SECURE Act | Ed Slott and Company, LLC

SECURE Act

Assume the primary beneficiary of an IRA is a Special Needs Trust(SNT) for a disabled individual who receives SSI and Medicaid. Does the 10 year rule apply to the remainder beneficiary(who is not disabled) designated in the SNT upon the death of the disabled primary beneficiary?

Yes, once the disabled beneficiary treated as an EDB passes, the 10 year rule kicks in for the remainder beneficiaries. Of course, the 10 years could be longer or shorter than the remaining LE of the deceased disabled beneficiary, which was the rule prior to Secure.

 

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