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You Need to Know About These Important Tax Law Changes

Unless you are the kind of person who keeps a copy of the Internal Revenue Code on your nightstand, you are probably not aware of the important tax law changes that were recently enacted by Congress. The SECURE Act makes significant revisions to the rules governing retirement accounts and Section 529 college savings plans. Excellent summaries of the new provisions can be found here and here.

One aspect of the SECURE Act that requires immediate attention -- the use of a trust as a beneficiary for your retirement account. As IRA guru Ed Slott, CPA cautions: "Since most trusts were established for post-death control, it is essential that existing trusts be reviewed for all trust beneficiaries to receive the most favorable distribution options. Most trusts will have to be revised or completely redone." [Emphasis added] Failure to do so may lead to payouts to beneficiaries sooner than desired. Alternatively, it could cause money to be retained in a trust at a high tax rate.

I'm happy to discuss with you in greater detail the various aspects of the SECURE Act that interest you. In addition, I can work with your estate planning attorney to address your particular situation..

Words of Wisdom

The income tax has made liars out of more Americans than golf. -- Will Rogers