A Stretch IRA is a term used to describe an IRA established to extend the period of tax-deferred earnings, possibly over multiple generations. A Stretch IRA can be established at any time. After the owner of the IRA dies, his/her beneficiaries will have the longest allowable period of tax-deferral on the required distributions of the IRA assets. The beneficiaries must start taking their required distributions in a timely manner once they inherit their portion of an IRA so it's important that each beneficiary is informed of your intentions.
This step-by-step is for informational purposes only and is not meant to replace advice from your financial advisor.
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