Arizona Estate Planning

Congress May Kill Inherited Stretch IRAs

Forbes: “the new stretch IRA limits, which Finance Committee Chairman Max Baucus (D-Mont.) first floated in the Senate last year, would require most retirement accounts inherited by anyone other than a spouse to be distributed (and in the case of non-Roth accounts taxed) within five years of the owner’s death. Disabled heirs would still be able to stretch out withdrawals over their life spans and minor heirs wouldn’t have to take all the money until reaching 26.” The article lists four steps to take if the legislation becomes law.

Baby Boomers, Don’t Count On An Inheritance

Wall Street Journal: “Baby boomers: Get ready for a double whammy.

For years now, there's been a lot of talk about boomers getting tremendous windfalls as their parents pass on. Many boomers, in fact, have been lagging behind in their savings, betting on—hoping for—big bequests, especially since many of them suffered big losses in 2008.

But for a growing number of boomers, things aren't going according to plan. The postwar generation is living longer—and many are spending their savings along the way. And, of course, many of them also took a hit in 2008.

The result is that, as a group, boomers likely won't be getting as much of an inheritance as they hoped. Even worse, far from receiving a bequest, a growing number are tapping some of their own savings to help their cash-strapped parents make ends meet.

For families, the result is often a lot of scrambling, dashed dreams, and conflict and angst as parents and children try to come to grips with the lean new reality—and divide up a smaller pie.”