Last week, NAELA sent a letter to the IRS seeking guidance on Sec. 401 of the SECURE Act. Under Sec. 401, most individuals will need to take distributions from an inherited retirement account within 10 years. But exceptions to this rule exist for people with disabilities, spouses, or someone less than 10 years younger than the employee. As a result of NAELA’s efforts, Congress added language to protect supplemental needs trusts. The letter to the IRS requests guidance on the following aspects of the new law:
- Implementing 401(a)(9)(H)(iv) in practice;
- Clarifying the definition of chronically ill and the requirements for recertification; and
- Addressing the definition of disabled relating to minors and definition of a minor.
NAELA anticipates the IRS will put out guidance on the SECURE Act later this year.
Read the letter.