This act is affecting especially those with large IRAs who had planned on a stretch IRA for their heirs.

This act ends the stretch IRA rules.

Until Secure Act, a designated beneficiary of an IRA could extend post-death “stretch IRA” required minimum distributions over his/her lifetime. Anyone who has a young beneficiary may be able to stretch distribution for maybe 70 years!! Now that dream is gone with Secure Act.

Large IRA owners are the most affected as they might have planned to leave this unused large legacy to Kids or Grandkids and stretch it over a long period. Someone who passed on before 2020 and have stretch IRAs that will not get affected. This law offers few exemptions for a few beneficiaries.

Unfortunately, the SECURE Act did away with stretch provision for people who inherit in 2020 or later and replaced it with a 10-year payout provision for most non-spouse beneficiaries.