How long do I have to withdraw an inherited IRA?

Most non-spouse beneficiaries must fully withdraw an inherited IRA within 10 years of the account owner's death. This is the 10-year rule established by the SECURE Act. If the original owner had already started required minimum distributions (reached age 73), you must also take annual RMDs in years 1–9, with the full remaining balance due by the end of year 10.

Who qualifies for the stretch IRA instead of the 10-year rule?

Eligible Designated Beneficiaries (EDBs) can stretch distributions over their own life expectancy instead of using the 10-year rule. EDB categories are: surviving spouse, minor child of the deceased (until age 21), disabled individual, chronically ill individual, and a person not more than 10 years younger than the deceased.

What are the inherited IRA RMD rules for a surviving spouse?

A surviving spouse has more options than other beneficiaries. They can roll the inherited IRA into their own IRA (delaying RMDs until they reach 73), treat the inherited IRA as their own, or take life expectancy distributions as an EDB. The rollover option is generally the most tax-efficient unless the surviving spouse needs access to funds before 59½.

What happens if I miss a required distribution from an inherited IRA?

The penalty for missing an inherited IRA RMD is 25% of the amount you should have withdrawn, reduced to 10% if corrected within two years. The IRS waived inherited IRA RMD penalties for 2021–2024 due to SECURE Act confusion; penalties resumed fully in 2025.

Is an inherited Roth IRA subject to the 10-year rule?

Yes. Non-spouse beneficiaries inherit Roth IRAs under the same 10-year rule as traditional IRAs. However, distributions from an inherited Roth IRA are generally tax-free (provided the Roth account was held for at least 5 years). Annual RMDs during years 1–9 still apply if the original owner had reached their required beginning date.

Can a trust be named as an IRA beneficiary?

Yes. A trust can inherit an IRA, but the 10-year rule applies unless all trust beneficiaries qualify as EDBs. Trusts that qualify as 'see-through trusts' allow distributions to be paid to individual beneficiaries and may allow stretch treatment if those individuals are EDBs. Trust-inherited IRAs require careful tax planning.

IRA Beneficiary Calculator 2026 — Inherited IRA Required Distributions

Most non-spouse beneficiaries who inherit an IRA in 2026 must withdraw the entire balance within 10 years of the account owner’s death. If the original owner had already begun required minimum distributions (i.e., had reached age 73), you must also take annual distributions in years 1–9 of the 10-year window, based on your own life expectancy. A surviving spouse has broader options, including rolling the account into their own IRA.

Beneficiary Types: 10-Year Rule vs. Stretch

The SECURE Act created two categories of beneficiaries with very different distribution rules.

Eligible Designated Beneficiaries (EDBs) — Can Stretch

EDBs may take distributions over their own life expectancy using the IRS Single Life Table:

EDB Category	Notes
Surviving spouse	Most flexible — can roll to own IRA
Minor child of the deceased	Stretch until age 21, then 10-year rule begins
Disabled individual	Must meet IRS disability definition
Chronically ill individual	Must meet IRS definition
Person ≤10 years younger than deceased	Sibling, friend, partner within 10-year age gap

Non-Eligible Designated Beneficiaries (NEDBs) — 10-Year Rule

All other beneficiaries — including adult children, grandchildren, siblings (more than 10 years younger), and non-spousal partners — must empty the account by December 31 of the 10th year after the year of death.

The Critical Two-Scenario Split Under the 10-Year Rule

Whether you must take annual RMDs in years 1–9 depends on whether the original owner had reached their Required Beginning Date (RBD).

Original Owner Status	Annual RMDs in Years 1–9?	Year 10 Requirement
Died before RBD (before age 73)	No — any schedule, any amount	Full balance by end of year 10
Died on or after RBD (at/after age 73)	Yes — based on your life expectancy	Full remaining balance by end of year 10

Calculating Your Annual RMD as an EDB or Post-RBD NEDB

Annual RMD = Inherited IRA balance (Dec 31 prior year) ÷ Life expectancy factor

Use the IRS Single Life Table (Table I in Publication 590-B), starting with your age in the year after the owner’s death, and reduce the factor by 1 each subsequent year.

2026 IRS Single Life Expectancy Factors (selected ages):

Your Age	Life Expectancy Factor
30	55.3
35	50.5
40	45.7
45	41.0
50	36.2
55	31.6
60	27.0
65	22.9
70	18.9

Worked Example: Non-Spouse Beneficiary, Original Owner Died After RBD

Situation: Claire, age 45, inherits a $300,000 traditional IRA from her father, who passed at age 80 (after his RBD). Claire must take annual RMDs in years 1–9 and clear the balance by year 10.

Year	Claire’s Age	Year-Start Balance	Life Expectancy Factor	RMD
1 (2026)	45	$300,000	41.0	$7,317
2 (2027)	46	~$314,000*	40.0	$7,850
3 (2028)	47	~$328,000*	39.0	$8,410
5 (2030)	49	~$356,000*	37.0	$9,622
10 (2035)	54	Remaining balance	—	Full withdrawal

Assumes 7% growth on remaining balance after each annual RMD.

Total taxable income over 10 years is the full $300,000 plus any growth. Spreading distributions strategically — taking more in years when income is lower — can reduce the overall tax burden.

Worked Example: Original Owner Died Before RBD (More Flexibility)

Situation: Marcus, age 38, inherits a $200,000 IRA from his aunt, who passed at age 68 (before her RBD at 73). Marcus has no annual RMD requirement — he can withdraw any amount in any year, as long as the account is empty by December 31, 2035.

Tax planning strategy: If Marcus is in the 22% bracket now but expects lower income in years 6–10, he might choose to:

Years 1–5: withdraw $10,000/year (staying in 22% bracket)
Years 6–10: withdraw larger amounts in lower-income years

Surviving Spouse Options — The Most Flexible Rules

A surviving spouse has three choices:

Option	Best When	Key Benefit
Roll into own IRA	Under 59½ and won’t need access soon	Delays RMDs until you reach 73
Treat as own IRA	Same situation	Identical to rollover
Keep as inherited IRA (EDB stretch)	Under 59½ and need access before 73	Access before 59½ without 10% penalty

The inherited IRA option is particularly valuable for a surviving spouse under age 59½ who needs funds before their own IRA could be accessed penalty-free.

Inherited Roth IRA: Same Rules, Better Tax Treatment

Non-spouse Roth IRA beneficiaries follow the same 10-year rule (and annual RMDs if original owner was past RBD). The critical difference: qualified distributions are tax-free. A $500,000 inherited Roth IRA cleared over 10 years generates $0 in federal income tax on the distributions (assuming the 5-year holding rule was met).

Annual RMD vs. Lump Sum: Tax Comparison

If Claire (from the example above) inherited $300,000 in the 22% bracket:

Approach	Strategy	Approx. Tax on Distributions
Lump sum year 1	$300,000 taxable in one year	Could push to 32–37% bracket — ~$90,000+ tax
10 equal payments	$30,000/year	Likely stays in 22% bracket — ~$66,000 tax
Optimize by income	Larger amounts in low-income years	Potentially $50,000–60,000 total tax

Spreading distributions over the full 10-year window is almost always better than taking a lump sum, unless you expect significantly higher tax rates in the future.

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy