The SECURE Act 2.0 brought some of the biggest changes to retirement planning in decades. While most people think it only affects their retirement accounts or may not even know about these changes at all, the SECURE Act 2.0 directly impacts how your loved ones will access your retirement accounts after your death and how much they’ll pay in taxes, which could take a big bite out of their inheritance if not reconsidered now.
In this article, you'll learn what the law changed, how these updates affect your beneficiaries, what mistakes families commonly make as a result, and how a comprehensive estate plan with regular review ensures your loved ones don’t face unnecessary taxes, delays, or stress when they need support the most.
Let’s break down the changes in a clear and simple way so you can make the best decisions for the people you love.
Before diving into the details, it’s important to understand that retirement accounts work differently from other assets. These accounts come with strict rules about taxes, timing, and withdrawals. When Congress updates those rules, your family’s inheritance can change significantly - sometimes for the better, and sometimes with surprising consequences.
The SECURE Act 2.0, passed in 2022, made several major updates to the original SECURE Act of 2019. Many of these changes shift who benefits from your retirement accounts and how quickly your beneficiaries must withdraw the money. According to the House Ways & Means Committee, this legislation represents “the most significant expansion of retirement savings opportunities in more than 15 years” (source: U.S. House Ways & Means Committee).
But opportunity only exists if your planning is aligned with the law. That’s where families often get tripped up, especially when older estate plans were built under rules that no longer exist.
As you’ll see, failing to update your plan could result in higher taxes for your beneficiaries, faster depletion of retirement accounts, and confusion that makes a difficult time even harder.
The SECURE Act 2.0 made dozens of updates, but the following are the ones that most directly affect your life and your loved ones.
The age at which you must start withdrawing money from your traditional IRA or 401(k) has increased. It now moves in phases:
This gives you more time for your investments to grow before you must withdraw. However, delaying RMDs may also mean larger account balances later, which could create larger required withdrawals and bigger tax bills for your heirs unless your plan accounts for it.
Why this matters:
A larger account means larger taxable withdrawals for your beneficiaries. If your plan doesn’t include tax-minimizing strategies, they could face unnecessary tax burdens at the worst possible time.
Under the original SECURE Act, most beneficiaries who inherit a retirement account must empty it within 10 years, with a few exceptions.
The SECURE Act 2.0 did not remove that rule.
This means if your child or another loved one inherits your IRA or 401(k), they may need to accelerate withdrawals, pushing them into higher tax brackets. The IRS confirms that beneficiaries who are not eligible designated beneficiaries (as defined in the tax code) must follow the 10-year withdrawal rule.
Why this matters:
Your child could lose a significant percentage of what you hoped to leave them simply because the withdrawals are forced faster (and therefore taxed higher) than expected.
Many people name a trust as the beneficiary of their retirement accounts, often thinking it creates control or protection. But under the SECURE Act and SECURE Act 2.0, this can backfire if the trust language wasn’t updated.
Old trust provisions may unintentionally:
Because tax rules surrounding trusts and retirement accounts are complex, outdated planning is now one of the leading causes of accidental tax consequences for families.
Why this matters:
If your trust was created before 2020, or even before 2023, it may no longer work as you intended. Your loved ones may inherit a tax problem instead of a gift.
Here's a real example of how this happens: Many trusts created before 2020 were set up to pass along retirement money slowly—just a little bit each year based on IRS rules. That made perfect sense at the time. But the new law eliminated those yearly requirements for most people.
Now here's the problem: if your trust says it can only distribute 'the required amount each year,' and there's no required amount anymore, your trustee's hands are tied. They can't touch the money for nine years. Then in year ten, when the law says the entire account must be emptied, everything comes out at once.
Instead of your child receiving manageable amounts over time, they get hit with a massive tax bill all in one year—potentially losing hundreds of thousands of dollars that you worked a lifetime to save for them.
How These Changes Affect the People You Love Most
You might notice a pattern here: while the SECURE Act 2.0 provides benefits for you during retirement, it often creates new responsibilities and tax burdens for your beneficiaries.
This is exactly why comprehensive estate planning is not just about documents. It’s about ensuring real-world clarity for the people you love.
Even small missteps can leave your family:
And at the time they’ll need support the most, they’ll have to figure everything out alone, unless you have a comprehensive plan and a trusted advisor who already knows your family, your assets, and your wishes.
The Importance of Updating Your Plan Now
Whenever federal law changes, your estate plan must evolve with it. That is especially true for retirement accounts, because they often represent a significant portion of a family's wealth.
Most traditional estate plans fail because they are never updated. The SECURE Act 2.0 made this even more important. A plan created even a few years ago may not work today.
Work with a Personal Family Lawyer® that will help you:
You don’t have to guess whether your plan will work. You can know.
Unlike traditional planning, which usually ends with a signed document, a comprehensive plan includes:
These are the protections that keep your family out of court, out of conflict, and out of avoidable tax trouble.
The SECURE Act 2.0 is a reminder that laws change, and when they do, your plan must change with them. A static plan fails. A relationship-based plan works when your loved ones need it the most.