New IRA Stretch Limits

Financial Planning

Pursuant to the new SECURE act recently passed by the senate and signed into law by the president, any IRA, whether Traditional or Roth, must be depleted within 10 years from the original owners date of date.

This is a simplification and limitation from the prior rules which allowed tax-deferred withdrawals depending on the age of the of the beneficiary pursuant to an IRS life expectancy table.

The new 10 year limit would apply to anyone except an exempted group, such as a surviving spouse.

For more details you can visit Investopedia on Stretch IRAs.

Disclaimer

Author: Hanlen Chang

The Law Offices of Hanlen J. Chang is located in San Francisco, California. Mr. Chang is a graduate of Southwestern Law School and UC Santa Barbara. Mr. Chang’s Legal Practice is focused on Estate Planning (with an international subspeciality), Business Law, and Real Estate. Mr. Chang is a member of the Bar Association of San Francisco – International Law & Practice Executive Committee.

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