Inheriting a retirement account can be emotionally and financially complicated. A beneficiary may be dealing with the loss of a parent, spouse, sibling, or other loved one while also facing a set of tax rules that look very different from the rules that applied to the original account owner.
For many people who inherit an IRA after 2019, the central rule is the inherited IRA 10-year rule. But “empty the account within 10 years” is only the starting point. Depending on who inherited the account and whether the original owner had already reached the required beginning date for distributions, annual withdrawals may also be required before year 10.
What Is the Inherited IRA 10-Year Rule?
Under the SECURE Act rules that generally apply to deaths after 2019, many non-spouse individual beneficiaries must fully distribute an inherited IRA by December 31 of the year containing the 10th anniversary of the original owner’s death.
For example, if an IRA owner dies in 2026 and the beneficiary is subject to the 10-year rule, the inherited account generally must be emptied by December 31, 2036. The beneficiary may be able to spread withdrawals across the period instead of taking everything immediately.
The Key Question: Did the Owner Die Before or After the Required Beginning Date?
This distinction matters because the 10-year deadline does not always mean the beneficiary can wait until the last year.
| Original Owner’s Status | Typical Rule for a Non-Eligible Designated Beneficiary | Planning Implication |
| Died before required beginning date | Account generally must be empty by year 10; no annual distribution is generally required before year 10 when the 10-year rule applies. | Beneficiary has flexibility over timing, but postponing everything can create a large final-year taxable withdrawal. |
| Died on or after required beginning date | Annual beneficiary RMDs generally continue during the 10-year period, and the remaining balance must still be distributed by the end of year 10. | Beneficiary needs both an annual RMD schedule and a year-10 depletion plan. |
Who Is an Eligible Designated Beneficiary?
The law creates exceptions for certain beneficiaries who may qualify for life-expectancy distributions rather than the standard 10-year treatment. The IRS lists eligible designated beneficiaries as:
A surviving spouse of the account owner.
A minor child of the deceased account owner, until the child reaches the age of majority under the applicable rules.
A disabled individual.
A chronically ill individual.
An individual who is not more than 10 years younger than the deceased account owner.
The details can become technical, especially when trusts, estates, multiple beneficiaries, disabled beneficiaries, or successor beneficiaries are involved. Those situations deserve individualized tax and legal guidance.
Surviving Spouses Have More Options
A surviving spouse often has choices that a non-spouse beneficiary does not. Depending on the circumstances, a spouse may keep the account as an inherited IRA, roll eligible assets into an IRA in the spouse’s own name, or elect other treatment permitted under the current RMD rules.
The best choice can depend on the spouse’s age, whether the deceased owner had begun RMDs, when the surviving spouse expects to need the money, creditor considerations, and other tax-planning factors. Do not automatically retitle or roll over an inherited account before understanding the consequences.
Non-Spouse Beneficiaries Usually Cannot Treat the IRA as Their Own
If you inherit a traditional IRA from someone other than your spouse, the IRS generally does not allow you to treat the inherited IRA as your own. You cannot make new contributions to it, and inherited IRA rollover rules are much more restrictive.
This is why the first administrative step after a death should be to contact the IRA custodian and establish the inherited account correctly rather than moving money casually into a personal IRA or bank account.
Inherited Traditional IRA Withdrawals Are Generally Taxable
Taxable distributions from a traditional inherited IRA are generally included in the beneficiary’s gross income. That makes withdrawal timing important. Taking a large distribution in one year may push more income into higher federal tax brackets, affect taxation of other income, or interact with Medicare income-related premiums for beneficiaries who are on Medicare.
The 10-year rule is therefore not only a deadline problem; it can become an income-planning problem. A beneficiary may want to compare a level withdrawal schedule with larger withdrawals in lower-income years, while still meeting any annual RMD requirements.
What About an Inherited Roth IRA?
Inherited Roth IRAs are also subject to beneficiary distribution rules even though the original Roth IRA owner did not have lifetime RMDs. Many non-spouse beneficiaries still face the 10-year deadline, but qualified Roth distributions are generally tax-free. Earnings can be taxable if the Roth IRA has not satisfied the applicable five-year rule.
