I discovered a line in an article recently stating that in the 2015 Obama Budget proposal there is a recommendation to eliminate the ability of IRA beneficiaries to take lifetime distributions—or stretch the tax deferral—on an inherited IRA. Another would require owners of Roth IRA’s to take mandatory distributions beginning at age 70.5, just like taxable IRA owners now do. These two line items, if enacted, would dramatically change the legacy planning for many of our clients and restrict their ability to transfer hard earned capital to their children and grandchildren.
