The SECURE Act has created more considerations for investors to think about when designating heirs for their retirement assets.
A new 10-year rule sets a timetable for heirs to distribute assets from inherited individual retirement accounts (IRAs) and other retirement accounts. The distribution of significant assets could subject heirs to “bracket creep,” placing them in a higher tax bracket.
In this video, Bill Cass and Chris Hennessey discuss planning considerations for investors choosing beneficiaries for estate plans.
Topics include the following:
- Consider leaving IRA assets to heirs who may likely be in lower tax brackets
- Pass non-retirement assets to higher-income heirs
- Explore the advantages of a Roth IRA conversion
- Identify other strategies such as a charitable remainder trust (CRT)
For informational purposes only. Not an investment recommendation.
This information is not meant as tax or legal advice. Please consult with the appropriate tax or legal professional regarding your particular circumstances before making any investment decisions. Putnam does not provide tax or legal advice.