[WSBAPT] SECURE Act and loss of the stretch IRA

[Chris Moore]

In reading the text of the new law, I don’t believe that spouses lose any
rights they have now.  There are exceptions to the rule, which does not
apply to ‘eligible designated beneficiaries’ (EDBs).  The definition of an
EDB includes spouses and chronically ill or disabled beneficiaries.  The
persons losing the stretch are children over the age of majority and other
persons more than 10 years younger than the IRA holder.  Unknown if naming
an accumulation or conduit Trust as a beneficiary would cause the 10 year
RMD period to take effect.  Presumably not if a spouse or disabled person
is the sole beneficiary.



https://www.congress.gov/bill/116th-congress/house-bill/1994/text?q=%7B%22search%22%3A%5B%22Setting+Every+Community+Up+for+Retirement+Enhancement+Act%22%5D%7D&r=1&s=2#toc-H084B5EBD76DF47C0B895121999E2270E



Sincerely,

*Chris J. Moore*
Christopher J. Moore, JD, CPA - Inactive, AEP®, EPLS*
Creason, Moore, Dokken & Geidl, PLLC
Lawyers
1219 Idaho Street,
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Phone: 208-743-1516; Fax: 208-746-2231
Website: www.cmd-law.com

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Specialist Board, Inc., the only estate planning certification entity
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*From:* wsbapt-bounces at lists.wsbarppt.com [mailto:
wsbapt-bounces at lists.wsbarppt.com] *On Behalf Of *Ronda Larson Kramer
*Sent:* Thursday, September 05, 2019 10:22 AM
*To:* wsbapt List serve <wsbapt at lists.wsbarppt.com>
*Subject:* [WSBAPT] SECURE Act and loss of the stretch IRA



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*

*L**ARSON** L**AW**, PLLC*

*Elder Law, Estate Planning*

1700 Cooper Point Rd SW, Bldg A3

Olympia WA 98502

Ph: 360-259-3076

ronda at larsonlawpllc.com

www.larsonlawpllc.com



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