The Latest Developments in the Death of the Stretch IRAThe Latest Developments in the Death of the Stretch IRA

Stretching an individual retirement account refers to the practice of sustaining the tax-deferred status of an inherited IRA for as long as possible when the beneficiary is someone other than a spouse (typically, a child or children). In two articles I wrote for Trusts & Estates in 2016,¹ I demonstrated that the ability to stretch an inherited IRA could make a difference of hundreds of thousands, or even millions, of dollars over a beneficiary’s lifetime.  

In the 2016 articles, I warned of the “death of the stretch IRA,” how the proposed law would work and how advisors should respond to this threat. We now have compelling evidence this law will pass, probably this year, and we also know more about the details. Here’s an update on the pro...