Timothy Sumer

Sub Headline: Stretch IRAs Can Accomplish Double Duty for Your Retirement & Beneficiaries Synopsis: Individual Retirement Accounts (IRAs) have been around for more than 40 years through the Employee Retirement Income Security Act or ERISA. It’s a tax-deductible contribution plan that accumulates tax-deferred and is generally used for taxable retirement income. But there may be additional tax-advantaged distribution options that may benefit retirees as well as their beneficiaries. Content: IRAs accumulate tax-deferred, but not forever. Mandatory distributions come in to play at age 70½, where required minimum distributions (RMDs) or withdrawals are generated based on the Uniform Lifetime Table. Uncle Sam wants his due in taxes and RMDs are his way of extracting those taxes from your retirement plan. If distributions aren’t large enough, or if distributions are not made at all, a penalty tax of 50 percent of the amount that should have been distributed is generally asse...