New Proposed Regulations from the IRS Modify the “Stretch” IRA Rules for Retirement Accounts Once Again

When the SECURE Act was signed into law in December of 2019, it ushered in significant changes to the rules for retirement accounts and effectively changed the way financial professionals helped clients prepare for retirement. Although the Act featured numerous provisions, Congress made a significant modification to the “stretch” IRA rule. In the two years since the passage and enactment of the SECURE Act, practitioners believed the resulting outcome to the “stretch” IRA strategy was understood, but new proposed regulations from the IRS released in late February modified the rules once again.