Jerry Taylor breaks down three major IRA changes from the SECURE Act: the required minimum distribution age jumped from 72 to 73 and heads to 75, the stretch IRA is gone for most beneficiaries who now have 10 years to empty inherited accounts, and penalties for missing distributions are steep. Get professional help if you inherit or own an IRA.
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If you have an IRA, you should know that there have been some significant changes in the law regarding your retirement account. These changes came about as a result of the passage of the SECURE Act in 2019, and then other changes in 2022. Some of the more significant changes came about in the area of inherited IRAs. So if you may be inheriting an IRA from your parents or someone else, you need to listen up. For instance, the age at which you will be required to take your minimum distribution has been changed from 72 to 73, and eventually that will change to 75. And if you don't take a required minimum distribution, you will be penalized severely. In addition, there will no longer be a stretch IRA strategy for beneficiaries. That means that for most beneficiaries, you will no longer be able to stretch the distributions over your lifetime. They will all have to be taken within a 10-year timeframe. And that 10-year clock begins to run on the date of death of the person who owned the account. Individual circumstances do differ, however, so you need to consult with a
