[WSBAPT] SECURE Act and loss of the stretch IRA

[Ronda Larson Kramer]

Listmates,

Assuming the SECURE Act of 2019 passes the Senate, which is a definite possibility, is anyone else out there worrying about the impact that the loss of the stretch IRA would have on blended families and on couples where one spouse needs Medicaid for long term care?

First, the act would eliminate a person's ability to prevent their spouse in a second marriage from changing the beneficiaries on their IRA--in other words, if a client prioritizes asset protection above all else and therefore wants to put the IRA into a trust for their spouse in a second marriage, under the new legislation, there would be no way for the surviving spouse to stretch the IRA beyond 10 years.

Second, the act would eliminate the ability of a healthy spouse to transfer a stretch IRA inside a testamentary special needs trust for their sick spouse, where the sick spouse is/will be in long term care and may need Medicaid.

https://www.forbes.com/sites/jamiehopkins/2019/05/24/8-major-ways-the-secure-act-could-impact-your-retirement-plan/#727a0bff3437


Ronda Larson Kramer
J.D., LL.M in Tax Laws, Owner
LARSON LAW, PLLC
Elder Law, Estate Planning
1700 Cooper Point Rd SW, Bldg A3
Olympia WA 98502
Ph: 360-259-3076
ronda at larsonlawpllc.com<mailto:ronda at larsonlawpllc.com>
www.larsonlawpllc.com<http://www.larsonlawpllc.com/>

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