Beneficiary Options for Inherited IRA and 401(k) Accounts

Overview

This course is intended for practitioners and advisors who provide advice to both owners and beneficiaries of IRA and 401(k) accounts. Recent law changes in the SECURE Act 2.0, the SECURE Act, the CARES Act, and the issuance of proposed regulations in February 2022 (87 FR 10504), have created much confusion about required distributions and the various exceptions and special rules contained in them. This course provides an overview of the distribution options available for beneficiaries concentrating on provisions that allow for more spread out and tax advantageous distributions from inherited accounts. It also provides guidance for the accommodation of special beneficiaries such as surviving spouses, the disabled, minor children, and the use of trusts.

Prerequisites

None

Designed For

CPAs, EAs, financial professionals and professional staff.

Objectives

• Specify in general the types of retirement accounts.
• Define the differences between qualified and nonqualified retirement plans.
• Recognize the terms IRA, 401(k), and Roth IRA.
• Determine the similarities and differences among IRA, 401(k), and Roth IRA accounts.
• Recognize the term RMD and its ramifications relative to IRA and 401(k) accounts.
• Determine the correct RMD amount for an IRA or 401(k) account holder.
• Indicate the issues that arise upon the death of the 401(k)/IRA account holder.
• Advise the beneficiary(ies) of the options available for an inherited retirement account interest.
• Determine the special provisions that apply to interests passing to the decedent's spouse.
• Recognize the special rules applicable to Roth accounts.
• Advise the beneficiary(ies) of the distribution options available for an inherited Roth account.
• Identify the conduit and accumulation trust provisions.

Preparation

None