​When the SECURE Act (2019) altered the retirement rules, investment advisors became burdened with managing the new 10-Year Rule. Under this rule, account custodians must distribute the total amount of the retirement account to the inheritor within ten years. During the 10-year period, clients need to be apprised of the remaining years left within the 10-year period.

​The SECURE Act of 2019 increased the complexity of administering retirement plans for clients. Financial advisors are responsible to track the setup, investment, and distribution of these important client resources.

​The SECURE Act of 2019 established Required Minimum Distribution (RMD) rules for Eligible Designated Beneficiaries (EDBs) who may extend their distribution period for inherited retirement plans. Financial advisors have a significant responsibility to assure that client retirement accounts are properly set up to reflect the EDB exceptions.

​Under the SECURE Act (2019) , beneficiary designations took on added importance because the SECURE Act introduced a 10-Year Rule wherein account custodians must distribute the total amount of the retirement account within ten years.
Non-designated beneficiaries (charities, estates, and non-see-through trusts) may have only five years to distribute the account if the participant died before his or her Required Beginning Date (the 5-Year Rule).

​Under the new SECURE Act of 2019 rules, Required Minimum Distributions (RMDs) for beneficiaries inherited after 2019 depend upon the date of death of the Participant. 
We added a sixth option in Step 1 to accommodate the 10-Year Rule, specifically, the “Successor Beneficiary” option. We now designate the Participant as the “Primary Beneficiary.” All follow-on beneficiaries are “Successor Beneficiaries.”

​The SECURE Act of 2019 dramatically altered the rules for Required Minimum Distributions (RMDs) for designated beneficiaries. The distribution of an RMD to a designated beneficiary or a successor beneficiary now depends upon the date of death of the participant.

Required minimum distributions (RMDs) for spouses took a slightly new turn under the SECURE Act of 2019. The Required Beginning Date (RBD) was changed to April 1 of the year after the participant would have reached age 72. The RBD age for the past 44 years was 70-1/2.
​
If the participant died before his or her RBD...

​Many prospective clients are looking for a quick overview to determine if they are on track towards retirement. A good Client Relationship Management (CRM) system can document the client’s existing accounts and then create a net worth projection in a matter of minutes.