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SECURE Act to effectively end Stretch IRA's. Tax acceleration for some IRA beneficiaries
If passed, this legislation will impact those who have set non-spousal beneficiaries of their IRA's; among other possible impacts.
To note: The bill is promoted as an “enhancement” for IRA and retirement plan owners because it includes provisions allowing them to make significantly higher contributions to their work retirement plan. It also eliminates the existing cutoff of age 70½ by allowing workers of any age to contribute to traditional IRAs, and extends the required minimum distribution age to 72.
The fine print, however, spells massive income-tax acceleration for the families of IRA and retirement plan owners after the death of the IRA owner.
