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How to Pass On an IRA or Retirement: Traps & Common Errors

The laws around inheriting IRAs are complex and fraught with danger—while the opportunities are huge. In this legal webinar, California Estate Planning Attorneys Jim Cunningham and Conner Clemons explain how the SECURE Act can affect your retirement.

The SECURE Act just made it a lot easier to mess up passing on your IRAs or retirement fund to loved ones. If you don’t know what you’re doing, you can easily lose a huge chunk of your retirement funds—one of your biggest assets. If you do know what you’re doing, you can COME OUT AHEAD OF THE GAME.

This legal webinar will cover:

  • The SECURE Act: In a nutshell, The SECURE Act, which passed in December of 2020, changed some of the most popular retirement plans in the U.S. (401Ks, IRAs, etc.). The goal of the SECURE Act was twofold: increase equity in retirement savings for Americans and raise revenue. One of the biggest changes the SECURE Act made was to change the Required Minimum Distribution (RMD) minimum age from 70½ to 72 on IRAs–this is money on which you have to pay taxes so it’s important to know how it works!
  • How Beneficiaries Inherit IRAs.: We’ll talk about “Designated Beneficiaries,” “Eligible Beneficiaries,” and how they can draw funds from the IRA.
  • IRA Trusts: IRA Trusts provide plans for beneficiaries to draw money out over 11 years, providing asset protection and allowing the Grantor to control their money. This also helps protect the Grantor’s money from divorce.
  • Trust Protectors: We’ll discuss the role of Trust Protectors and how an IRA fund can be funneled through or into a new trust. We’ll also discuss how to protect your IRA in terms of who might be able to inherit it (and how to keep it from the wrong people).
  • Tax Bracket Issues: We’ll discuss tax bracket arbitrage and how to make your money grow over time. We’ll also discuss how to reduce state tax on your IRA.
  • Roth IRAs: We’ll discuss the much-discussed pros and cons of a Roth IRA and what it means, taxwise.
  • Why it’s Important to Have Your IRA Reviewed: An IRA is a large asset, and you should talk to an estate planning attorney about having it put in an IRA trust!

As you can see, there’s a lot to talk about when it comes to IRAs, especially now that the SECURE Act is in effect. Watch our legal webinar about inheriting IRAs and then call us to speak with a California Estate Planning attorney to discuss what this might mean to you!

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