The SECURE Act continues to shape how retirement accounts are managed and passed on in 2026, and many families are still adjusting to its impact. These changes affect both when you take distributions and how your beneficiaries receive inherited IRA assets. Understanding these updates can help you make more informed planning decisions.
The SECURE Act: What’s Changed
Required Minimum Distribution (RMD) age has increased
The age for Required Minimum Distributions has moved beyond the old 70½ rule. Many individuals now begin RMDs at age 73, with future increases expected. This allows your retirement accounts more time to grow before withdrawals begin. It can be especially helpful if you do not yet need income from your IRA.
- Continued contributions to traditional IRAs
You can continue contributing to a traditional IRA at any age, as long as you have earned income. This allows you to keep building retirement savings later in life. It is a valuable opportunity for those who continue working or want to strengthen their financial position. - The 10-year rule for inherited IRAs
The SECURE Act introduced the 10-year rule for most non-spouse beneficiaries. This means inherited IRA funds must generally be withdrawn within ten years. The previous “stretch IRA” strategy, which allowed distributions over a lifetime, is no longer available in most cases.
Updated IRS guidance also indicates that some beneficiaries may need to take annual distributions during that 10-year period. This can accelerate taxable income and increase the overall tax burden.
- Why this matters for your estate plan
These rules can significantly impact how much your beneficiaries receive after taxes. A large IRA distributed over a shorter time frame can push heirs into higher tax brackets. This may reduce the overall value of what you intended to pass on.
Strategic planning can help address these concerns. Options may include reviewing beneficiary designations, evaluating trust structures, and coordinating IRA distributions with your broader estate plan.
- When to review your plan
If your estate plan includes retirement accounts, it should be reviewed regularly. Changes in the law, your assets, or your family situation can all affect outcomes. Keeping your plan updated helps ensure it continues to reflect your goals.
If you are concerned about how these rules affect your IRA or your beneficiaries, now is a good time to review your plan. Taking action today can help create a more efficient and thoughtful transfer of your retirement assets. Contact us today with any questions or if you need help with planning your estate.