EP 27: Breaking News: The SECURE Act and Special Needs Trusts

The SECURE Act went into effect on January 1, 2020 and Mark Worthington of Special Needs Law Group joins Annette to discuss this important development and to shed some light for special needs parents about what they need to pay attention to when it comes to retirement and leaving assets to their loved ones with special need.

 

One of the big changes in the SECURE Act is that it increases the retirement age from 70 ½ to 72 years old for traditional IRA required distributions. But the Act also ends what some call Stretch IRAs. Now, all distributions must be taken no later than 10 years after the plan owner’s death.

 

Most importantly there are significant changes that anyone with a special needs trust must be aware of and that’s what Mark and Annette discuss today. One of those changes allows for certain special needs trusts to use what was called the Stretch… the life expectancy of the deceased. However, as Mark points out in this podcast, there are still restrictions and he goes over those limitations.

 

Mark and Annette discuss what needs to happen next if you do have a special needs trust in place to make sure the language is updated. It is important for anyone to contact their attorney to make sure that the language reflects what is now in the SECURE Act.

 

You can also find out more in this recent blog post by Mark and Annette at the Special Needs Law Group of Massachusetts, PC.

 

https://specialneeds-law.com/the-secure-act-and-special-needs-trusts/