Stretch IRA

Regarding a Stretch IRA – is there a limit to the number of times it can be stretched?

Thanks in advance.



To give you an example: I inherit an IRA from my father (non-spousal IRA) and my attained age the year after his death is used in calculating the RMD. At the time of inheritance I establish my son as the designated beneficiary. Two years later I pass and my son becomes owner. However, he and all succeeding beneficiaries must continue to follow the RMD rules established by and for me. That in essence limits the “stretch”.



As Tom indicated there is a limit with non spousal beneficiaries. However, spouses each get a new stretch by assuming ownership of inherited spousal IRAs. If the surviving spouse is much younger there is a significant additional stretch element, including perhaps many years with no RMD whatsoever.

Perhaps the most significant stretching benefit comes not necessarily from avoiding RMDs, but by not taking any IRA distributions while owned or even inherited OTHER THAN RMDs. That of course requires both discipline and having other assets to draw from.



Thank you both – I appreciate it!



Yes, I started thinking after my initial post about spousal beneficaries and what could happen when the surviving spouse marries again to a younger, or as Alan mentions, much younger spouse. That could go on for a long time. 😉



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