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Stretch That IRA – An Example

By JLP | September 11, 2005

Here’s an example of what a stretch IRA looks like.

Last week, I talked about how to calculate the Required Minimum Distribution on an inherited IRA. This week I want to show you even a small IRA can mean millions of dollars in additional income to a beneficiary.

For this example, I used the following inputs:

Topics: IRAs | 1 Comment »


One Response to “Stretch That IRA – An Example”

  1. Dave Dodson Says:
    September 23rd, 2005 at 2:57 pm

    The results are even more incredible if you take the RMD at the end of the year, after it also has earned that 10% rate of return, rather than at the beginning of the year as done in the table. My spreadsheet shows that the account balance maxes out at $657,000 at age 73 instead of $564,000 at age 72, and the total distributions are $1,799,629 instead of $1,416,266.

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