Customized & Effective Planning

Secure Act

On Behalf of | Apr 14, 2022 | Firm News |

Effective 2020
For retirement accounts (traditional IRAs, ROTHIRAs and 401k’s), the Secure Act requires that most beneficiaries pay income tax on inherited funds within 10 years of the date of death of the original owner. Some exceptions apply for EDBs (Eligible Designated Beneficiaries), which include the following:

  • surviving spouse,
  • disabled beneficiary,
  • minor child of IRA owner, or
  • a beneficiary less than 10 years younger than the decedent.