Stretch IRA

A stretch IRA was an estate planning strategy that extends the tax-deferred status of an inherited IRA when it is passed to a non-spouse beneficiary. It allowed for continued tax-deferred growth of an Individual Retirement Account (IRA). The SECURE Act, part of the spending bills passed by the Senate on Dec. 19, 2019, and signed into law on Dec. 20 by President Donald Trump, ended the ability to use stretch IRAs. This will change estate planning for many taxpayers who employed this strategy to shelter inherited income. Here’s how the strategy worked—Read more at Investopedia. Kagan, Julia. “Stretch IRA.” 23 December 2019