For part three of our series of how the new SECURE ACT may have impact on retirees, we move to the topic of Stretch IRAs.
Before the Act, non–spouse beneficiaries could take required minimum distributions over their younger life expectancy, requiring less to be distributed and taxed each year. Now, these same beneficiaries must make IRA distributions by the end of a 10 yearr time period.
This new law impacts accounts in which the death of the owner occurs after December 31, 2019.
For a great detailed discussion related to this topic and planning concepts, I commend you to the following article in the Wall Street Journal:
If you have questions about the new Stretch IRA rules, please contact me.