Has there been either administrative action or legislative action since 1/1/2001?

Stretch IRA is a marketing concept used by fund families and brokerages to gather assets for inherited IRAs. It doesnt exist as an IRS rule. Under the regs the distribution period depends on whether the IRA owner dies before or after 70 1/2 and whether contingent benficaries were designated.

Agree. I get this all the time from brokers. If it helps, I just coincidentally came across this paragraph in Tax Facts (end of para 233):

Stretch IRA. The term "stretch IRA" does not appear in the Internal Revenue Code, but simply describes, in popular usage, the practice of IRA distribution planning that successfully permits the beneficiaries (e.g. surviving spouse and child of the owner) to receive distributions over their individual life expectancies under the foregoing rules, and the requirements for separate accounts.

See discussion at http://benefitslink.com/boards/index.php?showtopic=23098&hl