I also don't see the problem with the kids having to pull the money out of the retirement accounts within 5 years, paying the taxes on the distribution, and leaving that money to be invested for their retirement in their own taxable accounts.I have clients with over seven figures in their IRAs with only their daughter as their bene.If both of them were to pass under this new rule, it would force their daughter to take over $200,000 a year for the next five years in taxable income when she does not need it and with no means to offset that income (she can only put $17,500 into her 401k), which would be highly punative not only on that income but the income she earns from employment.Under current rules, she would only have to take out about 2.5% per year.That is why this proposal is DOA.
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