If you own an IRA or are a participant in a qualified retirement
plan, such as a 401(k), and if your retirement benefits are a
factor in your estate planning then the SECURE Act can have a
significant impact on how your beneficiaries receive those
benefits. Every dollar paid out of the IRA or retirement plan to
your beneficiary is subject to income tax just as you are subject
to income tax when you receive a distribution during your lifetime.
The SECURE Act, which applies to IRA and most retirement plan
distributions to beneficiaries of decedents dying after December
31, 2019, affects the timing of the income taxation of those
distributions.
For those individuals who are leaving retirement benefits
entirely to charity, you are not affected by the SECURE Act and
need read no further; there is nothing you need to do.
