The IRA Bait and Switch

Congress changes the rules—unless you die before New Year’s Day.

The IRA Bait and Switch by By The Editorial Board of the Wall Street Journal

The trouble for retirement accounts begins on page 643 of Congress’s behemoth spending bill, under the always ominous heading: “Title IV—Revenue Provisions.” That’s where lawmakers upended the meticulous estate planning of who knows how many Americans.

Soon many people who inherit an Individual Retirement Account will be required to empty it within 10 years. Under the old rules, an heir—say, a 5-year-old grandchild—could stretch the required distributions over his lifetime. That meant longer tax-free growth to build family wealth. Smaller distributions also could prevent the heir from vaulting into a higher tax bracket.
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