The Secure Act, which went into effect January 1, 2020, eliminated stretch IRAs which allowed non-spousal beneficiaries to withdraw funds from inherited IRAs over their lifetimes.  The new law requires inherited IRA funds to be withdrawn within 10 years.  The good news is that there are exceptions to this rule.  In addition to the surviving spouse exception, the following IRA beneficiaries can continue to use the stretch IRA rules:

  • A minor child
  • A disabled individual
  • A chronically ill individual
  • An individual who is not more than 10 years younger than the original owner of the IRA

Consult with your tax professional at Ketel Thorstenson about these or other tax matters because each situation is different. Don’t navigate the difficult and ever changing tax codes and legislation on your own.  Ketel Thorstenson CPAs and tax professionals receive advanced training and continuing education all year long to keep our service on the forefront of the tax industry. Call us today for guidance on tax planning, tax return preparation, and Tax Reform affects or questions.