The SECURE Act, enacted in December 2019, changes the rules for certain inherited retirement accounts whose original owners died after Dec. 31, 2019. Under the new rule, many heirs to IRAs and 401(k) accounts will have to fully distribute the funds from their inherited accounts (and pay income tax on the distributions) within 10 years of the original owner’s death. The rule does not apply to surviving spouses, minor children, heirs who are disabled or chronically ill, and heirs who are within 10 years of the age of the decedent.
Recent posts by Judi Carsrud
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The IRS Will Correct Confusing Guidance on Stretch IRAs and the SECURE Act
Topics: Legislative & Regulatory Tax Retirement Plans
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NAIFA Urges New Congress to Take Up Bipartisan Retirement Bill
NAIFA is hopeful that the 117th Congress will reintroduce and enact the Securing a Strong Retirement Act of 2020 (SSRA), bipartisan legislation with many provisions to make it easier for employers to offer plans and to encourage higher participation rates by employees.
