Planning for Ownership and Inheritance of Pension and IRA Accounts and Benefits in Trust or Otherwise after the SECURE Act
Overview
More than ever, recent changes in tax law make it difficult to understand and work with the rollover, aggregation/non-aggregation, creditor protection, borrowing, and required minimum distribution (RMD) rules as they apply to plan participants and their beneficiaries.
Add to that the complexity of grasping the different methods of calculating RMDs, and when each of them applies.
Now try to get your mind around what post-death decisions can be made, and what flexibilities can be programmed into an estate and trust plan so that the best possible decisions can be made during the nine months after the death of the IRA/plan participant.
If the above were not confusing, add an understanding of how to determine the best way to integrate Roth and traditional IRA and plan distribution planning with QTIP marital deduction trusts, generation skipping trusts, and non-generation skipping trusts.
In their landmark book, Alan Gassman, Christopher Denicolo, Brandon Ketron and John Beck cover all these things in their comprehensive yet concise four-color book, which may be the best explained, and straight to the point, source of “everything you need to know” on this subject, from seasoned professionals who have been working in and writing about this area for many years. You’ll love the dozens of decision-making flow-charts, graphs, legal forms, comparison tables, and frank opinions. The authors have held nothing back in their sharing of ideas and techniques!
Table of Contents
- Chapter 1 – Introduction
- The CARES Act
- IRA basics
- Limits on deductibility of traditional IRA contribution based on the plan participant’s filing status
- Roth IRA
- Converting a traditional IRA into a Roth IRA
- Eligible rollovers
- Don’t forget creditor protection
- 2019 pronouncement on Canadian Registered Retirement Savings Plans (RRSPs) and Registered Retirement Income Funds (RRIFs)
- Grandfather rules for pre-1984 IRAs and pre-1987 403(b) plans
- Prohibited transactions and LLCs owned under IRA
- Access before age 59½:
- Access between age 59½ and the required beginning date
- The coffee and cream situation – partly taxable distributions
- After the required beginning date
- After death of plan participant
- Surviving spouse exception
- Beneficiaries other than the spouse
- Planning pointer
- Pension planning considerations
- Chapter 2 – Players and Definitions
- Chapter 3 – Pre-SECURE Act IRA and Plan Benefits Payable to Trusts
- Chapter 4 – Payout Methods that Apply if the Plan Participant Died Prior to January 1, 2020
- Chapter 5 — Charitable Planning with IRA/Plans – Spectacular Opportunities Provided by the SECURE Act
- Chapter 6 – Creditor Protection Planning
- Introduction
- What about super and exception creditors?
- Accumulation trusts
- Accumulation trusts for disabled and chronically ill beneficiaries
- Conduit trusts
- Marital agreements to protect roll over or inherited IRA’s
- Inherited IRA or annuitization to avoid the 10% excise tax for withdrawals before age 59½
- Chapter 7 – The SECURE Act
- The more things change the more they stay the same
- Now that we understand the rules, what do we do?
- Trust drafting considerations
- Use of the TEAPOT trust system
- A refresher on distributable net income and IRA/plan benefits payable to trusts
- Possible use of Section 678 trusts
- A SECURE Act Checklist
- Facts
- QLAC math – Donald Duck in mathematics land?
- Death benefits of a QLAC
- Other QLAC requirements
- Section 403(b) plans and Section 457(b) plans
- IRAs
- IRA QLACs better for men, non-IRA QLACs better for women
- Defined benefit plans
- Initial disclosure and annual reporting requirements
- Effective/applicability dates
- Conclusion
- Author biographies
- References
Registration Fee: $179
Author: Alan Gassman, Christopher Denicolo, Brandon Ketron and John Beck
