the hard work is done. But one of the most overlooked estate-planning risks doesn’t involve your will or your trust; it’s the beneficiary designation form you filled out, often decades ago. These types of beneficiary errors are far more common than many realize, and the financial fallout can be significant. We see the consequences of these oversights in our practice on a regular basis. Why the IRA Beneficiary Form Matters More Than You Think Your IRA or 401(k) does not follow your will or trust. Instead, it passes ... Read More
