Throughout Southern California
View Our Practice Areas

Stretch IRAs for Your Beneficiaries

This valuable estate-planning tool can help your beneficiaries make the most out of their inheritance but many investors do not know about these stretch provisions. This leaves retirees with the important question: Should they force their beneficiaries to stretch the inherited IRA?

What is a "stretch IRA" strategy? A recent Forbes article titled "Should I Force My Beneficiaries to Stretch My IRA?" discussed Stretch IRAs and their impact with two brothers, Wealth managers Tom and Robert Fross. In the article, Tom thought it best to leave beneficiaries the full range of IRA distribution options. Why? Because trying to manage from beyond the grave does not allow for flexibility or changing family circumstances. Robert agreed but feels it is important to educate beneficiaries and ensure that they comprehend the benefits of stretching distributions across their own lifetime rather than withdrawing money all at once.

Indeed, "stretch IRAs" can be a worthwhile vehicle to allow children to get a head start on their own retirement savings. With proper planning, an inherited IRA can grow from a modest amount into a great sum of money, the Fross brothers agreed. However, they cautioned that it is critical to take some steps now to set your heirs up for success later. Robert explained that only the IRA's named beneficiaries are able to leverage stretch provisions, so you must name your children or grandchildren as direct beneficiaries of the account, rather than indirectly as heirs in your will or beneficiaries of a trust. They also suggest working with an estate planning attorney to guarantee that the current custodian (e.g., bank, investment company, or insurance company) will allow beneficiaries to take advantage of an inherited IRA.

Also, educate your beneficiaries about inherited IRAs and make sure they understand the tax and financial advantages involved.

For more information, please visit my estate planning website.

No Comments

Leave a comment
Comment Information
Email Us For A Response

Find Out The Difference That Experience And Expertise Makes

Get the peace of mind that you deserve. First, attend a seminar. This will entitle you to a free initial consultation and a discounted estate planning fee. To learn more about our services or sign up for a seminar, contact us online or call us at 866-402-1805. We have offices in Torrance, Orange, Newport Beach, Pasadena and Woodland Hills.

Questions? Contact Us.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Call Now For A Free Consultation: 866-402-1805
  • ${site.data.firmName}${SEMFirmNameAlt}
  • Main Office: Torrance

    Torrance Office
    990 West 190th Street
    Suite 500
    Torrance, CA 90502

    Toll Free: 866-402-1805
    Map & Directions

    Orange Office
    333 City Boulevard West
    17th Floor
    Orange, CA 92660

    Toll Free: 866-402-1805
    Map & Directions

    Newport Beach Office
    5000 Birch Street
    Suite 8000
    Newport Beach, CA 92660

    Toll Free: 866-402-1805
    Map & Directions

    Pasadena Office
    790 East Colorado Boulevard
    9th Floor
    Pasadena, CA 91101

    Toll Free: 866-402-1805
    Map & Directions

    Woodland Hills Office
    5850 Canoga Avenue
    4th Floor
    Woodland Hills, CA 91367

    Toll Free: 866-402-1805
    Map & Directions

    Office map
Check out The Law Firm of Kavesh, Minor & Otis on Yelp
Check out Kavesh Minor & Otis on Yelp
Check out The Law Firm of Kavesh, Minor & Otis - Orange on Yelp
Check out The Law Firm of Kavesh Minor & Otis - Pasadena on Yelp