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Spousal inherited IRAs?

No, non-spousal IRAs. Spouses are exempt, and there are some other exceptions, like for beneficiaries who are disabled or minor children.

Non-spousal IRAs currently have 5-year+ balance of year of death to be drawn, unless RMD's are started within 1 year after the end of the year of death.

So what, exactly, is changing?

Even if you start RMDs within a year of the owner's death (which many beneficiaries do), the account still has to be drained within the 5 years (Senate version) or 10 years (House version).

If it's a small IRA, it's probably not a big deal. But if it's a mid 6 figure IRA (or more), the requirement to take the money out in 5 or 10 years is probably going to bump the beneficiary up a bracket or two, especially when you consider that the chained CPI is going to slow down inflation of the brackets.

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