I really have no idea how this plays out in real life. I'm not surprised that people on this board would want the lifetime stretch. I just don't think that's what most people actually do. I just doubt that the average 35 year old making $50K a year is going to stretch that $100K inheritance over their lifetimes. It would be interesting to know the statistics. I could be wrong. And, personally, I would like to keep the stretch provision, but I don't think a 10 year RMD schedule is that bad.
You make a good point, and the group here is clearly out of the norm, but it still could be significant:
From:
https://www.nerdwallet.com/article/investing/the-average-401k-balance-by-age
"Ages 60-69
Average 401(k) balance: $195,500.
Median 401(k) balance: $62,000"
And from here:
https://www.fool.com/retirement/2016/06/27/heres-how-much-the-average-american-has-in-an-ira.aspx
"Pre-retirees generally have well over $100,000 in their IRA, while Americans in the 65-69 age range have over $212,000."
So, "on Average" people in their late 60's have $300k to $400k in tax deferred accounts.
When I looked this up, I was actually surprised, as I expected the number to be lower.
But, "on average" heirs pulling for 10 years probably won't get hurt too bad with taxes.
Those of us with larger deferred accounts are the ones that need to consider tax plans to mitigate the total tax bill.
But, as said previously by others, the "deal" was never to avoid taxes for generations.