What: SECURE 2.0 provisions include changes for special needs trusts established for a beneficiary with a disability
Key Dates: Effective for calendar years beginning after 12/29/2022
Impacted Audiences: Participants with a 401(a) defined contribution plan, 457(b) plan or IRA with a beneficiary that has an established special needs trust (other plan types not offered by MERS may be impacted)
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Modification of required minimum distribution rules for special needs trusts
SECURE 2.0 places limits on the ability of beneficiaries of defined contribution retirement plans and IRAs to receive lifetime distributions after the account owner’s death. Special rules apply in the case of certain beneficiaries, such as those with a disability. In the case of a special needs trust established for a
beneficiary with a disability, the trust may provide for a charitable organization as the remainder beneficiary.
This change is effective for calendar years beginning after 12/29/2022 and helps participants manage financial priorities so they can achieve long-term financial security.
More information: MERS SECURE 2.0 Resource Page