Over how many generations can an IRA be ‘stretched’
Is there an unlimited number of generations that an IRA can be passed on to, or is there a point at which the IRS says a beneficiary IRA must be liquidated upon a the death of a beneifiary IRA owner?
Permalink Submitted by Alan - IRA critic on Fri, 2014-03-07 20:24
There is no limit on generations other than the usual beneficiary RMD rules. The longest stretches would be for much younger spousal beneficiaries who could assume ownership and it might be decades before a non spousal beneficiary even inherits the IRA. Once a non spousal beneficiary inherits, if they are much younger their life expectancy would also be long, but regardless of how many more beneficiaries succeed the first non spouse beneficiary the IRA cannot last longer than the original non spousal beneficiary life expectancy.