Effective January 1, 2020, the use of IRAs as an instrument for passing a stream of income tax free or tax deferred withdrawals will be limited to ten years. Prior to the changes passed in Congress’s spending package, an IRA owner could pass on his/her withdrawals to a young beneficiary which could stretch over sixty years depending on their life expectancy. Pursuant to the new regulations, an IRA heir will need to withdraw any remaining assets within ten years regardless of their life expectancy. The new regulations will impact many estate plans and may have a significant impact on ROTH IRA owners who subjected assets to taxation seeking tax free distributions for future generations. The regulations will not impact decedents prior to December 31, 2019 and/or surviving spouses.
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