A few impacts emerge from the Secure Act or the Setting Every Community Up for Retirement Enhancement; one of the biggest challenges associated with carrying on your estate plan following the implementation of the secure act is that this law eliminated a very popularly used estate tax strategy that previously applied to IRAs.
If a person who is not of age to take required minimum distributions from the IRA, inherit such an account, they could stretch withdrawals from their account over their lifetime, which was a popular strategy.
However, the elimination of this technique could force tax-deferred assets to be withdrawn sooner than anticipated, which could have big impacts on estate planning for those who had a lot of assets inside their retirement plan. This is just one reason why it is important to consider secure retirement and estate planning guided by the support of a knowledgeable attorney.
An attorney can have a big impact on the outcome of your estate planning, and it can also help to clarify what you need to know.
Now is the perfect time to review your beneficiary designation forms from any retirement accounts; you might need to update both your strategy as well as your decisions about who should receive those assets when something happens to you.
Need help with your NJ estate planning? Our office is here to help you create a customized plan with your needs in mind.