Hi Lee Phillips again. Yeah I’m a lawyer don’t hold that against me. I want to talk about stretching an IRA for a minute and I’ve done other YouTube’s on stretching IRAs The SECURE Act that came into existence in December of 2019 President Trump signed it changed a lot of things and one of the things was your ability to stretch an IRA. We used to make it so that we could leave the IRA to the kids and it would stretch well now basically we have a 10 year limit on the amount of time that we can leave the money in the IRA and stretch that I’ve done another YouTube on that generally but I wanted to follow up with another thing and that is stretching an IRA for a spouse Now if you leave your IRA to your spouse have them be the beneficiary they can still–even under the SECURE Act stretch that over their own lifetime and that’s cool because if they’re gonna live more than 10 years they get the advantage of having it in the IRA longer than the general, your kids or
somebody else could have it in the IRA. So if they get it as a beneficiary and they stretch it they can leave it in the IRA over their lifetime and it will grow in this tax-free environment if it’s a Roth or at least the tax deferred environment
if it’s a standard IRA and like I say that that’s a big deal to be able to have money growing without the tax it’s huge people don’t understand how big that is I’ve got a YouTube on double a dollar 20 times I think that demonstrates how this tax is actually compound interest in reverse you’ve heard the 8th wonder of the world is compound interest well taxes are compound interest in reverse and people don’t understand that so leave it to the spouse let them stretch it over their lifetime and then leave it to the kids and they will have another 10 years now under the new SECURE Act that they can leave it in the IRA and let it grow in this tax preferred environment. So manage your IRA as well teach your spouse, teach your kids that they don’t take the money out of the IRA they leave it in the IRA so that it can grow without the tax and that’s extremely significant. Now this is only for people dying after December 31st 2019 before that you can leave it to the kids and they can still stretch it over their lifetime but if you’re not dead yet then you got a problem. You have to deal with the SECURE Act so Lee Phillips talking about a spouse being able to stretch an IRA.