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Steps to Stretch Your IRAHow to set up a Stretch IRA- Choose your beneficiaries
The first thing you must do to set up a Stretch IRA is choose your beneficiaries.
- Discuss your intentions with a Financial Advisor
Your IRA must be set up properly for your beneficiaries to benefit from your Stretch IRA so you should work with a person or organization familiar with Stretch IRAs when setting one up.
- Establish separate accounts for each beneficiary
If you have multiple beneficiaries, you need to set up a separate account for each and designate the percentage of the IRA in the account. Once you die, each beneficiary can choose to have his/her share distributed over his/her life expectancy.
- Review the account with your beneficiaries
It is important to let your heirs know that they will inherit a portion of your IRA assets upon your death. Your heirs have a certain time frame to distribute their inherited IRA over his/her life expectancy so it's important that they are aware of your arrangement.
- What is a Stretch IRA?
- Is a Stretch IRA right for you?
- How to set up a Stretch IRA
- Downside of a Stretch IRA
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