Inheriting IRAs Just Got Complicated, Thanks to New Retirement Overhaul

The new spending package curtails the Stretch IRA, a popular strategy for passing on tax-free growth to younger heirs

The Stretch IRA is snapping back.

Congress’s year-end spending package limits the ability of savers to extend the life of their traditional Individual Retirement Accounts and Roth IRAs by leaving the accounts to much younger heirs, such as grandchildren.

The change curtails an often simple strategy that has been popular with many IRA owners...