Entries filed under 'Stretch IRA'

    How to "Stretch" Your Nest Egg When You're Toast

    December 19, 2014 4:35 PM by Brian Dobbis

    The Stretch IRA beneficiary option facilitates a potential multiyear intergenerational wealth transfer after an account owner passes away.

    THE ROAD TO RETIREMENT with BRIAN DOBBIS

    Wouldn’t it be nice if your retirement nest egg could last for multiple generations? The Stretch IRA basically allows a named beneficiary upon the account owner’s death to control IRA payouts. The beneficiary effectively inherits a tax-deferred account, or if it’s a Roth, a tax-free account from which payments can be spread over a significant number of years. That allows tax-deferred compounding to continue, and taxes on the payments may be minimized or at least defrayed for a considerable period.

    Read More »

    Inheriting a Roth IRA: Some Strings Attached

    October 20, 2014 4:26 PM by Brian Dobbis

    Individuals who inherit Roth IRAs need to be aware of the rules governing what can and can’t be done with the windfall.

    THE ROAD TO RETIREMENT with BRIAN DOBBIS

    Roth IRAs can be a terrific estate-planning tool, providing potential tax-free payouts to your heirs for their lifetimes—and, in some cases, beyond.

    How much control the beneficiary has over the inherited Roth IRA depends on the status of the inheritor. In general, beneficiaries who inherit from their spouses have more or less carte blanche with regard to what they do with the money. Not so, with non-spousal beneficiaries, who are subject to a litany or rules.

    Read More »