What the New SECURE Act Means for IRAs, Beneficiaries, and Long-Term Estate Planning
York, United States - November 28, 2025 / Gauge Digital Media /
Bellomo & Associates, LLC Helps Families Navigate the Estate Planning Challenges Created by the SECURE Act
Bellomo & Associates, LLC, a leading elder law and estate planning firm, has released an in-depth analysis to help individuals and families understand how the federal SECURE Act dramatically changes retirement inheritance rules—and why updating an estate plan is now more important than ever.
Insecurity Under the New SECURE…
Passed in 2019 and effective January 1, 2020, the SECURE Act ushered in the most significant shift in retirement and inherited IRA rules in decades. While the law includes positive updates—such as extending required minimum distributions (RMDs) to age 72 and permitting IRA contributions beyond age 70½—it also introduces substantial challenges for anyone planning to leave retirement assets to their heirs.
The firm highlights the most impactful change: the elimination of the “stretch IRA” for most non-spouse beneficiaries. Prior to the SECURE Act, beneficiaries could take withdrawals over their life expectancy, keeping annual taxes manageable and allowing assets to grow tax-deferred for decades. Under the new law, however, most adult children and grandchildren must withdraw the entire balance within 10 years, often during their highest earning years—creating potentially significant tax burdens.
“These new rules can dramatically alter a family’s inheritance and tax exposure,” the firm explains. “Plans built around the stretch IRA may no longer achieve the results clients intended.”
Bellomo & Associates further emphasizes that many existing estate plans contain outdated trust language, especially conduit trusts designed to distribute only the annual RMD. Under the SECURE Act, there are no annual RMDs during the 10-year window, meaning such trusts may unintentionally block beneficiaries from receiving funds until year 10—causing a sudden, fully taxable lump-sum distribution.
The firm identifies additional consequences of the Act, including:
• Accelerated taxation that may push beneficiaries into higher income brackets
• Reduced long-term asset protection for inherited IRAs
• Complex planning considerations for blended families, special needs beneficiaries, and high-net-worth households
Despite these challenges, Bellomo & Associates notes that strategic planning can still protect families and minimize tax exposure. The firm outlines several planning opportunities, including:
• Roth IRA conversions to reduce future taxable distributions
• Charitable Remainder Trusts (CRTs) to replicate long-term income streams
• Strategic lifetime withdrawals and gifting to “flatten” future tax impact
• Life insurance strategies to replace after-tax retirement assets
“Estate planning under the SECURE Act is not one-size-fits-all,” the firm says. “Every family’s circumstances are different, and every plan must be carefully tailored.”
Bellomo & Associates strongly encourages individuals—especially those with IRAs, 401(k)s, or other qualified retirement accounts—to review their estate plans if they have not updated them since 2020. This includes revisiting beneficiary designations, trust structures, and tax strategies to ensure they align with current law and family goals.
“Laws change. Life changes. Your estate plan must change with them,” the firm advises. “By proactively updating your documents and strategies, you can protect your legacy, reduce unnecessary taxes, and ensure your wishes are honored.”
For families seeking guidance on how the SECURE Act affects their estate, tax, and retirement planning, Bellomo & Associates, LLC offers comprehensive consultations and individualized planning services.
Contact Information:
Bellomo & Associates, LLC
3198 E Market Street
York, PA 17402
United States
Jeffrey Bellomo
(717) 220-8726
https://bellomoassociates.com/
Original Source: https://bellomoassociates.com/blog/insecurity-under-new-the-secure-act/
