Three of the new provisions are very important for the owners of existing IRAs and other retirement accounts:
- The “required beginning date” on which the owner of the account must begin taking required distributions from the account is now April 1 after the year he or she reaches age 72, an extension of one to two years.
- The prohibition on contributing to an IRA after the owner must begin taking required distributions has now been removed.
- The money that is left in the account after the death of the owner or (in many cases) the owner's spouse must now be distributed to the designated non-spouse beneficiary within ten years of the death. Those distributions are taxable income. The previous preferred option of taking those funds out over that beneficiary’s life expectancy has been removed.