The SECURE Act Changed the Rules. Most Families Haven’t Caught Up.
The Stretch IRA is gone. Most non-spouse beneficiaries now have 10 years to empty inherited accounts — which often means higher taxes, faster, for your heirs.
Your Heirs May Inherit a Tax Bill, Not Just an Account
Before the SECURE Act, non-spouse beneficiaries could stretch inherited IRA distributions over their lifetime. Now they have 10 years. For a working-age heir in their peak earning years, that means stacking inherited IRA income on top of their salary — often at the highest possible tax rate.
The 10-Year Rule
Your children and other non-spouse heirs must empty inherited retirement accounts within 10 years. For large IRAs, that forces them to add huge amounts of income to their tax returns in their highest-earning years.
The Fix Starts Now
A $1M inherited IRA distributed over 10 years is $100K/year added to your heir's existing income. If they earn $150K, they're now reporting $250K — pushing well into the 32-35% bracket.
The Planning Window
The fix isn't at death — it's now. Strategic Roth conversions, trust structures, and beneficiary planning can reduce the tax impact before the 10-year clock starts.
What the SECURE Act Means for a $1M IRA
Example: Non-spouse beneficiary earning $150K inheriting a $1M traditional IRA
"The question isn't whether your heirs will pay taxes on your IRA. It's whether they'll pay at your rate — or theirs."
— Rich Ison, Fiduciary Advisor
Estate Planning Terms That Matter
Stretch IRA (Pre-2020)
Non-spouse heirs could once spread inherited IRA distributions over their lifetime.
Stretch IRA (Pre-2020)
Before the SECURE Act, a 40-year-old heir inheriting a $1M IRA could stretch distributions over 43 years — roughly $23K/year. The tax impact was minimal. Now most non-spouse heirs must empty the account in 10 years — $100K/year stacked on top of their salary.
Beneficiary Designations
These override your will. If they're wrong, your estate plan doesn't work.
Beneficiary Designations
Beneficiary designations on IRAs, 401(k)s, and life insurance pass assets directly — bypassing your will and trust entirely. Outdated designations from a prior marriage or missing per stirpes elections are among the most common estate planning failures we see.
Roth Legacy Strategy
Converting to Roth during your lifetime means your heirs inherit tax-free.
Roth Legacy Strategy
Inherited Roth IRAs are still subject to the 10-year rule, but distributions are completely tax-free. If you convert $500K at your 22-24% rate, your heir avoids paying 32-37% on that same money. You pay less tax now so they pay zero later.
Florida Homestead
Florida offers some of the strongest homestead protections in the country.
Florida Homestead
Florida's homestead exemption protects your primary residence from most creditors, provides a property tax exemption, and limits annual assessment increases to 3%. For estate planning, homestead property has specific descent and devise rules — you cannot freely disinherit a surviving spouse from the homestead.
You spent decades building this. The plan for how it transfers should take more than an afternoon.
What We Help With
Hover or tap each card to see the details.
Beneficiary Optimization
Your beneficiary designations override your will. If they're outdated, your money may go to the wrong people — or get taxed unnecessarily.
What We Do
- Audit beneficiaries on every account (IRAs, 401k, insurance, annuities)
- Align designations with your estate documents
- Ensure per stirpes vs per capita is correct
- Update after any life change (marriage, divorce, grandchildren)
Roth Conversion for Legacy
Converting tax-deferred assets to Roth now means your heirs inherit tax-free money — even under the 10-year rule.
What We Do
- Model lifetime Roth conversion strategy at your tax rates
- Compare heir tax burden: traditional vs Roth inheritance
- Size annual conversions to avoid bracket jumps and IRMAA
- Roth grows tax-free — no RMDs for you or your heirs
Trust Strategies
Blended families, special needs, charitable goals — trusts give you control over how and when your assets transfer.
What We Do
- Evaluate revocable vs irrevocable trust structures
- Coordinate trust with retirement account beneficiaries
- Address special needs, minor children, and blended families
- Work with your estate attorney for seamless integration
Survivor Planning
When one spouse passes, the survivor faces the Widow's Penalty — same income, single tax brackets, higher rates.
What We Do
- Project survivor income and tax scenario for both spouses
- Plan Roth conversions now at lower married rates
- Coordinate life insurance with income replacement needs
- Ensure estate docs match financial account structure
Estate & Legacy Review Checklist
15 items to review with your family and advisor — from beneficiary designations to trust documents to the conversation most families avoid.
- Beneficiary designation audit
- SECURE Act impact assessment
- Trust document review
- Survivor income projection
- Family communication guide
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Estate Planning Connects to Your Whole Plan
Tax Strategy
Roth conversions during your lifetime are the most powerful tool for reducing the tax burden your heirs will inherit. See how it all connects.
Retirement Planning
Your estate plan doesn't work in isolation. It must be coordinated with your income, tax, and investment strategy.
Long-Term Care
Long-term care costs can rapidly deplete an estate. Planning now protects what you've built for the people who matter.
“Estate planning isn’t about death. It’s about making sure the people you love don’t inherit a tax problem alongside your assets.”
Estate Planning Questions
Common questions about inherited IRAs, the SECURE Act, and legacy planning — answered clearly.
Estate Planning Coordination Across the Tampa Bay Region
Florida offers specific estate planning advantages — no state estate tax, favorable trust laws, the Lady Bird Deed, and strong homestead protections. We coordinate estate documents with financial accounts for clients across the Tampa Bay region, ensuring beneficiary designations, trust structures, and tax strategies all work together rather than creating gaps.
Serving clients in Pasco County, Hillsborough County, Pinellas County, and surrounding areas — including Wesley Chapel, Land O' Lakes, New Tampa, Lutz, Trinity, Odessa, Tampa, St. Petersburg, Clearwater, Brandon, Riverview, Lakeland, and Sarasota. We also work with clients across Florida and those relocating to the state.
Protect What You've Built
Let's review your estate plan in the context of the SECURE Act — and make sure your heirs keep as much as possible.
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