You don’t “buy” a Stretch IRA from any company. This is a concept where heirs are able to stretch out how long an inherited IRA can last over their shorter lifespan … while the IRA owner does not this ability. True, the owner can stretch it as long as they live by only taking their Required Minimum Distribution … but the owner’s lifespan is typically shorter than the heir’s lifespan, so more must be withdrawn.
Heirs have a choice, to spend the inherited IRA, or not. But, they have to withdraw a minimal amount called the Required Minimum Distribution (RMD). IRA owners only need to choose (in writing on a designation form with the IRA company) a person, or people, as heirs and the Stretch IRA potential is automatically established.
It is up to each heir how long they are going to stretch it. They could stretch is for one day (spent as soon as they get it), or stretch is out over their lifetime.
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