It’s the End of The Stretch IRA as We Know It

With the December passing of the Secure Act, an important estate and tax savings technique, ‘The Stretch IRA’, has been eliminated for most non-spousal beneficiaries. Beginning with deaths in 2020, the stretch IRA rules are replaced with a 10-year rule for most retirement plan beneficiaries. The new rule requires the account to be emptied within 10 years following the date of the decedent’s death. Unlike the current rule, which required a minimum distribution beginning the year after the date of death, RMDs will not be required under the new rule.
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