Please stay tuned for important disclosure information at the conclusion of this episode.

Welcome to Investing Insights. I'm your host, Ivana Hampton. Thoughts about buying a new car or going on a luxurious trip may cross your mind when you receive an inheritance.

Yet, not following strict rules could deflate your dreams and inflate your tax bill if you're not careful.

After years of confusion and complaints, the IRS finalized new rules for inherited IRAs.

They're scheduled to go into effect on January 1st, 2025.

So what do you need to know if you inherited an IRA since 2020 or expect to in the future?

Denise Appleby is known as the IRA whisperer.

The Morning Star contributor has written about the upcoming changes.

Here's our conversation.

Welcome back to the podcast, Denise.

Good morning. How are you? Thanks for having me back. I'm good. I'm feeling good.

Congress passed two retirement laws that have raised a lot of questions, Denise. Talk about those

concerns that you've heard from financial advisors and heirs.

Okay. So what you're talking about is the Secure Act, right? Yeah. I thought it's been over four

years. The Secure Act was passed into law on December 20th, 2019.

And we had to hit the ground running because most of the rules became effective like a week later.

And one of the most significant changes that was made on a secure at 1.0 is they took away

the stretch IRA strategy that so many advisors loved to recommend.

Now, under the stretch IRA strategy, a beneficiary who was a designated beneficiary,

you're going to hear me use a lot of technical terms here.

So if you fit certain categories, which meaning you're an individual to be a designated

beneficiary, you could take distributions over your life expectancy in most cases. And Secure Act 1.0 says,

...