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Greetings, Dave, and welcome. You asked:

<<I have been told there is a change to the IRS rules on IRAs this year that refers to how the money is taxed if both spouses die at the same time.

I have been led to believe that if both spouses die the IRA will go to the beneficiary, but if this is a child(ren), then they will be forced to withdraw the money over 5 years. If the resulting value is > 120% of the parents yearly income, there can be a very large % sent to Uncle Sam as a tax.>>

I'm unaware of any change in law regarding an inherited IRA. Things can get complicated in this area, especially when the decedent is older than age 70 1/2 and has begun minimum required distributions. In that case, a non-spouse beneficiary must take the proceeds at least as rapidly as the IRA owner would have if living. There are exceptions to that, but that's the general rule.

If the IRA owner was less than age 70 1/2 at death, then the non-spouse beneficiary may take the proceeds over the life of that beneficiary provided the payments begin no later than 12/31 of the year following the year of death. (Note: If two non-spouse beneficiaries are involved, the life expectancy is based on the oldest.) If the payments don't begin by then, then all proceeds must be distributed and taxed by 12/31 of the fifth year following the year of death.

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