PLANADVISER -May/June 2022 - 6
trends
The news that drives the retirement
plan adviser industry
New, Tighter Distribution Rules
Retirement plan
advisers should
revisit retirement
planning for
clients counting
on the 'stretch'
IRA provision for
bequeathing
their individual
retirement
account or
401(k).
WHEN tax-deferred individual retirement
accounts were introduced in 1974, they
were designed for workers not covered
by a qualified retirement plan. Later,
they became available to all U.S. working
taxpayers, and, as money in traditional
IRAs is tax-deferred, they have become a
common tax- and estate-planning tool.
When the fund-owner reaches 72-
or when the beneficiary, if the owner
has died, receives the bequeathed IRA-
that person must begin taking required
minimum distributions.
Earlier this year, the IRS published
proposed regulations that, by virtually
eliminating the so-called " stretch " IRA
provision, will reduce the time frame over
which most heirs must complete the withdrawal.
The regulations were called for
by the Setting Every Community Up for
Retirement Enhancement-aka SECURE-
Act of 2019. Effectively,
the regulations
require that inherited IRA funds must be
drawn down as income in no more than
10 years; this means a larger amount of
money must come out of the IRA over a
shorter period of time and be taxed.
The regulations will affect
inherited
401(k) accounts, as well as IRAs. Thus, it is
important for plan advisers to be mindful
of what the changes mean for retirement
savers and plan sponsors.
Get Educated
Under current rules, some beneficiaries
have been able to draw down the money
over decades, for example if the IRA owner
named a child or a grandchild as the
6 | planadviser.com May-June 2022 Art by Katie Hicks
http://www.planadviser.com
PLANADVISER -May/June 2022
Table of Contents for the Digital Edition of PLANADVISER -May/June 2022
PLANADVISER Industry Leaders Awards
Paving the Way
2022 DCIO Survey
Fool's Gold for 401(k)s?
Design and Stability
A Collective Effort
Cryptocurrency In DC Plans
Real Estate Fund Investments
PLANADVISER -May/June 2022 - Cover1
PLANADVISER -May/June 2022 - Cover2
PLANADVISER -May/June 2022 - 1
PLANADVISER -May/June 2022 - 2
PLANADVISER -May/June 2022 - 3
PLANADVISER -May/June 2022 - 4
PLANADVISER -May/June 2022 - 5
PLANADVISER -May/June 2022 - 6
PLANADVISER -May/June 2022 - 7
PLANADVISER -May/June 2022 - 8
PLANADVISER -May/June 2022 - 9
PLANADVISER -May/June 2022 - PLANADVISER Industry Leaders Awards
PLANADVISER -May/June 2022 - 11
PLANADVISER -May/June 2022 - 12
PLANADVISER -May/June 2022 - 13
PLANADVISER -May/June 2022 - 14
PLANADVISER -May/June 2022 - 15
PLANADVISER -May/June 2022 - 16
PLANADVISER -May/June 2022 - 17
PLANADVISER -May/June 2022 - 18
PLANADVISER -May/June 2022 - 19
PLANADVISER -May/June 2022 - Paving the Way
PLANADVISER -May/June 2022 - 21
PLANADVISER -May/June 2022 - 22
PLANADVISER -May/June 2022 - 23
PLANADVISER -May/June 2022 - 2022 DCIO Survey
PLANADVISER -May/June 2022 - 25
PLANADVISER -May/June 2022 - 26
PLANADVISER -May/June 2022 - 27
PLANADVISER -May/June 2022 - 28
PLANADVISER -May/June 2022 - 29
PLANADVISER -May/June 2022 - Fool's Gold for 401(k)s?
PLANADVISER -May/June 2022 - 31
PLANADVISER -May/June 2022 - 32
PLANADVISER -May/June 2022 - 33
PLANADVISER -May/June 2022 - Design and Stability
PLANADVISER -May/June 2022 - 35
PLANADVISER -May/June 2022 - A Collective Effort
PLANADVISER -May/June 2022 - 37
PLANADVISER -May/June 2022 - 38
PLANADVISER -May/June 2022 - Cryptocurrency In DC Plans
PLANADVISER -May/June 2022 - Real Estate Fund Investments
PLANADVISER -May/June 2022 - Cover3
PLANADVISER -May/June 2022 - Cover4
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