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In this brief explanatory video, the speaker outlines how a $300,000 IRA left to a 12‑year‑old grandson is handled under current law. The SECURE Act has eliminated most stretch IRA provisions, meaning the grandson must fully distribute the inherited account within ten years, with no special minor‑exception stretch. The speaker notes that an inherited Roth IRA is generally tax‑free upon distribution. He also mentions alternative savings vehicles that can be used for minors, such as 529 college‑savings plans and UTMA custodial accounts, which may offer different tax and control advantages.
