SECURE act

[kathyc2]

One reason for doing this is to prevent a young and immature beneficiary from squandering a windfall inherited IRA distribution. So now even if a child, say age 10, is a beneficiary of trust which in turn is the beneficiary of the decedent's IRA, they will get the entire amount no later than age 20? Or will it mean the IRA distribution can remain in the trust until the beneficiary gets older (per terms of the trust), but at the cost of the trust paying all the tax at trust rates?

"Distributions over the life or life expectancy of a non-spouse beneficiary are allowed if the beneficiary is a minor, disabled, chronically ill or not more than 10 years younger than the deceased IRA owner. For minors, the exception only applies until the child reaches the age of majority. At that point, the 10-year rule kicks in."

https://www.kiplinger.com/slideshow/retirement/T047-S001-how-the-secure-act-will-impact-retirement-savings/index.html

[kathyc2]

Thanks for pointing the date. Now I have to go through my notes from last tax season to see which clients could have claimed the credit. I am assuming IRS will require a 1040X unless it is a one page form that we can submit to claim the credit. What a pain!

I'm not seeing it in any of the articles, so maybe I read it wrong? Or, it didn't make the final bill?

[ATSMAN]

SEC. 123. NONBUSINESS ENERGY PROPERTY. (a) IN GENERAL.—Section 25C(g)(2) is amended by striking ‘‘December 31, 2017’’ and inserting ‘‘December 31, 2020’’.

https://amendments-rules.house.gov/a...0022572257.pdf

Thanks for pointing the date. Now I have to go through my notes from last tax season to see which clients could have claimed the credit. I am assuming IRS will require a 1040X unless it is a one page form that we can submit to claim the credit. What a pain!

[Rapid Robert]

Some people with large IRA's have set up IRA trusts in their estate plan that will now apparently be negated under the new 10 year distribution rule.

One reason for doing this is to prevent a young and immature beneficiary from squandering a windfall inherited IRA distribution. So now even if a child, say age 10, is a beneficiary of trust which in turn is the beneficiary of the decedent's IRA, they will get the entire amount no later than age 20? Or will it mean the IRA distribution can remain in the trust until the beneficiary gets older (per terms of the trust), but at the cost of the trust paying all the tax at trust rates?

[RWG1950]

This SECURE act is going to have big effect on many people. The elimination of the stretch IRA for non-spouse beneficiaries struck me as being among the most significant. Some people with large IRA's have set up IRA trusts in their estate plan that will now apparently be negated under the new 10 year distribution rule. Uncle Sam needs the tax bucks though & a 10 year deferral for benes may not be all that bad.

[kathyc2]

Are you talking about Residential Energy Credit?? I did not see that in that bill. Did I miss that completely? That would be good if it is in there.

SEC. 123. NONBUSINESS ENERGY PROPERTY. (a) IN GENERAL.—Section 25C(g)(2) is amended by striking ‘‘December 31, 2017’’ and inserting ‘‘December 31, 2020’’.

https://amendments-rules.house.gov/a...0022572257.pdf

[ATSMAN]

Ugg. With all this crap the last couple years I'm soooo looking forward to retirement. At least it looks like I'll get a little break for the furnace and AC I had installed.

Are you talking about Residential Energy Credit?? I did not see that in that bill. Did I miss that completely? That would be good if it is in there.

[kathyc2]

Ugg. With all this crap the last couple years I'm soooo looking forward to retirement. At least it looks like I'll get a little break for the furnace and AC I had installed.

[AZUKHiker]

Plus don't forget all the other extenders that have passed in the Appropriations Bill. 2018 amended returns here we come. :-)

[kathyc2]

Requirement for non-spouse heirs to deplete Roth account over 10 years rather than lifetime tables, certainly screws up long term plans. Idiots!

[kathyc2]

There was some discussion of this here a couple months ago. According to Barrons, it looks like it will pass. More "simplification".

https://www.barrons.com/articles/the...of2&yptr=yahoo