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Definition: Stretch IRA
IRA refers to Individual Retirement Account. Stretch Ira is not a different type of Individual Retirement Account but it is simply a new investment concept that allows to stretch the IRA over future generations. The stretch IRA is possible due to the concept called Required Minimum Distribution which makes it possible for the younger generation to get more money at a younger age. The younger the generation, the less is the Required Minimum Distribution and hence it allows the Individual Retirement Account to stretch further.