Stretch IRA’s
Has anyone determined if “stretch IRA’s are preserved under the Tax Plan just passed by both Houses of Congress and if so, are there any limitations to the “stretch”?
Elimination of the stretch from non-spousal beneficiaries was never in any of the versions at any point. However, the calculations of how much revenue it will raise have been done, the language is written, and can pretty much be dropped into any bill. My suggestion for anyone who wants to monitor this going forward is to go to Congress.gov, set up an account, and then set up an alert to be notified by email whenever the term “required minimum distribution” is included in a bill. You should be able to catch it that way.
Permalink Submitted by Alan - IRA critic on Thu, 2017-12-21 03:38
There were no changes to the stretch or related rules. The mandatory 5 year rule proposed by the prior administration was not even discussed. The only change is elimination of conversion recharacterizations which could have the effect of depressing conversion amounts somewhat resulting in more dollars remaining in traditional accounts and therefore higher RMDs for IRA owners.