Skip to content

Understanding The SECURE Act, Part 2: Stretch IRAs

Today’s Prep:

In part two of our series on the SECURE Act, we talk about some of the downsides to the changes. Eric explains the stretch IRA and what impact the SECURE Act made on it.

(Click the featured times below to jump forward in the episode)


Equipping Points:

What are some of the negative sides to the SECURE Act? While we talked about some of the ways you may benefit from the changes last week, there are some changes that you might not be as thrilled about. The biggest downside being the elimination of the stretch IRA.

Previously, the stretch IRA allowed a non-spouse beneficiary to inherit tax-deferred accounts and span it over the course of their lifetime. Now, the account will have to be withdrawn over a ten-year period following the death of the original account holder.

Eric talks about what caused this change and the exceptions that come into play for various individuals. Certain people will still be able to stretch the inherited IRA based on specific situations. When does this change effective? Find out more on today’s episode of the Retirement Ready podcast!

Listen to the full episode or click on the timestamps below to learn more about the SECURE Act.

[1:11] – The stretch IRA is being eliminated with the SECURE Act.

[2:17] – Before the SECURE Act, a non-spouse beneficiary would only have to take out a percentage based on their life expectancy.

[4:19] – Why is this changing?

[6:17] – What options does a surviving spouse have?

[7:19] – What are the exceptions?

[9:40] – When does this go into effect?


Related Resources:

Understanding The SECURE Act, Part 1

Retirement Savings Options: IRA Contributions & Roth Conversions

How To Ask Better Financial Questions

More From Eric:

The host: Eric Peterson - Contact - Call: (515) 226-1500

Subscribe To The Podcast:

Apple Podcasts  -  Google Podcasts  -  Spotify  -  Stitcher  -  iHeartRadio  -  TuneIn

Check out some other recent episodes

Should I Keep My Life Insurance Policy + Other Mailbag Questions

April 2, 2020

If your life insurance policy goes up after you turn 60, you may wonder if it’s still something
worth paying for. Or maybe you’ve just received an inheritance and don’t know what to
expect when it comes to taxes. Eric answers three questions from the mailbag this week.

Read More

Making Home Renovations and Protecting Your Retirement Income

March 26, 2020

Are you wondering how to pay for a home renovation in retirement? Or, are you concerned about the market volatility with retirement a few years away? Eric answers three questions from the mailbag all related to making wise decisions regarding money in retirement.

Read More

Life Happens: How Will Your Financial Plan Be Impacted?

March 19, 2020

We all know at one point or another something is bound to happen that can throw off your financial plan. How will you address these possible scenarios when it comes to your financial plan?

Read More

Don’t Mistake Good Intentions for Sound Financial Advice

March 12, 2020

Can you tell the difference between good intentions and bad advice? Sometimes, even people who are truly trying to help can give you bad information and cause you to question your financial decisions.

Read More

Stages Leading Up To Retirement

March 5, 2020

Life isn’t just “before retirement” and “after retirement” when it comes to your financial plan. There are several stages leading up to and through retirement. Which stage are you in?

Read More

5 Frequently Asked 401k Questions

February 27, 2020

Do you have a question about your 401(k)? There’s a good chance you’ve wondered about at least one of these five frequently asked questions when it comes to your 401(k).

Read More

What You Should Know About Leaving an Inheritance

February 20, 2020

Estate planning is just one piece of a comprehensive retirement plan but it’s an important one because you only get one opportunity to get it right. The problem is many individuals have very little experience with inheritances and often make mistakes when handing them down or receiving them. Let’s try to change that today by informing you about inheritances and the steps you need to take.

Read More

Reasons Why People Don’t Retire

February 13, 2020

Why would someone put off retirement? Are there valid reasons to wait, even if you are of retirement age? Today we’ll look at the reasons that we often hear and the meaning behind what is said.

Read More

Financial Advisor Green Flags

February 6, 2020

How do you know if you’ve found the right type of financial advisor? What is most important when looking for someone to work with who will create the right types of financial strategies for where you are in life?

Read More

Understanding The SECURE Act, Part 1

January 23, 2020

What is the SECURE Act? And how does it impact your retirement plans? We’ll outline some of the major changes you need to be aware of in this two-part series.

Read More

Leave a Comment