stretch IRA


An Individual Retirement Account strategy designed to prolong or "stretch" the period of time over which earnings can be tax deferred. This strategy is used when an investor does not need all of the funds from the retirement account, and wishes to create an estate that can extend for generations. Beneficiaries will still need to take the required minimum distributions.

Use stretch IRA in a sentence

It was a stretch ira and I knew that the whole goal of that was to give them a longer period of time to work with.

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Since they were well off, they decided to move towards a stretch IRA so they would not be hit with all taxes right now.

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Based on his age and the size of his family, a stretch IRA would be the best option to ensure loved ones of a good head start in their investments.

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