How Do Inherited IRA’s Work For Non-Spouse Beneficiaries – New Rules

With the signing of the SECURE Act into law on December 19, 2019, there are new distribution options for non-spouse beneficiaries of IRA’s, 401(k), and other employer sponsor plans. Unfortunately, the “stretch option” that many beneficiaries were using prior to 2020 to help minimize the tax hit of inheriting a retirement account has been eliminated. This was replaced with the 10 Year Rule. Our video will cover the new distribution options for non-spouse beneficiaries, how distributions are taxed, who is grandfathered in under the old rules, beneficiaries exempt for the new rules, and tax traps that beneficiaries will need to be aware of.

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