What is a stretch IRA and how can it benefit a client with a sizable IRA?

ANSWER

The BIDaWIZ Team's Answer:

A "stretch" IRA isn't a specific account, but rather a concept to extend the life of the IRA into future generations. As you may know, when an IRA holder turns 70 1/2, they are required to take minimum distributions. This will always be the case, but you can stretch the IRA by naming specific beneficiaries including your spouse to the IRA. After the account holder passes, it becomes an inherited IRA. The beneficiary will only have to take distributions over their own life expectancy. Hence, the younger the beneficiary, the longer time the IRA can grow.