Legal Blog
The Weekly Scenario: Replaced Lifetime Stretched IRA
Question: Does the lifetime stretch IRA which is now replaced with a 10-year rule (under the SECURE Act) for the vast majority of beneficiaries apply to Roth IRAs?
Answer: I had to check on this myself as I wasn’t entirely sure the 10-year limitation applied to a Roth. But alas, yes, the 10-year rule applies to both Traditional IRAs and Roth IRAs. Keep in mind, the only required minimum distribution on an inherited IRA is the balance at the end of the 10 years period after death. The 10-year rule dictates that accounts must be emptied by December 31 of the tenth year following the year of death.
As always, if you have any questions or would like to learn more, please contact Steve Shane at sshane@offitkurman.com or .
ABOUT STEVE SHANE
Steve Shane provides strategic counseling to clients in need of estate administration, charitable giving and business continuity planning while minimizing estate, gift, and generation-skipping transfer tax exposure. He offers legal guidance to clients on asset protection and the proper disposition of assets in accordance with the client’s objectives, while employing tax planning techniques such as the use of irrevocable trusts, life insurance planning, lifetime gifts, and a charitable trust. He is also experienced with drafting documents for business planning, the incorporation, and application for exemption for Private Foundations and the administration of decedents’ estates.
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