Introducing
The Family Stretch IRA
In January, 2001 the IRS issued new rules governing the distribution
phase of IRAs. One of the powerful planning features of the
new 2001 rules is that IRA owners are now permitted to take
smaller Minimum Required Distributions (MRD). By postponing
distributions until Age 70½ , the Required Beginning Date (RBD),
IRA benefits can now be stretched over a longer period of time,
reducing current income taxes and increasing the long-term benefits
to family members. In other words, as the family grows, so does
the total value of the IRA.
A
Simple Concept, a
Dramatic Result
The idea behind the Family Stretch IRA is simply this - the
longer you are able to "stretch" IRA distributions, the larger
the account grows. Combine the power of compound interest
with tax-deferred growth.over multiple generations.using Guaranteed
Principal vehicles.to produce a Family Legacy. By stretching
IRA distributions over the lives of the owner, spouse, children
and grandchildren, you can maximize the power of tax-deferred
earnings, creating a long-lasting guaranteed stream of income
for the family. The Family Stretch IRA can turn a modest IRA
into a substantial amount.
Maximizing
Tax Deferral:
Stretching IRA Distributions to
Children & Grandchildren
Perhaps the most exciting planning opportunity under the 2001
IRA rules is the ability to "stretch" IRA distributions over
the individual life expectancies of children and grandchildren.
Under the new rules, an IRA owner can establish a plan that
enables multiple generations to take advantage of tax-deferred
growth for Inherited IRA's. IRA benefits left to younger beneficiaries
can grow substantial amounts over time. This planning technique
allows you to create a "Family Legacy".
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