Got Retirement Savings? Read This Before Your Family Pays the Price

If you’ve saved diligently in retirement accounts like an IRA or 401(k), you probably assume that money will smoothly pass to the people you love when you’re gone.

That assumption used to be safer than it is today.

The SECURE Act 2.0, passed in late 2022, quietly changed the rules in ways that affect not just your retirement — but how your loved ones inherit it, how fast they’re forced to withdraw it, and how much they’ll lose to taxes if your plan hasn’t been updated.

Most families we meet in Northern Kentucky and Cincinnati have no idea these changes even happened. And even worse? Many of their estate plans were built under rules that no longer exist.

In this article, we’ll break down:

• What the SECURE Act 2.0 actually changed

• Why those changes often hurt beneficiaries more than they help

• The common (and costly) mistakes families are making right now

• How a comprehensive, regularly reviewed estate plan protects your family from unnecessary taxes, delays, and stress

Let’s walk through this in plain English — so you can make informed decisions for the people who matter most.

Why the SECURE Act 2.0 Matters to Your Family (Not Just You)

Retirement accounts are different from other assets. They don’t follow the same rules as your home, your bank accounts, or your life insurance.

They come with:

• Strict tax rules

• Mandatory withdrawal timelines

• Penalties if those rules aren’t followed exactly

When Congress changes those rules, the ripple effects land squarely on your loved ones.

The SECURE Act 2.0 built on the original SECURE Act of 2019 and introduced some of the biggest retirement-planning changes in decades. Lawmakers described it as a major expansion of retirement savings opportunities — and for you, that may be true.

But opportunity only exists if your estate plan is aligned with the law.

If it isn’t, your family could inherit:

• A larger tax bill than expected

• Forced withdrawals at the worst possible time

• Confusing rules they don’t understand — while they’re grieving

That’s not protection. That’s paperwork with consequences.

Key Changes You Need to Know (and Why They Matter)

The SECURE Act 2.0 made dozens of updates. These are the ones most likely to impact your family.

1. Required Minimum Distributions (RMDs Start Later)

The age at which you must begin taking withdrawals from traditional IRAs and 401(k)s has increased:

• Age 73 if you were born between 1951–1959

• Age 75 if you were born in 1960 or later

On the surface, this sounds like good news — more time for your money to grow.

But here’s the catch.

Delaying RMDs often means larger account balances later, which can trigger:

• Larger required withdrawals

• Bigger tax exposure for beneficiaries

Why this matters:
If your plan doesn’t include strategies to manage taxes across generations, your children could inherit a problem instead of a legacy.

2. The 10-Year Rule Is Still Here (and Still Dangerous)

Under the original SECURE Act, most non-spouse beneficiaries must empty inherited retirement accounts within 10 years.

That rule did not go away with SECURE Act 2.0.

If your child inherits your IRA or 401(k), they may be forced to take large withdrawals over a short window — often during their peak earning years.

Why this matters:
Accelerated withdrawals can push beneficiaries into higher tax brackets, costing them tens or even hundreds of thousands of dollars over time.

This is one of the most common — and avoidable — mistakes we see.

3. Trusts as Beneficiaries: Where Things Often Go Wrong

Many people name a trust as the beneficiary of their retirement accounts to create control or protection.

Unfortunately, under the SECURE Act rules, outdated trust language can backfire badly.

Old trusts may:

• Force unnecessary taxation

• Prevent beneficiaries from accessing funds when they need them

• Require distributions that directly conflict with your intentions

If your trust was created before 2020 — or even before 2023 — there’s a strong chance it no longer works the way you think it does.

A Real-World Example We See Far Too Often

Before 2020, many trusts were drafted to distribute retirement funds slowly each year based on IRS required minimum distributions. That made sense at the time.

But today, for most beneficiaries, there are no annual required distributions — only the 10-year deadline.

So if your trust says it can only distribute “the required amount each year,” your trustee may be stuck doing nothing for nine years.

Then year ten hits.

Suddenly, the entire account must be emptied at once — creating a massive tax bill in a single year.

Instead of steady support, your child inherits a financial shock. And the IRS gets a bigger cut than necessary.

How These Changes Affect the People You Love

There’s a pattern here.

The SECURE Act 2.0 often helps you during retirement — while creating new risks for the people you leave behind.

Without updated planning, your family could face:

• Court involvement

• Avoidable taxes

• Confusion about how to access accounts

• Delays during an already overwhelming time

Estate planning isn’t just about documents. It’s about real-world clarity when your family needs it most.

Why Updating Your Plan Now Matters

Federal laws change. Retirement rules change. Life changes.

But most estate plans stay frozen in time.

A plan created even a few years ago may not function properly today — especially if it involves retirement accounts.

When we work with families at Freedom Law Services, we don’t guess. We verify.

We help you:

• Review beneficiary designations across all accounts

• Identify tax traps created by the 10-year rule

• Update trust language to reflect current law

• Align your assets with your goals

• Create a clear, complete asset inventory

• Ensure your loved ones know exactly what to do

That’s how planning actually works when it matters.

Why Comprehensive Estate Planning Works When Traditional Planning Fails

Traditional estate planning often ends the day documents are signed.

Comprehensive planning doesn’t.

A proper Life & Legacy Plan includes:

• Ongoing asset and beneficiary coordination

• Regular reviews as laws and life change

• Clear instructions for your loved ones

• A trusted advisor your family can call — not just paperwork

The SECURE Act 2.0 is a reminder of this truth:
A static plan fails. A relationship-based plan protects.

Ready to Make Sure Your Family Isn’t Left With a Mess?

If you want confidence — not surprises — the next step is simple.

Book a free 15-minute Discovery Call with Freedom Law Services today in our Crestview Hills, KY office. Together, we’ll create a Life & Legacy Plan that protects your time, your money, and — most importantly — your family.

Call us at (859) 344-6742 or visit www.FreedomLawServices.com/call-today to book your discovery call today.

This article is a service of Freedom Law Services. We don’t just draft documents; we ensure you make informed, empowered decisions about life and death for yourself and the people you love. That’s why we offer a Family Wealth Planning Session™. During the session, you will get more financially organized than ever before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this valuable session at no charge.

This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you seek legal advice specific to your needs, such advice services must be obtained independently, separate from this educational material.