51 Democratic Senators voted to end the Stretch IRA by making an inherited IRA end within 5 years of inheriting an IRA. Currently one can “stretch out” an IRA they inherit over their lifetime. That way the one who inherits the IRA continues to get the same tax deferred growth during their lifetime as the original owner of the IRA did. When an IRA ends the taxes must be paid on the growth.
The measure will still have to clear other hurdles, including a Republican majority House of Representatives before it would become law. However, it is in the crosshairs of Congressional attack.
You may recall that a couple of months ago the White House announced that they wanted to limit how much one can save in a Retirement Account. We will continue to watch as the White House and many members of Congress seek to raise taxes and limit investment opportunities. We will seek to continue to limit the tax exposure of our clients.
At the Law Firm of Steven Andrew Jackson, Attorney and Counsellor at Law, we have helped hundreds of families protect themselves and their loved ones, avoid Estate Taxes and Probate Costs, and keep their Estate Plans current with the law through The Customized Protective Estate Planning Solution™.