What are the rules for beneficiaries of IRA accounts? They can be complicated and confusing. The SECURE Act, officially enacted on Jan. 1, 2020, is the most significant retirement reform to impact the economy. It affects IRA beneficiaries and the distributions the IRS requires them to satisfy. This week's blog discusses the regulations associated with the SECURE Act. It will affect every retirement account and every beneficiary. It is essential to be aware of these rules to prepare you and your heirs for what is coming.
To read more, please click on the link below titled, Secure Act: Regulations are Here.
Back in July, our blogs focused on beneficiaries and the importance of ensuring ALL beneficiary information is updated. As you can see with the RMDs, it is vital to make your heirs aware of the rules and their next steps. Your beneficiary(s) should know they are named, and you should provide them with your financial advisor's information. Hence, they have a point of contact before and after your passing. Doing so will guarantee a smooth transition for all parties involved. If possible, we want to develop a relationship with your heirs before they need us to gain their trust and confidence.
The death of a loved one is hard enough, and we do not want to add to that burden. We encourage you to share our information with your heirs and encourage them to reach out to our office with any questions or concerns they may have. The trust you have put in DFG over the years is the same trust we want them to have, and we are ready to build that relationship.
September has been a full month with information about RMDs, QCDs, and the rules to follow to stay compliant. You may have many questions, so please do not hesitate to reach out to our team and me for answers or to schedule a time to sit down and discuss these topics.
I have included another link you may find informative, click below to read LPL's flyer, Required Minimum Distributions.
David S Dixon, CFP®