Stretch IRA

Do you already have your retirement taken care of?

Are you more concerned with the retirement future of your next generation of family members and loved ones? If these thoughts have run through your mind before, then you’re thinking ahead. Much like college funding and inheritance funding, retirement planning can be applied to those you love and treasure the most. Just ask one of our retirement plan consultants!

One way to do this is with a stretch IRA, which is a condition that can be added to your current retirement plan to allow your finances to develop and be passed onto generations, tax-deferred. Stretch IRAs can be added to plans such as Traditional, Roth SEP or SIMPLE IRAs. Our retirement planning company and financial consultants can help you figure out if a stretch IRA fits within your specific retirement goals, so call us at our Surprise, AZ office to learn more.

How Does a Stretch IRA Work?

Stretch IRAs can work like a safety net for the future retirement of your beneficiaries.

In order to set one up, you must first decide who will be your number one beneficiary. From there, your main beneficiary will then choose a second and third generation of beneficiaries.

No matter whom you choose to be your beneficiary, the main beneficiary must withdraw a certain amount of money each year, according to life expectancy charts and minimum distribution requirements. Therefore, your distributions can stretch and trickle down on to all of your beneficiaries in the future.

Let our retirement planning company help you get started. Talk to one of our retirement plan consultants to learn how to start a stretch IRA.


Pros & Cons Of A Stretch IRA?

There are some positive aspects to a stretch IRA, but like any investment option, there are also some risks involved in this sort of retirement planning. Here are some pros and cons of a stretch IRA plan:


  • It has the potential to provide a permanent income for your beneficiaries
  • It allows you to keep your assets within your circle of family & friends
  • The longer the stretch IRA grows, the more potential your beneficiaries have to collect a large sum


  • You or your beneficiaries may not reach your normal life expectancy
  • Tax laws always have the potential to change
  • Your investments might not pan out the way you want them to

A stretch IRA is a viable option for those who make it work with their retirement schedule. If you are interested in discovering more about stretch IRAs, talk to one of our financial consultants and we’ll get you up to speed with this type of retirement planning.