Search


Subscribe to AFM


Subscribe to AllFinancialMatters
by Email

All Financial Matters

Promote Your Page Too

The American's Creed

Site Sponsors

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.

Comments