When it comes to passing down wealth through an inherited individual retirement account, estate planners have long sought to extend an account’s distributions over the longest period possible, up to and including a beneficiary’s lifetime, a result commonly referred to as a “stretch IRA.” As the beneficiary continues to enjoy tax-deferred growth throughout the distribution period, this strategy can enhance the wealth ultimately transferred.
However, 2019’s Setting Every Community Up for Retirement Enhancement (SECURE) Act, and its progeny,1 significantly curtailed the availability of stretch treatment. With limited exceptions for certain eligible designated beneficiaries,2 individual beneficiaries other than the participant’s spouse must n…