The IRS has finalized new rules regarding the treatment of inherited IRAs, providing clarity that investors have been awaiting for years. Under these new rules, individuals who inherit retirement accounts are required to withdraw the entire amount within 10 years, with most needing to take out a minimum amount each year. These rules replace the Stretch IRA that was assumed by savers during Trump’s presidency. Additionally, a new law has been enacted that allows Americans to withdraw up to $1,000 from their 401(k)s and other retirement accounts for self-defined emergencies without incurring a penalty. This measure aims to assist individuals as they continue to face high inflation.
