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The End of the Stretch IRA?

by on February 13, 2012

Not cool. Another family wealth-building tool about to be eliminated by tax hungry Washington.

The stretch IRA is so valuable an option because when the children or grandchildren are able to inherit the IRA, their age and current life expectancy will push back paying the taxes for a crazy amount of time. But this is about to all change, unless you contact your Washington, D.C. delegate and give them a piece of your mind and before they take a piece of your future net worth.

Under the new proposal unless the deceased person’s IRA is converted fully to a Roth, no more stretch. Thus, if your parents or grandparents left an IRA to you, the entire amount of the IRA would have to be received within five years of the death and 100 percent of the income taxes will be due and payable. This really stinks. Currently, most IRAs are taxed when money is taken out of the IRA wrapper and at age 70-and-a-half the owner is forced to remove money and thus forced to pay taxes. Pushing back the requirement to take money out of the IRA wrapper is the key to having your money explode to the upside due to the phenomenal power of compounding interest.

http://www.lifehealthpro.com/2012/02/09/the-end-of-the-stretch-ira?utm_source=LifeHealthProDaily&utm_medium=eNL&utm_campaign=LifeHealthPro_eNLs

From → Taxes, Wealth

One Comment
  1. The republican tax bakres were paid for with borrow money. This artificially lowered the price of risk and creating a bubble prosperity while pushing the cost of the great and glorious Republican tax cuts onto the middle class tax payers. Now due to the artificially skewed and priced economy created by the Republican tax cuts, their uncontrolled spending and huge expansion of government, the economy is in shambles and the middle tax payers are having to pay more taxes and thus the Obama tax cut for the middle class to off set the higher taxes on the wealthy. The wealthy benefited far more than the middle class from the unjust Republican tax structure and should have to pay for the mess they benefited from and the debt created by the Republicans. The collapsing economy is proof that Republican economic values are bankrupt and nothing more than fantasy. It took the great and glorious Republican party 12 years (Bush 1 and 2) to destroy the economy and it’s going to take years to work though it and many decades to pay off the debt. This week’s jobs report will mostly likely be the worse in 26 years.

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