Proposed accelerated IRA distribution rules for non spouse benie (no stretch)
I have read that there is legislation proposed or pending that will essentially eliminate the stretch IRA (traditional) for non-spouse benies? Can you share any insights you have on the specific proposal and as to whether this would also affect the ability of non-spousal benies to stretch a Roth (as proposed)?
Permalink Submitted by Alan - IRA critic on Thu, 2019-04-18 18:06
Scroll down a couple pages to a thread discussing the two bills in Congress likely to receive a vote with bipartisan support. One bill has a distribution period of 5 years with a 400k exemption, and the other 10 years with no exemption. I don’t think EITHER BILL treats Roth IRAs any differently than pre tax IRAs or qualified plans. Since this provision is estimated to pay for the many benefits to be added to various plans, it is not likely to be erased from either of these bills.
Permalink Submitted by Chuck 2009x on Wed, 2019-04-24 18:28
This Forbes online article is a decent summary and includes Roths. At least this whole issue is getting some publicity this time around.https://tinyurl.com/y2ykxg46