President Obama’s budget proposals for the 2016 fiscal year once again called for the elimination of the stretch IRA. It may not happen this year, but sooner or later it is likely to be enacted.

Under the latest proposal, the stretch IRA, which provides a lifetime payout to IRA beneficiaries, would be replaced with a mandate that the payout be limited to five years. This might seem to be a blow to beneficiaries. In fact, however, financial advisors and their clients should be able to find alternative approaches that are at least as attractive.

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