SECURE ACT

[Brian Haynes]

Under the proposed SECURE Act, RMDs will be limited to a 10-year pay-out for noneligible beneficiaries.  A life expectancy pay-out will still be available for eligible beneficiaries (spouse, minor children, disabled individuals, chronically ill individuals and those not more than 10 years older than the IRA Owner).  I am having trouble determining whether the current RMD rule that provides that if a non-individual beneficiary is named (estate, charity or non-look through trust), and if the IRA Owner dies before his/her required beginning date, then post-death RMD payments must be distributed within 5 years.  Under the SECURE Act, would this 5 year pay-out rule be increased to 10 years if a non-individual is the beneficiary?  Thanks.   

[Griswold]

I don't believe the SECURE Act amends the part of the Code that contains the 5 year rule. So, no, the five year period would not be increased to ten.

[Brian Haynes]

Thank you.