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Concurrent Session Onsite and Online

PFP2336. Using Trusts as IRA Beneficiaries in a Post-SECURE Act World

The U.S. retirement market was roughly $33.6 trillion at the end of 2022, and more than half of those assets were held in IRAs and similar defined contribution plans. Much of that wealth rests in the hands of an aging Baby Boomer generation, and financial advisors will play a critical role in passing these assets along to clients’ beneficiaries as intended, and as tax efficiently as possible. Sometimes, that may require using a trust as an IRA beneficiary. But while these tools can be incredibly effective at protecting and preserving wealth, they can also add considerable cost and complexity to a plan, especially in light of changes made by the SECURE Act. In this session, attendees will learn about some of the biggest pros and cons of leaving an IRA to a trust, as well as the critical IRA trust rules they must know in order to properly guide clients.

Learning Objectives:

  • Understand the difference between the treatment of see-through trusts and non-see-through trusts.
  • Discover the different types of see-through trusts and how they impact the calculation and taxation of distributions.
  • Explore the “life cycle” of an IRA Trust.
  • Examine the impact of the SECURE Act on IRA trusts.
  • Identify common mistakes made when trusts are named as a beneficiary.
  • Analyze different alternatives to naming a trust as a beneficiary.
CPE Credits
NASBA Field of Study
4-5+ years in the Profession
Advanced Preparation
Session Tags