SECURE Act Ensures Inherited IRA’s Enter the Tax World Faster
The “Setting Every Community Up for Retirement Enhancement Act of 2019” (SECURE Act) passed through the House of Representatives without issue and presently awaits a vote in the Senate where it has stalled. If passed it will dramatically change withdrawals from decedent’s IRA’s for those other than spouses who roll the IRA over and certain other beneficiaries. Presently, an individual beneficiary or appropriately drafted trust can withdraw a decedent’s IRA over an individual’s life expectancy. This means that if your 25-year-old child, grandchild or an appropriate trust is named as beneficiary, the IRA can be withdrawn over 57.2 years. However, under the SECURE Act, that same IRA will have to be withdrawn over 10 years. This will accelerate income tax on regular IRA’s, and get funds out of ROTH IRA’s faster and into the tax world on subsequent earnings.
Read more at https://www.thinkadvisor.com/2019/10/22/senators-aim-to-get-secure-act-passed-by-year-end/?slreturn=20190928134610
and
https://401kspecialistmag.com/ohios-portman-urges-senate-to-pass-secure-act-other-retirement-bills/