Understanding The SECURE Act, Part 3

We’re back to breaking down the SECURE Act once again on the podcast. Back in July, we covered a couple of the provisions under the proposed act like penalty-free distributions for the birth or adoption of a child, tax credits, and the lifetime income disclosure for defined contribution plans. But we only briefly touched on the removal of provisions for the Stretch IRA. On this episode, we’ll spend some more time on the Stretch IRA and how the SECURE Act could reshape it if it passes into law.

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1:32 – A refresher of what the SECURE Act is.

2:10 – Myth: The Stretch IRA isn’t being fully “shut down”. It’s being changed, but not necessarily eliminated.

3:23 – It really impacts high earners because of how quickly you’ll have to withdraw large sums.

5:10 – Does this also impact inherited IRAs?

5:56 – The rule could go in place by end of the year.

6:38 – Could people still do a spousal rollover?

7:18 – Nathan & Marc play out a hypothetical situation of what someone will need to do once the law passes.