Stretch IRA:

[carver1]

I was told by someone that I as the owner of the IRA can turn my IRA into a stretch IRA. But was told by others that on my demise the beneficiaries must turn the IRA they inherit into stretch IRAS.
Which is true?

 

[rs0460a]

I was told by someone that I as the owner of the IRA can turn my IRA into a stretch IRA. But was told by others that on my demise the beneficiaries must turn the IRA they inherit into stretch IRAS.
Which is true?

He're what Ed Slott (the IRA expert, IMHO) has to say on the subject (and the link for the entire article):

"....To take advantage of the stretch IRA payout, the beneficiary simply has to take required minimum distributions, or RMDs, beginning in the year after the IRA owner's death."

IRS ruling saves stretch IRA - InvestmentNews

- Ron

 

[kaneohe]

I was told by someone that I as the owner of the IRA can turn my IRA into a stretch IRA.

Not sure what is meant by this unless it is this:
Understand the rules about inherited IRAs - Nov. 8, 2000

which would only apply after your RBD and you started taking RMDs and then passed away.

I doubt that this would force the stretch for the beneficiary since they
would always be able to take a faster method (like taking it all out).
You should post your question on Ed Slott's irahelp.com
forum though and get the real answer and then report back here.
I'm looking for some way to get the stretch for my non-spouse beneficiaries
w/o them being able to change it easily.

 

[FinanceDude]

The "stretch" is a generational one. Truly, it is your beneficiary who only takes RMD each year that is doing the "stretching". Make sure the custodian who holds your IRA allows beneficiary IRAs, not all do, as ridiculous as that sounds........

 

[Sarah in SC]

And it applies to beneficiaries other than your spouse, really, who already can "stretch" it by rolling it into their own IRAs. Otherwise it is an inherited IRA. Oh, and can't be charities or trusts or what have you, must be a person.