Stretch IRA: Make An Inherited Retirement Account Last Longer

Let's say your dad worked hard and built a big traditional IRA. Now he wants to leave it to you and your brother and sister. You and your siblings can make the money last longer by creating what's called a stretch IRA, one for each of you and your siblings. If you don't take that planning step, you'll end up sending a lot of the money to Uncle Sam in the form of taxes.