STRETCH IRA: STRATEGY FOR THE FUTURE
A Stretch IRA is a wealth-transfer strategy that allows you to extend the period of tax-deferred earnings on the assets of a pre-existing, or newly established IRA by passing your IRA assets to a younger beneficiary. This allows the money that would have been paid in taxes to work for your heirs, instead of Uncle Sam.
An article in Business Week, November 13, 1995, states an IRA beneficiary lost over 90% of his IRA due to immediate taxation. This could have been avoided had a proactive advisor been consulted.
Under IRS regulations issued in 2002, any individual who holds a traditional IRA can change the beneficiary to "stretch" IRA distributions. If you do not need to live on your IRA assets and want to benefit younger generations, consider using the Stretch IRA strategy. |