There is now a tightening on the distribution timeline for inherited IRAs and workplace retirement accounts.
Many need to be cleaned out within 10 years of the death of the IRA owner or 401(k) participant.
The exceptions allow payouts over the beneficiary’s life expectancy for surviving spouses, the disabled or chronically ill, minor children until they reach 18 and beneficiaries who are not more than 10 years younger than the account owner.
Inherited accounts of individuals who died before 2020 aren’t affected