I have a trust for myself. Most of my assets are already in the trust. I understand the changes in the Secure Act requires non-spouse IRA and retirement plan beneficiaries to drain inherited accounts within 10 years after my death. I am assuming this also includes my Roth. What are the pros and cons of adding my retirement accounts to the Trust? What other options do I have? What professionals should I seek?
Putting your IRAs into a Trust will not effect the requirements of the SECURE Act.
Those accounts already have most of the same protections and advantages of a Trust, plus some: they bypass Probate and cannot be attached by creditors (usually) and you get tax advantages. They don't even get taxed with estate taxes. The SECURE Act allows the new owner to spread the income tax burden across ten years -- that is pretty generous and they can avoid higher tax brackets.
I don't know of any way to avoid the income tax being paid on the retirement accounts. The bets you can do is manage it by swithcing to Roth when it is conveneient for you.
No. Retirement assets will go to the person or company (charity) you name as the beneficiary. Be sure to name at least one back up beneficiary (technically called a contingent beneficiary) just in case something happens to the primary beneficiary. I've seen situations where people name their mothers or former spouses, then forget to update the beneficiaries down the road. I strongly suggest you check your beneficiaries every 3 - 5 years just to be sure they are still the people you want named. Just check the website or call the (800) number of the company holding these assets for you and ask to verify the beneficiaries. It only takes five minutes, but can save your loved ones a lot of hassle, time and money. Best wishes to you!
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