An Individual Retirement Account (IRA) that allows a second generation beneficiary to make distributions based on the life expectancy of the first generation beneficiary. The first beneficiary has the option of taking distribution based on his/her life expectancy or that of the original owner. If the first beneficiary should die while taking distributions, the second beneficiary then has the option of taking distributions on the same life expectancy schedule as the first beneficiary. This means that he/she does not have to distribute as much. This extends the life of the IRA and lessens the amount of taxes owed as a result of the distributions.
Related information about extended IRA:
- Extended IRA Definition | Investopedia
An IRA that allows a second generation beneficiary to continue to distribute the assets over the life expectancy used by the first generation beneficiary, thereby ...
- Extended IRA | Retirement Dictionary
Mar 22, 2009 ... Definition. Also referred to as Stretch IRA® or Multi-Generational IRA. (The term Stretch IRA® is copyrighted by Wealth Advisory Group.
- What are Extended IRA Plans? | Money Manager
Aug 16, 2010 ... Extended IRA Plans, which are sometimes referred to as multi-generational IRA plans, are designed for use by individuals who do not want to ...
- Extended IRA - Financial Dictionary - The Free Dictionary
An IRA from which a second generation beneficiary receives funds after both the account holder and the first generation beneficiary have died. The second ...
- Extended IRA: Definition from Answers.com
Extended IRA An IRA that allows a second generation beneficiary to continue to distribute the assets over the life expectancy used by the first generation.
- Extended IRA- Family Offices Group
Extended IRA definition: An extended IRA includes the stretch IRA provision allowing multiple beneficiaries to enjoy distributions for an inherited IRA. See the ...
- Stretch IRA Provision- Family Offices Group
Extended IRA Family Office Definition: Extended IRA Extended IRA definition: An extended IRA includes the stretch IRA provision allowing multiple beneficiaries ...
- TIAA-CREF - Tax Savings Opportunities During the IRA Season
The 2011 extended IRA season – from January through April 17, 2012, may offer you opportunities to cut taxes and enhance your estate planning. In this article ...