New IRA proposal

Reuters reports that the Obama Administration's proposed 2013 budget includes a new provision for distribution from IRAs. If all accounts owned by the participant hold less than $75,000, he will not be required to take mandatory distributions even after the age of 70. Of course, many will take distributions because they need to, but if they have the option, they will be permitted to forgo the distribution. Ultimately, this will allow them to leave more to their designated beneficiaries. The beneficiaries (other than the spouse) will have to begin taking distributions beginning the year after the participant's death, as is currently the case.