Kiplinger’s Personal Finance: Family finances: IRS proposes tougher rules for inherited IRAs

Managing an inherited IRA has never been easy, and it soon could become even more complex.

The Setting Every Community Up for Retirement Enhancement Act, which took effect in 2020, requires adult children and other non-spouse heirs to deplete inherited IRAs and other tax-advantaged accounts within 10 years of the original owner’s death. Before, these heirs could take withdrawals over their life expectancy, which cut the size of annual withdrawals and allowed untapped assets to keep growing.