The SECURE Act changed the game for inherited IRAs, especially for non-spouse beneficiaries. What used to be a “stretch IRA” strategy (spreading withdrawals over a lifetime) is now, for most people, a 10-year clock: the inherited IRA generally needs to be fully distributed by the end of the 10th year. David and Nick break down what changed, why IRS guidance took so long to clarify, and how families can plan around the tax ripple effects—particularly when kids inherit IRAs in their peak earning years.

• The “stretch IRA” mostly applies now only to eligible designated beneficiaries (with spouses treated differently).

• For many heirs (like adult children), the inherited IRA often must be emptied by the end of year 10—which can create a major tax planning puzzle.

• Big inherited balances + high-earning heirs can equal bigger tax brackets and less flexibility.

• Don’t let the tax tail wag the dog: planning should support your bigger goals, not just minimize taxes at all costs.

• Increase the number of beneficiaries (even considering grandkids in the right situations) to spread income and tax impact

• Think holistically: who should inherit IRAs vs. Roth vs. brokerage assets

• Charities can be ideal IRA beneficiaries since they typically don’t pay income tax

• Consider whether it ever makes sense to bypass the spouse at first death (only in very specific situations)

• Roth conversions as a way to pay tax at a potentially lower rate now and leave heirs tax-free withdrawals later

• Strategic beneficiary designations: review them regularly and understand the tradeoffs

“If somebody wants to leave me any amount of money, I’ll gladly pay taxes on it.”

Have questions about inherited IRAs, Roth conversions, or beneficiary strategy?
Contact SRB today at 517-321-4832 or email us at info@srbadvisors.com.

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Welcome to Kitchen Table Finance
Bite-sized financial advice to simplify your money and your life.

The SECURE Act & the “Death of the Stretch IRA”
Why inherited IRA rules quietly changed and why people are only noticing now.

Why These Changes Flew Under the Radar
COVID, delayed IRS guidance, and confusion around implementation.

Who Can Still Stretch an IRA (And Who Can’t)
Non-spouse beneficiaries vs. surviving spouses explained.

The 10-Year Rule for Inherited IRAs
What most children now face when inheriting an IRA.

The Real Tax Problem: Peak Earning Years
Why adult children inheriting large IRAs often face higher tax bills.

Perspective Check: Is the Tax Bill Really the Problem?
Avoid letting tax fears drive irrational decisions.

Strategy #1: Increasing the Number of Beneficiaries
When spreading beneficiaries (including grandkids) can help—and when it doesn’t.

Matching Assets to Beneficiaries
Who should inherit IRAs vs. Roth accounts vs. taxable assets.

Charities as IRA Beneficiaries
Why charities are often the most tax-efficient option.

Bypassing a Spouse: When It Might Make Sense
Splitting beneficiary designations and using multiple 10-year windows.

Strategy #2: Roth Conversions
Paying taxes now to potentially save your kids money later.

Should Kids Help Pay for Roth Conversions?
Intergenerational planning opportunities—and risks.

Talking About Money Across Generations
Why family conversations can prevent planning mistakes.

Strategy #3: Strategic Beneficiary Designations
Understanding the “third beneficiary” — the IRS.

Don’t Let Taxes Override Your Life Goals
Balancing tax planning with enjoyment, spending, and impact.

Final Thoughts on Inherited IRA Planning
Why there’s no one-size-fits-all answer.

How SRB Can Help
Planning inherited IRAs, retirement, and legacy strategies.

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