03/17/2026
Many families spent years building estate plans around the old “stretch IRA” rules… but times have changed.
Under the SECURE Act, most non-spouse beneficiaries now have to withdraw an inherited IRA within just 10 years. While there’s no early withdrawal penalty, those withdrawals are still taxed as ordinary income—which can create a big tax burden, especially during peak earning years.
In some cases, heirs may even have to take distributions along the way—not just at the end. Either way, the account must usually be fully emptied by year ten.
💡 One strategy some families are exploring: Charitable Remainder Trusts (CRTs)
When set up properly, a CRT can:
✔ Receive IRA assets without immediate income tax
✔ Provide steady income to loved ones over time
✔ Help manage when and how distributions are taxed
✔ Support a charitable cause that matters to you
Of course, there is a trade-off—at least 10% must go to charity—but for those who are charitably inclined, it can be a meaningful way to balance family support with tax planning.
The bottom line: The rules have changed, and it may be time to revisit your estate plan.
If you’d like to learn how this could impact your family—and whether a CRT might make sense—read the full post on our website.
https://www.claritytaxpartners.com/Blog/
