Extended IRA

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Extended IRA

An IRA from which a second generation beneficiary receives funds after both the account holder and the first generation beneficiary have died. The second generation beneficiary is the heir of the first generation beneficiary, who was the heir of the account holder. An IRA may be extended when the second generation beneficiary does not need or want to receive all the funds at once. This may be beneficial, as the second generation beneficiary retains all the tax benefits associated with the IRA.

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