In this episode of Protecting and Preserving Wealth, we dive into the changes introduced by the SECURE Act 2.0, which has made significant modifications to IRA and trust regulations. Bruce Hosler and Alex Koury from Hosler Wealth Management explain the complexities and implications of these new regulations.

The conversation begins with Bruce explaining the updated requirements for trusts designated as IRA beneficiaries. Previously, the law mandated that documentation, including copies of the trust, be provided to IRA custodians by a set deadline after the IRA owner's death. Under SECURE Act 2.0, however, this requirement has been relaxed. Now, instead of submitting full documentation, the trustee only needs to provide a list of beneficiaries and the conditions of their entitlement. For trusts listed as IRA beneficiaries, documentation requirements have been removed entirely, simplifying the process significantly for trustees.

Alex follows by highlighting the second key update, which allows for separate accounts in trusts under certain conditions. Previously, IRA owners could not allocate separate accounts for multiple beneficiaries within a single trust. This limitation meant that multiple beneficiaries inheriting through a trust would share a single account. With the new rules, separate accounting is now permissible for see-through trusts under specific conditions, including those for beneficiaries with special needs. This change allows beneficiaries within a trust to inherit assets based on their own life expectancies, potentially stretching the distributions over a longer period.

Bruce then describes a third important change concerning Required Minimum Distributions (RMDs) for inherited IRAs within trusts. Previously, all beneficiaries of a trust would have to follow the distribution schedule based on the oldest beneficiary’s age, limiting flexibility. Now, the new regulations permit RMDs to be calculated separately for each individual beneficiary based on their own life expectancy, offering potential tax advantages and allowing younger beneficiaries more flexibility in managing distributions.

Throughout the episode, Bruce and Alex underscore the importance of consulting professionals to navigate these complex changes. While these new rules provide increased flexibility and potential tax benefits, they also demand a precise understanding of IRA and trust structures, especially for those with multiple beneficiaries. For anyone affected by these changes, they stress the value of working closely with wealth management professionals who understand both the regulatory landscape and individual client needs.

For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/

Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.

For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/

Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia

Copyright © 2022-2025 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler