Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Friday, January 20, 2023

Inherited Retirement Accounts

Richard L. Kaplan, Guy Raymond Jones Chair in Law, University of Illinois Urbana-Champaign, recently posted his article entitled The Declining Appeal of Inherited Retirement Accounts on SSRN which was published in 42 Va. Tax Rev. 267-85 (2023). Here is the abstract of his article:

As retirement accounts proliferate and grow in value, American retirees are increasingly leaving substantial balances in these accounts to their adult children, siblings, and other relatives. Until recently, these new owners were able to withdraw funds from these tax-favored accounts over their lifetimes as their personal circumstances dictated. But legislation enacted in late 2019 and regulations issued in February 2022 have sharply limited the flexibility that non-spousal beneficiaries now have regarding these assets. This article examines those changes, analyzes their impact on the new owners of inherited retirement accounts, and considers what planning strategies are now appropriate.


Articles, Non-Probate Assets | Permalink


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