Ask the Hammer: What Happens when Minor Children Inherit Retirement Accounts?
In this week's Ask the Hammer, a reader asks the question:
“I’m a divorced individual and I’ve named my two minor children as the beneficiaries of my retirement account. If something happens to me, does that mean that they need to take out all the money from my retirement account within 10 years?”
Jeffrey "The Buckinghammer" Levine of Buckingham Wealth Partners, met with Robert Powell, editor of Retirement Daily, to answer this question.
Jeffrey and Bob discuss when the 10-year rule goes into effect after the passage of the SECURE Act. They also explore other options for beneficiaries who happen to be minors, including holding assets in a trust and what taxes one may expect as a result.
Lastly, the pair also explain how Uniform Transfer to Minors Act accounts (UTMA) can be utilized.
Watch the full episode to find out the answer to this reader's question.
Got questions?
Email AsktheHammer@BuckinghamGroup.com
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