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2023 IRA Beneficiary Designations and Payouts Webinar


What are the current beneficiary payout options – 5 years? 10 years? Life Expectancy Payouts? None of the above? The SECURE Act, which became effective January 1, 2020, significantly shortened most beneficiary payout options. A 40-year-old son of an IRA owner who died before 2020 with a balance of $500,000 could spread that income over approximately 45 years minimizing their income each year. If the owner died beginning in 2020, that same son would now have to claim that $500,000 in income in a 10-year period, most likely bumping up to a higher tax bracket. This webinar is going to delve into the different types of beneficiaries – spouse vs. nonspouse, and individual vs. entity beneficiaries to apply the rules correctly. The Proposed Regulations that were released in February 2022, and the IRS Notice 2022-53 that postponed the Proposed Regulations until at least 2023, will be thoroughly discussed. We will put the pieces of the puzzle together to lower the confusion on these tricky areas of IRA accounts.\

What You’ll Learn

  • Definition of an eligible, non-eligible and non-designated beneficiary
  • When does the bank pay to a primary vs. a contingent beneficiary
  • Who has to start a Single Life Expectancy payout the year after the IRA owner dies
  • When does the mandatory 10-year close out date apply?
  • Difference between a Type I and Type II trust to determine payout options
  • What happens when a beneficiary disclaims an IRA
  • Procedures for escheating an IRA to the state’s unclaimed property division

Who Should Attend
Any employee who is responsible for answering client’s questions regarding IRAs, including Customer Service, Call Center, Operations, Tellers, Branch Managers, and Trust Officers. Anyone who is involved in the IRS reporting and corrections to IRS reporting are also encouraged to attend.