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Thread: Secure Act and new rules on Inheritance

  1. #1

    Default Secure Act and new rules on Inheritance

    For inheritance that will go to non spousal adults, new rules gives the recipient 10 years to withdraw all the money. This will mean more planning is needed to reduce the amount of the inheritance lost in taxes. After a the ten year period is over, the remaining money will need to to be taken out of the retirement account no matter the tax consequence.

    Inheriting a parentís IRA or 401(k)? Hereís how the Secure Act could create a disaster
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  3. #2

    Default Re: Secure Act and new rules on Inheritance

    Cactus shared this article on his account thread: Potential Drawbacks to the TSP

    There are unique and even less promising beneficiary rules with a TSP compared to what the new secure act gives. Seems a bit of a plan of action is required to protect that accumulated money from taxes when it is passed on.

    Under TSP rules, a surviving spouse is the only participant that may continue with a TSP beneficiary account. However, upon passing of the second spouse, their account must be distributed in full to the named beneficiary of the spouseís account. That means there is no option for the surviving spouseís beneficiary to continue with a TSP account or to move the funds into an IRA account. The impact of this is potentially a massive tax bill.
    TommyIV's ETF Trading Returns |
    Chart Patterns |
    An ETF Trading Primer |

    Disclaimer: This is not advice or a recommendation.

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