Retirement plans are often a substantial asset at death. The post-mortem tax benefits of these accounts are significant. However, the pitfalls are of equal or greater concern. It’s shockingly easy to disqualify an inherited IRA and cause a lifetime of savings to be recognized as taxable income in a single year. Moreover, weaving together federal and state law in this area greatly complicates planning for surviving spouses, naming a trust as beneficiary, or meeting charitable goals. Even computing the correct post-mortem required minimum distributions (RMDs) can be a challenge.

Specifically, the course will cover the following:

• Post-Mortem Payout Rules, including the latest on 10-year Rule
• Spousal Rules under ERISA and REA
• Changes in SECURE 2.0
• IRAs to Trusts
• Post-Mortem Fiduciary Income Tax Issues
• State Law Fiduciary Accounting Rules
• Overview of the Charitable Provisions of 642(c)
• IRAs Directly to Charity
• Decantings and Reformations
• Problems with Conduit Trusts

Learning Objective: Be prepared to identify issues and undertake basic planning and administration work for inherited retirement plan assets.