2023 IRA Beneficiary Designations and Payouts

As if IRA beneficiary payout options weren't confusing enough, the last 3 years have brought turmoil to the IRA world with the IRS flip-flopping on how and when beneficiaries should take death distributions after the IRA owner dies. The SECURE Act created three categories of beneficiaries to determine what payout options are available to each category. It's almost like you need a GPS to follow this crazy beneficiary distribution trail.

Recorded Thursday,
March 9th, 2023
Presented by Patrice Konarik
2h total length
$279.00 or 1 Token

Includes: 30 Days OnDemand Playback, Presenter Materials and Handouts

  • Accounting/Reporting
  • Auditing
  • Compliance
  • Customer Service
  • Deposit
  • Deposit Accounts
  • Deposit Compliance
  • General Compliance
  • IRAs
  • Reporting
  • Teller
  • Trusts
  • Branch Manager
  • Compliance Officer
  • Customer Service Representative
  • Deposit Operations Manager/Specialist
  • Internal Auditor
  • New Accounts Representative
  • Private Banker
  • Teller
  • Trainer
  • Trust Officer

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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.

Patrice Konarik

Instructor Bio

Patrice M Konarik is president of Sunwest Training Corp founded almost 30 years ago and located in the Texas Hill Country near San Antonio. With over 40 years of experience in the financial industry, Patrice has focused her expertise on the retirement account area. After 28 years on the road providing live training nationwide, she now concentrates on providing informational IRA and HSA webinars through OnCourse Learning. She has a B.S. in Management Science from New York’s Binghamton University and previously held her Certified Financial Planner designation for 23 years.