If you’ve inherited an individual retirement account (IRA) – traditional or Roth – it’s important to understand the RMD rules that apply to you.

For many families, inherited IRA planning became more complicated after 2019, when Congress passed the SECURE Act. Among other changes, the law largely eliminated the old “stretch IRA” approach for many nonspouse beneficiaries and replaced it with a 10-year distribution window – a shift that can accelerate taxes on inherited retirement assets and create surprise deadlines if you’re not paying close attention.¹

The “10-year rule” can often be misunderstood, so we’re breaking down the rules for IRAs inherited from someone who died after December 31, 2019. Here’s what you need to know.

What is the 10-year rule?

Most traditional IRA owners must begin taking annual RMDs from their account once they reach the required beginning date (RBD). Your RBD is:

• Age 73 if you were born in 1951 through 1959 or
• Age 75 if you were born in 1960 or later.

Excluding spouses and other so-called eligible designated beneficiaries, most beneficiaries of inherited IRAs must empty the account by December 31 of the 10th year after the original account owner’s death.² You may hear “10-year rule” and assume you can leave an inherited IRA untouched until the final year. But for many beneficiaries, that’s not necessarily the case.

If you inherited a traditional IRA, the rules depend on when the account owner died:

• If the account owner died on or after their RBD, most beneficiaries are required to take annual distributions during years one through nine.
• If the owner died before their RBD, annual distributions are generally not required. The beneficiary may take distributions at any pace, provided the account is empty by the end of the 10th year.

The table below shows a simplified way to think about it:

For an inherited Roth IRA, the 10-year deadline still applies, but annual RMDs are not required. Note that if the inherited Roth IRA had been opened for less than five years, withdrawals of earnings may be subject to tax, so it’s worth confirming with a tax professional before assuming that you have completely tax-free access to the money in an inherited Roth IRA.

Before you can transfer the IRA into a beneficiary or inherited IRA, there may be a separate requirement for the year of death. If the original owner was required to take an RMD and had not completed it before they died, the remaining amount must still be distributed for that year. In practice, many IRA custodians will require that the final year’s RMD be taken before they’ll allow a transfer to a beneficiary or inherited IRA.³ Usually the final-year RMD of the original account owner is paid to the beneficiary or beneficiaries of the IRA, not to the deceased’s estate.

This can be an easy item to overlook, especially when multiple family members are involved or the death occurred late in the year. However, the final year’s RMD can be taken through the end of the year after the original owner’s death without penalty. If the owner’s final RMD isn’t taken until the following year, the beneficiary may still have a separate obligation to take their own RMD based on the rules above.

IRS updates: Enforcement changes, missed RMD relief and penalties

After the passing of the SECURE Act, there was uncertainty (and subsequent IRS guidance) about whether certain beneficiaries needed to take annual RMDs in years one through nine when the original owner died on or after their RBD.⁴ Because of that uncertainty, coupled with the disruption of the COVID-19 pandemic, inherited IRA owners were not penalized if they did not take RMDs in 2021, 2022, 2023 or 2024.⁵

However, since 2025, RMDs have been required for affected beneficiaries. A distribution must be made in the calendar year it’s required, and any RMD for 2026 must be completed by December 31, 2026. A missed RMD may result in a 25% excise tax, which can be reduced to 10% when the shortfall is corrected within the applicable correction period (usually two years). The tax is generally reported on Form 5329.⁶

Because the consequences can be significant, it’s worth confirming each year whether a distribution is required – and, if so, that it’s taken correctly and on time.

Required minimum vs. smart withdrawal strategy

If you’re the owner of an inherited IRA, a good review goes beyond confirming the final 10-year deadline. It should also confirm the beneficiary, whether the original account owner completed their RMD for their year of death, whether you need to take a distribution for the year of inheritance and whether the current withdrawal approach still makes sense.

Determining whether that distribution is required is only the first step. It doesn’t answer how much you should withdraw this year or over the remaining distribution period.

A beneficiary who takes only the required minimum while the account continues to appreciate may be left with a substantial taxable balance near the end of the 10-year window. That distribution could be added to salary, business income, investment income or other retirement distributions in the same year.

