Wyden targets ‘estate-planning loophole

Benefits Pro reports that legislation that would increase the tax exposure on inherited retirement accounts has been proposed by Senate Finance Committee Chairman Ron Wyden D-Ore.. The item was bundled into the Preserving America’s Transit and Highways Act. Currently, IRA and 401k accounts are required to make annual taxable distributions when their owners reach age 70 and a half. When those accounts are willed to a young beneficiary, the same minimum distributions are required, but can be protracted over a significant period, according to the Finance Committee’s summary of the provision.

via Wyden targets ‘estate-planning loophole’ | BenefitsPro.

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.