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Take steps to stretch your IRA
4. Review account registrations with your heirs
The fourth step to stretch is to review account registrations with your
heirs. All of your planning could be for nothing if they don't know what to
do when they inherit your IRA assets. It's important that your name as IRA
owner stay in the account registration, as shown in the example below. The
wrong registration could mean forfeiting the account's ability to stretch.
The following example shows how the custodian should register the account.
You also want to make certain that your beneficiaries are clear on what has
to happen when they inherit your IRA assets. Provide them with copies of your
IRA applications and forms so at the time of your death, they have the necessary
documentation to inherit your IRA.
It makes sense to sit down with your financial advisor at least annually to
go over your beneficiary designations. Your situation could change and you
might want to designate new beneficiaries. Was there a divorce or death in
the family or possibly an addition such as a child or grandchild? With the help
of your financial advisor, you can continue to implement the stretch strategy
for the benefit of your heirs.
Read more about how to stretch your IRA:
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