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 Now, the account will have to be withdrawn over a ten-year period following the death of the original account holder.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

What Goes Into a Customized Financial Plan?

October 15, 2020

Why should you have a customized financial plan? What do you need to consider and what goals help you build an outline for your plan? Join us as we talk about what goes into the process of setting someone up for a secure future.

Read More

Things That Don’t Matter…Until They Do

October 8, 2020

Certain financial documents might seem like they can be put off for now. But when you need them, it’s important to be prepared ahead of time! Do you have all of these things in place?

Read More

Uncommon Sense in Financial Planning

October 1, 2020

When common sense isn’t followed, what does that look like? What common sense should we adhere to when it comes to financial planning?

Read More

Visiting the Financial Doctor

September 24, 2020

We’ve all been to the doctor at some point, so how is it like working with a financial advisor? We compare the similarities on today’s podcast!

Read More

Mailbag: Should I Withdraw from an Old Annuity?

September 17, 2020

When is a good time to withdraw from an annuity and what should you know ahead of time? Eric answers this and two other questions from the mailbag in this week’s podcast.

Read More

Heard It Through The Grapevine?

September 10, 2020

From million-dollar retirement benchmarks to presidential election fears or predictions, have you heard these through the grapevine? Eric shares what he thinks about these three financial rumors.

Read More

Is This Retirement Fact or Fiction?

September 3, 2020

Ever hear something and think, could that be true? Some of these financial concepts are fact and some are fiction–do you know which is which?

Read More

Are You Flirting with Financial Disaster?

August 27, 2020

You might feel great about where you stand financially but there’s a chance you could be flirting with disaster. We’ll tell you about three key areas where people make mistakes in their planning that can end up causing major financial problems in retirement.

Read More

How To Pack Your Financial Suitcase

August 20, 2020

When you go on a trip, a lot of times it helps to refer to a packing list to make sure you have everything. When putting together a financial plan, do you have everything in order? Let’s talk about what you need to put into your financial suitcase.

Read More

What Is Your Retirement Mindset?

August 13, 2020

When it comes to retirement, where are you at? If you’re getting closer to retirement, it may help to understand your current mindset in order to know how best to proceed.

Read More

Leave a Comment