Extended IRA

Business, Legal & Accounting Glossary

Definition: Extended IRA

Extended IRA

Full Definition of Extended IRA

An Individual Retirement Account (IRA) that allows a second generation beneficiary to make distributions based on the life expectancy of the first generation beneficiary. The first beneficiary has the option of taking distribution based on his/her life expectancy or that of the original owner. If the first beneficiary should die while taking distributions, the second beneficiary then has the option of taking distributions on the same life expectancy schedule as the first beneficiary. This means that he/she does not have to distribute as much. This extends the life of the IRA and lessens the amount of taxes owed as a result of the distributions.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Extended IRA. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
December 01, 2022 https://payrollheaven.com/define/extended-ira/.
Chicago Manual of Style (CMS):
Extended IRA. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/extended-ira/ (accessed: December 01, 2022).
American Psychological Association (APA):
Extended IRA. PayrollHeaven.com. Retrieved December 01, 2022
, from PayrollHeaven.com website: https://payrollheaven.com/define/extended-ira/

Definition Sources

Definitions for Extended IRA are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.