A qualified IRA trust allows your individual retirement funds to “flow” through a special Trust to assure monies are paid to beneficiaries over their respective lifetimes. This trust is designed so that the beneficiary is entitled to withdraw from the trust only the minimum required distribution under the Internal Revenue Code. And, if certain provisions are elected, the beneficiary can also elect to receive additional payments if he really needs the money earlier. If the beneficiary does not need the money earlier, the money stays in for his or her life expectancy.
Other terms for what the qualified IRA trusts are: “stretch IRA” or a “multi-generational IRA.” The stretch IRA allows designated beneficiaries to receive distributions over their life expectancy. There is a considerable economic advantage to using the stretch IRA.
Make a Payment
