SECURE Act Rules for IRAs in a Trust: Estate Planning in Alexandria, VA

Planning for the future means more than just saving for retirement. Planning for your future means making sure your assets are passed on thoughtfully and efficiently. The SECURE Act introduced important changes that affect how IRA assets can be inherited, especially when left to a trust. For individuals focused on estate planning in Alexandria, understanding these rules is critical to ensuring your assets support your long-term legacy goals. 

At JTM Williams Capital Management, we guide clients through these complexities, providing practical strategies and personalized advice. In this blog, we’ll explain how the SECURE Act impacts IRAs left to a trust and offer insights to help you make confident, informed decisions for your family.

Estate Planning in Alexandria: New Rules for IRAs Left to a Trust

The SECURE Act, passed in 2019, introduced changes that impact how IRA assets can be inherited, particularly when left to a trust. For families focused on estate planning in Alexandria, understanding these rules is essential to preserving your legacy and minimizing unnecessary taxes.

One of the most important changes is the elimination of the traditional “stretch IRA” for most non-spouse beneficiaries. Previously, beneficiaries could take distributions over their lifetime, allowing the account to continue growing tax-deferred. Under the SECURE Act, most non-spouse beneficiaries are required to withdraw all inherited IRA assets within 10 years. This accelerated timeline can have important tax implications if not carefully planned for.

Many IRA owners choose to leave assets to a trust rather than naming individual beneficiaries directly. Trusts provide flexibility, allowing you to control how and when your heirs receive distributions. Trusts can help protect the assets from misuse, creditors, or divorce settlements, and align distributions with broader estate planning objectives.

It’s important to understand the differences between conduit trusts and accumulation trusts when planning for IRAs:

• Conduit Trusts: Distributions flow directly to the beneficiaries. This ensures that the IRA maintains the required tax treatment but limits the trustee’s ability to hold or redirect funds.

• Accumulation Trusts: Funds can remain in the trust, giving more control over how assets are distributed, but this may trigger higher taxes if not carefully managed.

For individuals engaged in estate planning in Alexandria, it’s critical to work with both a financial advisor and an estate planning attorney. Together, they can help:

• Review and update trust language to comply with the SECURE Act’s 10-year distribution requirement.

• Determine whether a conduit or accumulation trust is best suited to your family’s goals.

• Coordinate IRA distributions with other estate planning tools, such as life insurance or taxable accounts, to optimize tax efficiency and maintain flexibility.

At JTM, we guide families through all types of complex rules. We aim to help you structure IRA distributions in a way that protects your assets and supports your long-term legacy. By taking the time to review trusts, beneficiary designations, and distribution strategies now, you can provide lasting financial security for your heirs while minimizing potential tax burdens. 

Get Started with JTM for Estate Planning in Alexandria, VA

Planning for IRAs and trusts under the SECURE Act can be complex, but you don’t have to navigate it alone. If you’re focused on estate planning in Alexandria, JTM can help you review your trusts, update beneficiary designations, and create a strategy that protects your legacy. 

Contact us today to schedule a consultation and ensure your retirement assets work as hard for your family as you did.