The Stretch IRA is Largely Gone. Here are 5 Alternatives to Consider.

The American College of Financial Services
February 8, 2020

With the passage of the SECURE Act this year, making sure your loved ones will be able to benefit from your lifetime of saving is getting complicated. Under new rules governing IRA accounts, so-called “stretch” strategies that allowed beneficiaries to space out withdrawals and minimize tax burden have been cut down to a 10-year time limit. This means you have 10 years to withdraw all leftover funds in an IRA before it disappears forever.

Because of the new regulations, stretch IRA plans as we know them are effectively dead. But there are some workarounds that can get IRA beneficiaries the money they’re entitled to while avoiding the pain of taxation. One of these, according to Steve Parrish of The American College’s Retirement Income Center, is using a trust.

For more of Parrish’s thoughts and strategies for maximizing long-term IRA benefits, read on in Barron’s this week.

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