Reply To: Please post an article on almost-repeal of the Stretch IRA

Home Fairmark Forum Retirement Savings and Benefits Please post an article on almost-repeal of the Stretch IRA Reply To: Please post an article on almost-repeal of the Stretch IRA

#3325
richc
Participant

Are you sure about that, AMTbuff? I thought so too, but when I read the actual text that passed the House it is not at all clear to me that the change applies to IRAs.

Here’s the text: https://www.congress.gov/bill/116th-congress/house-bill/1994/text#toc-H084B5EBD76DF47C0B895121999E2270E

Sec. 401 of the bill has the language about limiting stretch to 10 years. However, that limitation appears to be entirely in the context of defined contribution plans. It starts: SPECIAL RULES FOR CERTAIN DEFINED CONTRIBUTION PLANS.—In the case of a defined contribution plan, if an employee dies before the distribution of the employee’s entire interest — note that it refers to “employees”. And the text of that part of the bill talks about amending IRC 401(a)(9), which is all about “Qualified pension, profit-sharing, and stock bonus plans”.

It’s my understanding that IRAs are not any of those and so it appears to me that the stretch limitation actually passed doesn’t touch IRAs.

  • This reply was modified 2 years, 3 months ago by richc.
  • This reply was modified 2 years, 3 months ago by richc.