The SECURE Act (Setting Every Community Up for Retirement Enhancement) made significant changes to how retirement accounts—especially IRAs—are treated in estate plans. If you’re planning to leave a tax-deferred account to your children or other heirs, this law may affect how much they actually receive.
At Golden Legacy Law Group, we help individuals and families across Brentwood, Oakley, Knightsen, Discovery Bay, Byron, Isleton, Rio Vista, Tracy, Mountain House, Lodi, Antioch, and Pittsburg review their existing estate plans in light of the SECURE Act and adjust strategies to minimize unnecessary tax burdens. If your retirement accounts are a major part of your legacy, we’ll help you protect what you’ve worked hard to build.
What Changed Under the SECURE Act?
While the SECURE Act includes several provisions, three key changes may directly affect your estate plan:
- The Required Minimum Distribution (RMD) age increased from 70½ to 72
You now have more time to let your retirement savings grow before you’re required to take taxable distributions. This gives you extra flexibility if you don’t need that income right away. - You can continue contributing to a traditional IRA after age 70½
If you’re still working, you can keep contributing to a traditional IRA regardless of your age. This is a positive shift for those who plan to continue earning and saving beyond traditional retirement years. - The “Stretch IRA” strategy is now largely gone for non-spouse beneficiaries
Previously, adult children and other non-spouse heirs could stretch distributions from inherited IRAs over their own lifetimes—reducing the annual tax hit. Now, most non-spouse beneficiaries must withdraw the entire account within 10 years of inheriting it. This change may result in significant tax consequences, especially for heirs in their peak earning years.
What Does This Mean for Your Heirs?
Receiving a large inherited IRA during high-income years could bump your adult children into a higher tax bracket, reducing how much they ultimately keep. That means less of your wealth stays in the family—and more goes to taxes.
We’ll help you evaluate options such as:
- Creating IRA-specific trusts to control distributions
- Using Roth conversions to minimize future tax exposure
- Adjusting your estate plan to balance assets more effectively
- Exploring charitable giving strategies that align with your legacy goals
Planning ahead can ease the tax burden on your heirs and help your wealth last longer—on your terms.
Should You Update Your Estate Plan?
If your estate includes retirement accounts, it’s worth reviewing how they’re handled under your current plan. Wills and trusts that were written before the SECURE Act may no longer achieve your goals.
We’ll help you:
- Review your IRA beneficiary designations
- Identify which beneficiaries are most affected by the law
- Update trust language and distribution provisions
- Coordinate with your financial advisor or tax professional
It’s not just about protecting your savings—it’s about protecting the people you love from unexpected tax consequences.
Let’s Review Your Retirement Plan Together
Understanding the SECURE Act doesn’t have to be overwhelming. At Golden Legacy Law Group, we’ll walk you through how these changes affect your specific situation and help you create a plan that keeps more of your legacy intact.
We proudly serve families in Brentwood, Oakley, Knightsen, Discovery Bay, Byron, Isleton, Rio Vista, Tracy, Mountain House, Lodi, Antioch, and Pittsburg.
Call us at (925) 516-4888 or use our contact page to schedule a consultation or to ask about upcoming events where we’ll be covering SECURE Act planning in more detail.