Retirement industry officials have removed a provision in Senate legislation (S.1813, the Highway Investment, Job Creation and Economic Growth Act) that would reduce the value of inherited IRAs. And they have done so as quietly as the provision was introduced.
It was added to the highway bill by Sen. Max Baucus, D-Mont., chairman of the Senate Finance Committee, on Feb. 7 during markup of the bill by his committee.
The Financial Services Institute, the Insured Retirement Institute and the National Association of Insurance and Financial Advisors all sought to have the provision removed from the bill.
As currently stated in the bill text, the provision would no longer permit tax-deferred stretches of IRAs (or stretch IRAs) for beneficiaries other than a spouse, minor children or the disabled. Others, like adult children, would only be permitted a five-year window to defer.