Got Retirement Savings? How the SECURE Act 2.0 Could Impact Your Loved Ones
The SECURE Act 2.0 brought some of the most significant retirement law changes in decades. While many people assume it only affects their own retirement years—or aren’t aware of the changes at all—the reality is very different.
These updates directly affect how your loved ones will inherit your retirement accounts and how much they’ll pay in taxes after you’re gone. Without updated planning, a large portion of what you intended to leave behind could be lost to taxes, delays, or confusion at the worst possible time.
In this article, you’ll learn what changed, how these updates affect your beneficiaries, where families commonly get tripped up, and how comprehensive estate planning—with regular reviews—protects the people you love from unnecessary stress and expense.
Why the SECURE Act 2.0 Matters for Your Loved Ones
Retirement accounts are different from other assets. They come with strict rules around taxes, timing, and withdrawals—and when those rules change, the impact on your family can be significant.
The SECURE Act 2.0, passed in 2022, expanded and modified the original SECURE Act of 2019. While some changes benefit you during your lifetime, others shift tax burdens and timelines onto your beneficiaries.
That’s where many families run into trouble—especially when estate plans were built under rules that no longer apply. An outdated plan can unintentionally increase taxes, accelerate withdrawals, and create confusion for your loved ones when they’re already grieving.
Key Changes You Need to Know
Required Minimum Distributions (RMDs Start Later)
The age at which you must begin taking RMDs from traditional IRAs and 401(k)s has increased:
Age 73 for those born between 1951 and 1959
Age 75 for those born in 1960 or later
This allows your retirement accounts to grow longer—but it can also mean larger balances later, which may result in bigger taxable withdrawals for your heirs if your plan doesn’t address tax planning.
Why this matters:
Larger inherited accounts often mean larger tax bills for your loved ones—right when they need support, not surprises.
The 10-Year Rule Still Applies
Most non-spouse beneficiaries must still withdraw the entire inherited retirement account within 10 years.
That rule did not go away under SECURE Act 2.0.
Why this matters:
Accelerated withdrawals can push your beneficiaries into higher tax brackets, shrinking what you intended to leave behind.
Trusts as Retirement Beneficiaries: A Hidden Risk
Many people name trusts as beneficiaries of retirement accounts for control or protection. But if your trust language wasn’t updated after 2020—or even after 2023—it may now create serious tax problems.
Outdated trusts can unintentionally:
Force large, lump-sum taxable distributions
Restrict access to funds your loved ones actually need
Conflict with your original intentions
A common (and costly) example:
Many pre-2020 trusts were designed to distribute only the “required minimum” each year. Under today’s rules, there may be no required annual amount—which means nothing can be distributed until year ten. Then the entire account must come out at once, often triggering a massive tax bill.
Instead of steady support, your loved one may inherit a tax disaster.
How These Changes Affect the People You Love
A pattern emerges quickly: while SECURE Act 2.0 offers flexibility during your lifetime, it often shifts complexity and tax exposure onto your beneficiaries.
Without updated planning, your loved ones may face:
Avoidable taxes
Frozen or inaccessible accounts
Confusion about what to do first
Delays that create financial strain
And unless you have a comprehensive plan—and a trusted advisor who already knows your family—your loved ones will be left to figure it out alone.
Why Updating Your Plan Now Is Essential
Whenever federal law changes, your estate plan must change with it—especially when retirement accounts make up a large portion of your wealth.
Many traditional estate plans fail simply because they were never revisited. After SECURE Act 2.0, a plan created even a few years ago may no longer work as intended.
When we work together, I help you:
Review and coordinate retirement account beneficiaries
Identify tax traps created by the 10-year rule
Update trust provisions
Align accounts with your goals and values
Create a complete, current asset inventory
Ensure your loved ones know exactly what to do
You don’t have to hope your plan works. You can know.
Why Comprehensive Planning Makes the Difference
Unlike traditional, documents-only planning, comprehensive estate planning includes:
A full, updated inventory of assets
Beneficiary coordination across all accounts
Regular reviews (at least every three years)
A trusted advisor your family can turn to
Ongoing support after your death
This is what keeps your family out of court, out of conflict, and out of unnecessary tax trouble.
The SECURE Act 2.0 is a powerful reminder: laws change. Static plans fail. Relationship-based planning works when your loved ones need it most.
Your Next Step
The SECURE Act 2.0 is a powerful reminder that laws change—and when they do, your estate plan must change with them.
At Starsia Law, we help families make sure retirement accounts, beneficiary designations, and trust language are aligned with current law and real-life needs. Our Life & Legacy Planning® process ensures your loved ones aren’t left with unexpected tax bills, frozen accounts, or confusion at the worst possible time.
If you want certainty instead of surprises, the best place to begin is a Life & Legacy Planning Session®. We’ll help you understand what you have, how the law affects your family, and what steps will ensure everything works exactly as you intend.
Schedule your complimentary 15-minute discovery call today to get started.
This article is a service of Starsia Law, a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Life & Legacy Planning Session™, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love.
The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.