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  • Writer's pictureDavid H. Kinder, RFC®, ChFC®, CLU®

"The Government giveth and the Government taketh away"

Updated: Jan 18, 2023

PDF copy of article: <click here>

You might ask "What is a Stretch IRA"?

The "stretch" IRA was a way of growing an IRA to pass from generation to generation... while only using required minimum distributions to provide generational "wealth".

Why did the Government decide to end this?

It's quite simple really. They're spending too much money and they don't want retirement balances to grow too much without the Government getting "their cut". Besides, it's also easy to believe that "only RICH people can afford to stretch out their taxable IRA payments... so let's cut out that loophole for those 'rich' people."

This is an important lesson in planning with Government as your partner: You just never know when your "partner" is going to change the rules on you. After all, an IRA stands for Individual Retirement Arrangement (with the Government).

Remember this phrase: There ain't so such thing as a free lunch - especially when Government is your retirement savings "partner".



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