Effective January 1, 2020, the rules regarding distributions from inherited retirement accounts have changed significantly. 

Under prior law, a so-called “designated beneficiary” of a retirement account could receive distributions over his or her lifetime, sometimes called “stretch IRAs.”  A “designated beneficiary” was any individual and included trusts that met certain conditions.

The new law changes the distribution rules for most designated beneficiaries other than a spouse.  Under the new law, the payment period from an inherited retirement account to most designated beneficiaries may not exceed a period of 10 years commencing on the date of death of the account owner. 

In the event you designated a trust as primary or alternate beneficiary of any of your retirement accounts we recommend that you schedule an appointment to discuss the implications of the new laws and determine whether a change to your beneficiary designation or to your trust should be made.

Related Practice Areas

Trusts & Estates