What affect will the January 11th proposed regulation changes have on the Stretch IRA®?
We are very excited about the new rules. They have basically changed all the distribution tables as we knew them. The single biggest benefit of the new changes is that everyone over 70 1/2 who had already made their “bad” irrevocable decisions are back in the ball game. We can now go back and help every single one of them correct their mistakes and have a “fresh start”. The changes have also reduced the Required Minimum Distributions (RMD) and placed everyone on 1 single life expectancy table. This means you do not have to worry about life vs. single life, re-calculation vs. term certain. You can also change your designated beneficiary at any time. This will reduce the risk of naming a spouse and having them die before you.
