Reply To: SECURE ACT and stretch IRA

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#5053
Alan S.
Participant

If a beneficiary is not more than 10 years younger than the decedent, they will still get the full stretch. That remained in the final bill. Technically, they fall into the class of “eligible beneficiaries”. This provision will allow many sibling beneficiaries to qualify as “eligible”.

Note that a “Chronically ill” person certificated as such as of the date of death is also an eligible beneficiary. Similar to disabled, but has some technical differences. Note that the minor child must be the child of the plan owner, and eligibility to avoid the 10 year rule ends once the minor reaches the age of majority in their state.