Because the original Roth IRA owner has no lifetime required beginning date, annual distribution requirements during years 1 through 9 can differ from inherited traditional IRA situations. Verify the rule that applies to your specific inherited Roth before assuming you must—or should—withdraw annually.
Common Inherited IRA Mistakes
Waiting until year 10 without checking annual RMD requirements. This can be a problem when the original owner died on or after the required beginning date.
Missing the year-of-death RMD. If the original owner had an RMD due for the year of death and had not fully taken it, beneficiaries may be responsible for completing it.
Moving inherited funds into the wrong account. Non-spouse inherited IRAs generally cannot be rolled into the beneficiary’s own IRA.
Assuming all beneficiaries have the same rule. Spouses, eligible designated beneficiaries, trusts, estates, and ordinary designated beneficiaries can have different options.
Taking a lump sum before considering taxes. An immediate payout may be simple, but it can produce a much larger taxable-income event.
Forgetting to update your own beneficiary designation. An inherited account should also have a successor beneficiary named under the custodian’s procedures.
A Practical Beneficiary Checklist
Confirm the date of death and the original owner’s age.
Determine whether the owner had reached the required beginning date for RMDs.
Ask the custodian whether the year-of-death RMD was fully satisfied.
Confirm your beneficiary classification: spouse, eligible designated beneficiary, designated beneficiary, trust, estate, or other entity.
Open or retitle the inherited account correctly before moving assets.
Ask whether annual RMDs apply during the 10-year period.
Map the year-10 deadline and compare several withdrawal schedules.
Coordinate IRA withdrawals with your tax return, Social Security, Medicare, and other income sources.
Review successor beneficiaries and estate documents after the account is established.
How This Fits With Broader Retirement and Estate Planning
The inherited IRA rules sit at the intersection of retirement planning and estate planning. Financial Literacy Advocates already provides educational material on Required Minimum Distributions and wills and trusts in financial planning. An inherited retirement account is where those two subjects often meet.
Families can reduce confusion by keeping beneficiary designations current, documenting where accounts are held, and making sure heirs know whom to contact. A will does not automatically override the beneficiary form on a retirement account, so coordination matters.
Turn the 10-Year Deadline Into a 10-Year Plan
An inherited IRA should not be treated as a countdown clock with one date circled at the end. The better approach is to identify the beneficiary category, determine whether annual RMDs apply, understand the tax character of the account, and build a withdrawal schedule that fits the beneficiary’s broader financial picture.
For more educational retirement resources, review Financial Literacy Advocates’ financial education seminars and current retirement-planning articles.
Suggested Internal Links
• Required Minimum Distributions — Natural supporting article for annual RMD concepts and deadlines.
• wills and trusts in financial planning — Connects inherited retirement accounts to estate-planning education.
• financial education seminars — Moves readers toward the nonprofit’s educational workshop calendar.
Authoritative References
• IRS Publication 590-B — Distributions from Individual Retirement Arrangements
• IRS — Retirement Topics: Beneficiary
• IRS — Retirement Plan and IRA Required Minimum Distribution FAQs
Educational disclaimer: This article is for general financial education only and is not individualized tax, legal, investment, Medicare, or insurance advice. Rules can vary by account type and personal circumstances. Confirm current requirements with the IRS, Medicare, Social Security, your plan administrator, and qualified tax, legal, or financial professionals before acting.
FAQ: Inherited IRA 10-Year Rule
Do I have to take money from an inherited IRA every year?
Not always. If the original owner died before the required beginning date and the 10-year rule applies, annual withdrawals generally are not required before the 10th year. If the owner died on or after the required beginning date, annual beneficiary RMDs generally apply while the account must still be emptied by the end of year 10.
Can I wait until year 10 and withdraw everything at once?
Only if annual RMD rules do not require earlier distributions. Even when permitted, waiting can create a very large taxable distribution in the final year. Compare the tax effects before choosing that strategy.
Can a non-spouse beneficiary roll an inherited IRA into a personal IRA?
Generally no. Non-spouse beneficiaries usually must keep the assets in a properly titled inherited IRA and follow the beneficiary distribution rules rather than treating the account as their own.