Is the Secure Act Good or Bad for Trusteed IRAs?
Here’s a look at what a trusteed IRA is and why it was a “dream product” until the Secure Act came along.
Get Morningstar's essential reading for financial professionals in Advisor Digest.
Depending on your view, the Secure Act has either “killed” the trusteed IRA or given it a new lease on life. I’m in the latter camp. From my angle, the trusteed IRA is the perfect cure for one of the biggest Secure Act-created problems--namely, how to control distributions to a beneficiary under the 10-year rule. But if you’re a financial advisor looking for a sales pitch for the trusteed IRA, the Secure Act made your job harder.