Factors to weigh when choosing your withdrawal pace

A thoughtful withdrawal schedule should be considered alongside:

• Current and expected future income
• Retirement timing
• Bonuses, equity compensation or a planned asset sale that could result in a large capital gain
• State income taxes and any possible change in residency
• Medicare premium exposure

In some cases, automatically taking the smallest permitted amount can lead to a larger tax issue later. However, this doesn’t mean distributions should always be accelerated. For example, someone approaching retirement and expecting lower-income years ahead may decide to delay some withdrawals (when allowed), while someone in a temporary lower-income year may choose to withdraw more than required to reduce the risk of a large taxable spike in the 10th year.

And of course, if you need the money, you don’t have to wait until the 10th year to withdraw the entire balance – but it can still be wise to consider the value of tax-deferred growth before emptying the account.

Keep in mind that because IRA distributions increase modified adjusted gross income (MAGI), a distribution may affect future income-related Medicare premium surcharges. Medicare generally uses income from two years prior, so a distribution taken in 2026 could affect premiums in 2028.⁷

Rather than asking what must come out of the account this year, it can be helpful to ask yourself this: How should the remaining balance be distributed across the years that are left?

Inherited IRA rules depend on beneficiary status

Under the SECURE Act, inherited IRA rules aren’t the same for every beneficiary. Depending on the circumstances, a spouse may be able to roll the inherited assets into an IRA in their own name, remain a beneficiary or elect to be treated as the deceased owner for distribution purposes. A spouse under 59½ who may need the funds should think carefully before rolling the account into one in their own name because distribution rules and potential penalties can change based on how the account is treated.

Certain individuals are classified as eligible designated beneficiaries, including:

• A surviving spouse
• A minor child of the original owner
• A disabled or chronically ill individual
• An individual who is not more than 10 years younger than the original owner

These beneficiaries may be able to extend distributions for longer than 10 years. For example, a minor child of the original owner can take RMDs using their own life expectancy until they reach adulthood and generally becomes subject to the 10-year rule upon reaching age 21. Similarly, someone who is disabled or chronically ill can stretch distributions over their life expectancy; only if and when the disability or illness ends do they become subject to the 10-year rule.

An estate, charity or other beneficiary that is not an individual is not treated as a designated beneficiary. Different distribution rules can apply, and it may be worth consulting a lawyer or tax professional rather than assuming the 10-year rule applies.⁸

How a trust beneficiary changes the 10-year rule

Sometimes an IRA owner doesn’t leave the account directly to a person. Instead, they name a trust as the beneficiary. This is often done to add oversight or protection – like when the beneficiary is a minor, has special needs or might have creditor issues, or when the family situation is more complex (for example, a blended family).

When a trust inherits an IRA, the IRA often has to be emptied faster. In many cases, that can mean withdrawing the full IRA within five years of the original owner’s death. However, some trusts can qualify for special treatment as “see-through” trusts. If a trust qualifies, the IRA rules can be based on the actual people who benefit from the trust, rather than treating the trust like a nonperson entity. That can sometimes allow more favorable distribution rules.

To be a see-through trust, a trust has to be valid under state law; be or become irrevocable when the original grantor dies; have clear, identifiable human beneficiaries (not charities); and be given to the IRA custodian by October 31 of the year after the original owner’s death.

There are two kinds of see-through trusts, both of which require that distributions be made from the IRA to the trust:

• A conduit trust pays out all IRA distributions to its beneficiaries as they’re made.
• An accumulation trust can hold assets for the benefit of the trust’s beneficiaries.⁹

While an accumulation trust can give a beneficiary stronger creditor protection, for example, it usually comes at the cost of more income tax on the IRA distributions, since trusts reach the top income tax bracket beyond $16,000 of income (in 2026).¹⁰

6 questions to ask yourself after inheriting an IRA

Start with these questions to help determine your distribution requirements and the right withdrawal plan for your situation:

• When did the original owner die, and when does the distribution period end?
• Did the owner reach the required beginning date prior to their death?
• Is the account a traditional or Roth IRA?
• If applicable, was the owner's RMD completed in their year of death?
• Who or what is named as beneficiary?
• What does the beneficiary's income picture look like over the remaining distribution period?

The bottom line

The 10-year rule sets a deadline, but it doesn’t set a withdrawal strategy. A smart inherited IRA review typically confirms which rules apply (including any annual RMD requirements), checks for a year-of-death RMD, and then maps withdrawals across the remaining years in a way that aligns with taxes, Medicare considerations and your broader financial plan.

A financial professional can help you review your personal situation, understand which rules apply to you and establish a withdrawal strategy that incorporates your full financial picture.