SECURE Act FAQs: Retirement Account Rules Massachusetts Families Should Know

The 2026 SECURE Act rules can affect how quickly retirement funds must be withdrawn after death. Reviewing primary and contingent beneficiary designations can help ensure that retirement accounts remain consistent with the rest of an estate plan.

These SECURE Act FAQs provide general educational information. Retirement distribution and tax rules depend on the type of account, the beneficiary, the age and circumstances of the original owner, and other factors.

Yes. A trust may be named as the beneficiary of a retirement account. However, special federal rules determine how the trust and its beneficiaries are treated for RMD purposes.

Some qualifying trusts may allow certain trust beneficiaries to be treated as designated beneficiaries for retirement distribution purposes. The trust terms, identity of the beneficiaries, and applicable retirement rules can affect the distribution period.

Readers considering trusts can learn more through our Wills and Trusts information and our article about common mistakes in drafting wills and trusts.

Generally, an IRA passes to the beneficiary named on the account rather than according to instructions in a will.

Major life events such as marriage, divorce, the death of a beneficiary, or the birth of a child may be reasons to review beneficiary forms.

Our Estate Planning FAQs provide additional information about wills, trusts, and other planning documents.

A person who fails to take a required distribution may face an excise tax. Under current rules, the tax can generally equal 25% of the amount that should have been distributed, with a possible reduction to 10% when the shortfall is corrected within the applicable correction period.

Beneficiaries should therefore confirm their distribution requirements each year rather than assuming that the 10-year rule allows them to wait until the final year.

Roth IRAs do not require lifetime RMDs for the original owner.

SECURE 2.0 also eliminated lifetime RMD requirements for designated Roth accounts in employer plans, such as Roth 401(k) and Roth 403(b) accounts. However, beneficiaries who inherit Roth accounts remain subject to post-death distribution rules.

In 2026, the general RMD starting age is 73 for many IRA owners. Traditional IRA, SEP IRA, and SIMPLE IRA owners generally must begin RMDs at the applicable age even if they continue working.

For many employer-sponsored retirement plans, such as a 401(k), the plan may permit a participant to delay RMDs until retirement. Different rules apply to certain business owners.

Federal law also provides for the applicable RMD age to rise to 75 for certain younger individuals in future years.

A surviving spouse may have distribution choices that are unavailable to non-spouse beneficiaries.

Depending on the circumstances, a spouse who inherits an IRA may be able to treat the IRA as their own or continue to hold the account as a beneficiary. A surviving spouse may also be able to roll eligible inherited IRA assets into their own IRA.

For a surviving spouse to elect to treat an inherited IRA as their own under the applicable rules, requirements can include being the sole beneficiary and having an unlimited right to withdraw amounts from the IRA.

The best approach can depend on factors such as the spouses’ ages, the type of retirement account, RMD timing, and tax considerations.

No. Certain people are classified as eligible designated beneficiaries and may qualify for different distribution rules.

These beneficiaries generally include:

• A surviving spouse
• A minor child of the deceased account owner
• A disabled individual
• A chronically ill individual
• An individual who is not more than 10 years younger than the account owner

Special rules apply to each category. A minor child of the account owner may qualify for special treatment. The 10-year rule generally begins after the child reaches age 21. 

Sometimes. This is an important point under the rules now in effect.

If the original account owner died before the required beginning date and the beneficiary is subject to the 10-year rule, the beneficiary generally does not have to take annual distributions during years one through nine. The entire balance must still be withdrawn by the end of year 10.

If the original owner died on or after the required beginning date, a designated beneficiary subject to the 10-year rule generally must take annual RMDs during the 10-year period and fully distribute the remaining account by the end of the 10th year.

This distinction can affect withdrawal planning and potential income taxes, so beneficiaries should determine which rule applies to the inherited account.

For many designated beneficiaries who inherit an IRA or defined contribution retirement account from someone who died after December 31, 2019, the entire inherited account must generally be distributed by December 31 of the year containing the 10th anniversary of the account owner’s death.

For example, if an IRA owner dies in 2026 and the 10-year rule applies, the account generally must be fully distributed by December 31, 2036.

The rule applies to many adult children and other non-spouse beneficiaries. However, the timing of distributions during the 10-year period can differ depending on whether the account owner died before or after the date on which RMDs were required to begin.

For additional federal guidance, readers can review the IRS information about required minimum distributions.