A personal finance blog dedicated discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance.


Wednesday, February 23, 2005

Make Sure Your IRA Can be Stretched

I'm starting to call this my IRA Series. My reading of Ed Slott's books have got me all pumped up about the benefits of IRAs. I'm particulary interested in the stretch IRA.

If you want to stretch your IRA, it is important that you do three things, according to Slott. Those three things are:

1. Name a beneficiary - make sure you read his book about who or what makes the best beneficiary.

2. Make sure your IRA custodial agreements allow for the stretch. Although most firms allow for the stretch there are some that do not. There are also firms that do not even know what a stretch is.

3. Roll company plan funds like 401(k)s into an IRA as soon as you can so that you don't miss out on the opportunity to stretch your IRA.

Those are a few things to think about. I urge everyone to read Ed Slott's book to learn all about stretching IRAs. Your family will appreciate it.