If you qualify, you may want to convert some or all of your
tax-deferred money into a Roth IRA. You'll have to pay income taxes on the
amount you convert, but it can be well worth it. (You can also set up a new Roth
IRA and make after-tax contributions to it.)
Unlike a traditional IRA that requires you to start taking your money out at 70
1/2, with a Roth IRA there are no required minimum distributions during your
lifetime. And, generally, after five years or age 59 1/2 (whichever is later),
all withdrawals will be income tax-free! So you can leave your money there,
growing tax-free, for as long as you wish.
You can stretch out a Roth IRA just like a regular IRA. After you die,
distributions will be paid over the actual life expectancy of your beneficiary.
Your spouse can even do a rollover and name a new beneficiary. And, all
distributions to your beneficiaries will be income tax-free!