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Stretch IRA

When: 3/15/2010 6:00 PM to 8:00 PM
Where: 333 City Blvd W, Orange CA 92868
Description: Attorney Brad Barth, CPA Amanda Han and uDirect President Kaaren Hall will discuss the "Stretch IRA"

Stretch Your IRA

A Stretch IRA is a term commonly used to describe an IRA established to extend the period of tax-deferred earnings, typically over multiple generations.In the short run, you can use the concept to reduce the required withdrawal you must take from the account if you're retired or at least age 70 1/2, and you'll cut your current income tax bill as well.

Meanwhile, because you are extending the IRA payout until your grandchildren retire (or further, if appropriate), you get substantial additional deferral years to compound the earnings growth. All of this becomes possible thanks to rules a few years ago that simplified distribution rules for qualified plans and IRAs.

These rules:

* Provide a uniform table to determine lifetime required minimum distributions regardless of age.

* Permit a beneficiary to be determined up to the end of the year following the death of the primary owner.

* Allow the normal life expectancy that would apply at the time of death to be taken into account in the calculation of post-death minimum distributions.

The rules let you determine your minimum distribution each year, based on your current age and account balance. The new distribution schedule is based on the joint life expectancies of you and a survivor who's at least 10 years younger. It assumes that both begin receiving distributions beginning at age 70. These new rules also allow you to determine your beneficiary up to your death, and to select a beneficiary more than 10 years younger than you. These moves are what combine to reduce current minimum distribution requirements and extend the deferral period.

To learn more about the "Stretch IRA" talk to your CPA or tax professional and see what makes the most sense for your overall retirement plan.

Join us for this informative evening -

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