Consider a “stretch” to maximize and preserve IRA benefits
Abstract: One of the great benefits of an IRA is that contributions can grow and compound on a tax-deferred basis for years. Distributions are taxable, but there’s no requirement to withdraw any funds until April 1 following the year in which the holder turns age 70½. By structuring the IRA as a “stretch IRA,” you can allow it to last as long as possible. This article shows how a stretch IRA works and the tax benefits it offers for a beneficiary. Or, one can designate a trust as beneficiary.