Subscribe to AFM

Subscribe to AllFinancialMatters
by Email

All Financial Matters

Promote Your Page Too

The American's Creed

Site Sponsors

Books I Recommend

AFM in the Media

Money Magazine May 2008

Real Simple March 2008

Blogroll (Daily Reads)

« | Main | »

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.