What exactly does the "stretch" repeal in the 2019 SECURE Act touch?

May 24, 2019 1 Replies

The SECURE Act has passed the House 417-3 and is expected to pass the Senate and by signed into law.



I've seen articles talking about how it eliminates "stretch" IRAs. However, when I look at the text of the engrossed bill, the limitation of "stretching" to 10 years only appears to be in the context of defined contribution plans (which an IRA is not). Further, the bill says it is amending IRC 401(a)(9), and IRC 401 is even titled "Qualified pension, profit-sharing, and stock bonus plans", so it sure would seem that IRAs aren't touched by the SECURE Act anti-stretch provision.



Anyone know for sure?


It's been pointed out to me elsewhere that the IRA distribution provisions in IRC 408(1)(6) refer to IRC 401(a)(9) and so this does indeed affect IRAs.

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