TOP TIPS – How to Handle your Stretch IRA in the Light of SECURE
The stretch Individual Retirement Account (IRA) has long been used as an efficient estate planning strategy. However, with the passing into law of the new Setting Every Community Up for Retirement Enhancement (SECURE) Act, beneficiaries will no longer be able to stretch out required minimum distributions over the course of their lifetime.
Instead, beneficiaries who are not spouses must now exhaust their inherited IRAs within a decade – other exempt parties include under 18s and beneficiaries with certain disabilities. Quite simply, what was once a winning estate planning tool has now become a conundrum.
So, how do you solve this puzzle in order to serve the best interests of beneficiaries while simultaneously reducing exposure to any unnecessary tax burden?