Spouses can still use the "stretch" IRA strategy - set annual required minimum distribution (RMD) based on life expectancy.
1. No annual RMDs
You don't have to withdraw money each year, as long as the account is empty at the end of the 10th year following the year the original owner died.
2. If the deceased had an RMD due for the year
The beneficiary must take the distribution. Failure to do so will result in 50% penalty of the amount that should have been withdrawn.
3. Even Roth IRAs must be emptied within 10 years
You can withdraw contributions the owner made at any time tax-free, but earnings are taxable if the account was set up by the deceased less than 5 years before their death.
The next 2 new rules are more complicated, as discussed in next blogpost.