Before moving on, respond to the following question by selecting the best answer:

4. Use of a stretch IRA in the case of John and Mary Stevens would have what general tax consequence?
   1. Income taxes are avoided on all future distributions, and the assets are removed from John and Mary's estate.
   2. Income taxes are avoided on future distributions to John and Mary but are payable on distributions to subsequent heirs, and the assets are removed from John and Mary's estate.
   3. Income tax deferral is extended by reducing the amount distributed while John and Mary are alive, and the assets are removed from John and Mary's estate.
   4. Income tax deferral is extended by reducing the amount distributed while John and Mary are alive, but doing so adds to the value of John and Mary's gross estate.

Back to Top | Next

Ohio National is not affiliated with, nor does it endorse or sponsor, any particular prospecting, marketing or selling system.

158