The new law specifically allows retirement money that is paid to a Special Needs Trust for a disabled person to be paid out over the lifetime of the disabled person. Whereas, retirement money paid to most adults that is not disabled must be withdrawn over ten years. Accordingly, it may actually be MORE tax efficient now to name a Special Needs Trust as beneficiary of an IRA.
The Secure Act makes major changes to the rules for inherited IRAs, 401(k)’s, ROTHS, and other deferrable retirement accounts. Effective January 1, 2020, most non-spousal beneficiaries will be required to withdraw an inherited retirement account within 10 years from the date the original owner dies.