Charitable Remainder Trust: The Stretch IRA Alternative

The SECURE Act killed the stretch IRA, but a properly constructed charitable remainder trust can deliver similar benefits, with some caveats.

An older couple stretch while sitting on exercise mats in a park.
(Image credit: Getty Images)

You may have heard about it before. The "stretch IRA" was a popular estate planning tool embraced by people who sought to leave a financial legacy to their heirs in a tax-efficient manner. This strategy allowed beneficiaries of an IRA to prolong the inherited funds by withdrawing only the required minimum distributions (RMDs) annually. This had the potential to leave a large sum within the IRA, enabling beneficiaries to enjoy the tax-deferred growth of inherited retirement funds over their lifetimes.

Death and taxes: The end of the stretch IRA

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Brandon Mather, CFP®, CEPA, ChFEBC®
Wealth Enhancement Group

Brandon Mather joined Wealth Enhancement Group in 2023. Prior to joining the Gensler Team, he gained experience and insight in financial services while working in a variety of positions within the industry since 2009. Over this time, Brandon has developed a passion for the market, sales and business development, along with the ability to establish and maintain lifelong business relationships.