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

#3335
Alan S.
Participant

Under Sec 501 of the RESA bill in the Senate, the dollar limit was 400,000 for each beneficiary. In your example, if each beneficiary received 400,000 or less they could still stretch their inherited IRA account. But if a beneficiary inherited 400,001 or more valued on the date of death, the 5 year rule would apply. Note that if the value was over 400,000 on date of death, but had fallen to 350,000 by the time the beneficiary found out about the account and submitted the paperwork, the 5 year rule would still apply. The house bill is totally different, so who knows what the compromise provisions will be.