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Election to Stretch an IRA DISCLOSURE STATEMENT This document is intended only to provide general information. EquiTrust Life Insurance Company does not provide tax or legal advice. It is important.

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The stretch IRA is gone The stretch IRA preserved the tax-deferred status of an inherited IRA for most non-spouse beneficiaries.

Generally, a designated beneficiary is required to liquidate the account by the end of the 10th year following the year of death of the IRA owner (this is known as the 10-year rule).

While the SECURE Act included many positive reforms, such as allowing pooled employer plans, it also eliminated an important retirement tax and savings strategy: the stretch IRA.

Those tools include: Roth IRA (contributions and conversions) Life insurance. Irrevocable living trusts.

Assuming the trust qualifies as a “see-through” trust under IRS regulations, the inherited IRA will qualify for the stretch IRA based on the child's life expectancy. However, the minor child's status as an EDB ends at age 21, regardless of state law.

A stretch IRA can still be used to leave money to a dependent person, such as a minor child or a disabled person. The assets can provide a sum of money for living expenses with minimal taxes.

A stretch IRA is an estate planning strategy that extends the life of an Individual Retirement Account (IRA) by allowing the original beneficiary to distribute the assets to a designated second generation beneficiary.

With the passage of the SECURE Act, the stretch IRA is no longer permitted when the original account holder dies after Dec. 31, 2019.

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232
Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232