The SECURE1 Act kills the stretch IRA for most heirs. Until this new legislation, an heir could generally have required minimum distributions stretched over his or her life expectancy. And that minimized taxes—plus the assets in the heir’s IRA grew tax-free until withdrawn.

Highlights of the new law:

  • Required Minimum Distributions start at age 72 (up from 70½).
  • Most heirs’ IRA payments can’t be stretched out for more than 10 years.
  • But these beneficiaries (with some qualifications) qualify for “life-expectancy” IRA payments: (1) the IRA owner’s surviving spouse; (2) her or his minor child; (3) disabled beneficiaries; (4) chronically ill individuals; and (5) individuals who aren’t more than 10 years younger than the deceased IRA owner.