Pending IRA Legislation effect on “stretch”
Press reports have indicated pending bills will limit the “stretch” for non-spouse IRA beneficiaries. What is the provision in the version just passed by the House and is it different from the Senate version. Thanks
Permalink Submitted by Alan - IRA critic on Thu, 2019-05-23 21:26
Yes, the Secure Act and RESA are different in many respects including the non spouse beneficiary exemptions and distribution periods. These varying bills will have to be resolved in joint committee, so it is difficult to predict the nature of the resulting compromise sent to the President. Given the current poor administration of non spouse beneficiary RMDs that is well known by the IRS, it will be interesting to see they will address even more complexity in the rules. I expect we will be very busy here once something gets signed. These bills are bi partisan and the shorter stretch is what is paying for other enhancements in these bills which everyone seems to like. Therefore, the chances this will advance are much greater than ever before. Once passed, IRA owners may have to re address their beneficiary plans, Roth conversions etc.