HOW AN IRS CHANGE COULD HURT YOUR HEIRS
The IRS is weighing a change that could leave your heirs poorer than you might hope.
The new federal regulations would require many people who inherit money through traditional individual retirement accounts (IRAs) as well as 401(k)s, 403(b)s and eligible 457(b)s to withdraw funds from the accounts every year over a 10-year period.
The change would apply to most beneficiaries other than spouses and would apply to individuals who have inherited money after 2019. Children aged 21 and up, grandchildren, and the vast majority of those who receive money from an affected account would need to follow the new regulations or rules.
The WSJ reports that the proposed change would require beneficiaries to take minimum taxable withdrawals every year for 10 years from their inheritance in situations where the original account owner died on or after April 1 of the year of his or her 72nd birthday.
McKernan Law is closely monitoring the IRS and its regulation process. Do you need more information or clarity on how these changes can affect you? Contact Kevin: 📧kevin@kmckernan.com or 📞718-317-5007