An IRA that allows a second generation beneficiary to continue to distribute the assets over the life expectancy used by the first generation beneficiary, thereby extending the IRA. An individual who inherits IRA assets from the original IRA owner is referred to as the first generation beneficiary. This individual is able to distribute the assets over his or her life expectancy or the remaining life expectancy of the IRA owner. If the first generation beneficiary subsequently dies, his or her designated beneficiary is the second generation beneficiary. This type of IRA is used by those who no longer need - or want - to spend all of their IRA assets at the same time. Extended IRAs can have extensive tax benefits because second generation beneficiaries are allowed to continue distributions over the life expectancy used by the first generation beneficiary, thereby spreading the tax burden from distributions over a long period.