Stretching IRAs


Dryer sheet aficionado
Jan 23, 2005
Anybody here familiar with this topic?

I have been reading Ed Slott's newest book about stretching IRAs. Has anyone here read it yet?

I heard about stretch IRAs in an investing class. If I understand it right, what it means is you and spouse put each other as beneficiary of the IRA. When one of you dies, then you put your kids on the IRA.

I could have this wrong. Maybe you put your kids on the IRA instead of your spouse, and count on them to keep the surviving spouse in coins?? The important idea is to keep Uncle Sam's greedy fingers out of it as long as possible. ;)
For the most part, you are correct.

With a Roth IRA, a spouse can name his or her spouse as the beneficiary. Once the spouse dies, the remaining spouse can then roll that IRA into their own. They DO NOT have to take RMDs.

The inheriting spouse can then name a child or children as beneficiaries. If set up properly, once the remaining spouse dies, the children can the split the IRA and take RMDs based on their individual life expectancies.

It is pretty cool concept.

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