Stretch IRA Tax Provision Stripped from Highway Bill

February 22, 2012

FSI Applauds Leader Reid on Move to Protect Hard-Working American Investors

The Financial Services Institute (FSI) today applauded Senate Majority Harry Reid for amending the Highway Bill so that Stretch IRAs continue to be taxed over a lifetime and not the proposed five years that the bill initially called for. FSI members weighed in with their members of Congress and FSI staff advocated for this provision to be stripped out.

Please see below for a statement by FSI President & CEO Dale Brown:

“With our economy in the shape it’s in, and saving for retirement more difficult than ever, it was critical that this troubling provision be stripped from the bill. The provision would no longer have permitted tax deferred stretches of IRAs for beneficiaries other than a spouse, minor children or the disabled. Others, such as adult children, would only be permitted a five-year window to defer. With the provision requiring beneficiaries to pay taxes over five years, instead of spreading them over their lifetime, this would have greatly deterred saving at a time in our nation’s history when saving is already strained to say the least. We applaud Leader Reid for taking this initiative and protecting saving in America.”