The SECURE Act- What You Need to Know

Now that the SECURE Act has all but eliminated many stretch IRA payouts (by requiring a 10-year liquidation in most cases), “Life insurance moves to the top of the list as an estate and tax planning vehicle for the largest IRAs,” according to Ed Slott’s IRA Advisor newsletter (Jan 2020 edition). Since retirement accounts make up the largest share of many Americans’ net worth, the loss of “stretch” may encourage wealthier Americans to consider other and more comprehensive estate planning strategies for their retirement assets, and life insurance may take the lead as the most cost effective way to restore the value lost to income tax for IRA beneficiaries. Read an analysis here.