A Stretch IRA is not another special type of Individual Retirement Account. In fact, this is an approach to estate planning, which goal is to maximize the tax-deferred growth potential of the IRA assets by leaving them in the account for as long as the account holder and beneficiaries want and as long as the law permits. The approach being used for the stretch IRA does not allow large or lump-sum distributions to the IRA owner and his beneficiaries.
There are several types of IRA but let us look into the type most Americans opt to have – the Roth IRA. Several rules govern this type of account and most are from the IRA basics like contribution rules, and distribution rules.
Roth IRA contribution limits 2011 are very simple. Every working individual who receives salaries, wages, bonuses, professional fees and even tips can contribute to a Roth IRA account as long as they don’t exceed the income limits set for IRA filers.