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IRA Beneficiary Payout Options - The Old Rules vs The New Rules

As you have most likely heard, in 2020 we had some of the most comprehensive changes to IRAs as we have had in over 15 years. While a few of the changes leaned towards positive, the biggest change became a huge negative and the target was IRA beneficiaries. This program will focus on which options are available to which beneficiaries depending on the IRA owner's date of death.

OnDemand
Recorded Tuesday,
April 6th, 2021
Presented by Patrice Konarik
1h 30m total length
2 CEU Credits
$279.00 or 1 Token

Includes: 30 Days OnDemand Playback, Presenter Materials and Handouts

  • IRAs
  • Bank Legal Counsel
  • Branch Manager
  • Compliance Officer
  • Customer Service Representative
  • Deposit Operations Manager/Specialist
  • Internal Auditor
  • New Accounts Representative
  • Private Banker
  • Senior Management
  • Teller
  • Trainer
  • Trust Officer

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As you have most likely heard, in 2020 we had some of the most comprehensive changes to IRAs as we have had in over 15 years. While a few of the changes leaned towards positive, the biggest change became a huge negative and the target was IRA beneficiaries. This program will focus on which options are available to which beneficiaries depending on the IRA owner's date of death.

In 2002, the IRS extended the payout to beneficiaries based on their age the year after the owner's death and their Single Life Expectancy. This helped beneficiaries who were mostly stuck with a 5-year payout before 2002 to possibly spread out inherited funds over a a 20-30 year payout greatly reducing the amount they had to claim as income each year.

Beginning for those inheriting IRA funds in 2020 and beyond, that longer payout came to a screeching halt for most beneficiaries. For non-eligible designated beneficiaries the longest payout is 10 years - regardless of their age or the IRA owner's age when he/she died.

The most confusing aspect of this change is the transition of Single Life Expectancy to a 10-year Payout. We will delve into who is "grandfathered" by the old rules and who must use the new rules.

What You'll Learn

  • What are the 3 new categories of beneficiaries to determine payout options?
  • Which beneficiaries are 'grandfathered' under the old rules for the Single Life Payout?
  • What obligations do we have to monitor a 10-year payout option?
  • Who must take the RMD of the deceased owner in the year of death?
  • Why is it so important that we report death distributions correctly?
  • How do we set up an Inherited IRA properly?
  • What happens to a beneficiary in Single Life payout dies after 2019?
  • What happens if the beneficiary does not close his/her Inherited IRA in 10 years?
  • How do the new payout rules affect a trust or estate beneficiary?
  • What are the best options for spouse beneficiaries?

Learn caption

Everyone who answers members or beneficiary questions should attend this informative Webinar including: Member Service Reps, Operations Dept., Call Center Reps, Legal Counsel, Trust and Investment Officers, Branch Managers and anyone who would like a thorough discussion of the most legal aspects of IRA payouts after the owner's death.

Patrice Konarik

Instructor Bio

Patrice M Konarik is president of Sunwest Training Corp founded almost 30 years ago and is 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 and after 28 years on the road providing live training nationwide, is now concentrating on providing informational IRA and HSA Webinars through OnCourse Learning / www.BankWebinars.com. She has a BS in Management Science from New York’s Binghamton University and previously held her Certified Financial Planner Designation for 23 years.

Continuing Education Credit Information

Recommended for 2 CEU Credit Hours. After attending this webinar, each attendee can receive a Certificate of Attendance for self-reporting of CEU Credits.

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