The demise of the stretch IRA is likely to be unwelcome among financial advisors, who have counseled clients to use them as a way of passing down wealth while minimizing the tax hit. An heir could slowly draw down an inherited account over many decades. But the new 10-year deadline would make the IRA a “lousy estate planning vehicle,” retirement expert Ed Slott tells Kapadia.
With the stretch IRA no longer an option under the bill, Slott suggests possibly naming a spouse as the beneficiary so that the assets can be stretched across the spouse’s lifetime and then passed on to a grandchild, who would have 10 years before having to draw it down completely.
"You still have to get that SEP payment in on time, so don't wait until Oct. 15 when financial institutions and advisors will be inundated with last minute requests. If possible, get your payment in at least a few days earlier," said Ed Slott, founder of IRAhelp.com.