From Apply Now,
Your Guide to Retirement Planning.
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If you have enough money and income to fund your retirement without dipping into your IRAs, a Stretch IRA might be right for you. Many older persons put all or most of their retirement savings into tax-deferred IRAs with the intention of leaving these as an inheritance for their children. What they didn't anticipate was the tax burden they would be placing on their children or beneficiaries once they inherited the IRAs. A Stretch IRA can make this tax burden much easier for your children or beneficiaries once they inherit your estate. You will, however, need to review your Stretch IRAs periodically to be sure your named beneficiaries are up to date.