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Advisor Insights

The Secure Act, RMDs, and Beneficiaries: Another Wrinkle

Here’s what you need to know if you are a current holder of inherited benefits.

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In my July 2021 column, I provided a detailed “Executor’s Roadmap” for determining the post-death required minimum distributions, or RMDs, applicable to the decedent’s beneficiaries. I was sure I’d covered every scenario, but it turns out I left out a big chunk of inherited benefits: benefits that were originated by an employee or IRA owner (the “participant”) who died prior to the effective date of the Secure Act. Sorry about that! Here’s what you need to know for the current holders of benefits inherited from a pre-Secure decedent.