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Estate Planning for IRAs and Qualified Plans: Trusts as Beneficiaries, Impact of SECURE 2.0, CRTs

Recording of a 110-minute CPE webinar with Q&A

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Conducted on Wednesday, May 17, 2023

Recorded event now available

or call 1-800-926-7926

This webinar will address specific estate planning issues with IRAs and qualified plans. Our panel of estate, trust, and retirement planning professionals will cover utilizing trusts as IRA beneficiaries, naming beneficiaries, charitable remainder trusts, Roth conversions, and specific estate tax planning strategies after SECURE 2.0.

Description

IRAs have always been an excellent vehicle for taxpayers to save for future retirement and sometimes save taxes in a current year. Many taxpayers have accumulated substantial balances in these accounts. Estate planning to minimize taxes paid on these distributions is essential.

Recent changes have curtailed taxpayers' ability to report inherited IRAs over their life expectancy and often require the account be liquidated and taxes paid within 10 years of the decedent's death. SECURE 2.0 opens new opportunities for a “back-door” stretch-out or pseudo stretch-out. Back door opportunities relate to use of CRT for QCDs and as a designated beneficiary of a qualified account, and also for use of Life Insurance with an ILIT structured to replicate something like the old stretch out rules.

Using a trust as a beneficiary of an IRA can still be a viable planning opportunity. There are, however, caveats to consider. For example, naming a trustee who resides in a high-income tax state may result in paying higher income taxes on distributions than may be required. Existing arrangements need a fresh look considering SECURE 2.0.

IRA conversions and rollovers often save tax dollars and administrative burdens. Roth conversions could help mitigate the effects of SECURE 2.0. Rolling 401(k) monies into an IRA often makes sense, but there are special considerations for employer-owned stocks. Trust and estate advisers working with taxpayers holding IRAs must understand how to properly plan to mitigate taxes on these valuable investments.

Listen as our panel of estate planning experts explains how to properly plan for IRAs and IRA distributions and new considerations after SECURE 2.0.

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Outline

  1. Estate planning and IRAs
  2. SECURE 2.0's impact on estate plans
  3. Naming beneficiaries
  4. Trusts as beneficiaries after SECURE 2.0
  5. Charitable remainder trusts
  6. Roth conversions
  7. State tax considerations
  8. IRA planning strategies

Benefits

The panel will cover these and other critical issues:

  • The impact of SECURE 2.0 on estate planning for qualified plans
  • Caveats and considerations when utilizing trusts as IRA beneficiaries
  • How a Roth conversion might mitigate tax consequences of SECURE 2.0
  • State tax considerations for IRA beneficiary trusts

Faculty

Boyd, F. Keats
F. Keats Boyd, III
Shareholder and President
Boyd & Boyd

Mr. Boyd concentrates his practice in the areas of Estate, Trust & Retirement: Planning, Administration &...  |  Read More

Tashjian, Whitney
Whitney N. Tashjian
Attorney
Boyd & Boyd

Prior to joining Boyd & Boyd, P. C., Ms. Tashjian served as Counsel for the Law Office of Lindsey M. Straus, a...  |  Read More

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