Important: This article is general educational information, not tax or legal advice. Retirement account rules are technical and have deadlines and penalties. Talk to a CPA or tax attorney before taking or skipping a distribution.
Quick answer: Most non-spouse heirs who inherit an IRA from someone who died after 2019 must empty the account by the end of the tenth year after the owner’s death. If the owner had already reached their required beginning date for minimum distributions, the heir must generally also take annual required minimum distributions (RMDs) in years one through nine. Surviving spouses and a few other «eligible designated beneficiaries» have more flexible options.
What the 10-Year Rule Is
The SECURE Act of 2019 replaced the old «stretch IRA» for most beneficiaries with a 10-year payout period. Unless you are an eligible designated beneficiary, the account must be fully distributed by the end of the tenth year following the year of the owner’s death. IRS final regulations published on July 19, 2024 clarified how annual withdrawals work and take effect starting in 2025 (per Kiplinger and EisnerAmper; see Sources).
Do You Have to Take Annual Withdrawals?
| If the original owner died… | Rule for a 10-year-rule beneficiary |
|---|---|
| On or after their required beginning date (they had already started RMDs) | Take annual RMDs in years 1 to 9, and empty the account by the end of year 10 |
| Before their required beginning date | No annual RMDs required, but the account must be empty by the end of year 10 |
| Inherited Roth IRA | No annual RMDs required, but the 10-year deadline still applies |
The IRS waived penalties for missed annual RMDs from 2021 through 2024 while it finished the rules. That relief did not extend the 10-year deadline, so an account inherited from someone who died in 2020 still must be emptied by the end of 2030 (Spidell).
Who Is an Eligible Designated Beneficiary?
These beneficiaries are generally exempt from the 10-year rule and may spread distributions over their life expectancy:
- A surviving spouse
- A minor child of the account owner (the 10-year rule starts once the child reaches the age of majority, 21 under the final rules)
- A person who is disabled
- A person who is chronically ill
- A person not more than 10 years younger than the account owner
A surviving spouse often has the extra option to treat the account as their own. Ask a CPA which choice fits your age and needs.
How Withdrawals Are Taxed
- Traditional IRA: withdrawals are generally taxed as ordinary income to the beneficiary.
- Roth IRA: qualified withdrawals are generally tax-free, though the 10-year deadline applies.
- No step-up in basis: money in a traditional IRA is income in respect of a decedent and does not get the step-up. See Step-Up in Basis.
Spreading withdrawals over several years can help avoid pushing yourself into a higher tax bracket in one year. See Do You Pay Taxes on an Inheritance?
Steps After Inheriting an IRA
- Do not withdraw or roll over by default. A non-spouse beneficiary generally cannot roll an inherited IRA into their own IRA.
- Retitle it correctly. Ask the custodian to set up an inherited IRA in your name with the owner noted.
- Identify your category. Spouse, eligible designated beneficiary, or 10-year-rule beneficiary.
- Find out if the owner had started RMDs. This decides whether annual withdrawals are required.
- Check the year-of-death RMD. If the owner had not taken their RMD for the year of death, the beneficiary generally must take it.
- Make a payout plan with a CPA and set calendar reminders for each year.
Frequently Asked Questions
Can I wait until year 10 to take everything?
Only if the owner died before their required beginning date or if the account is a Roth. Otherwise annual RMDs apply.
Does the 10-year rule apply to a 401(k)?
Similar rules generally apply to inherited defined contribution plans, but plan terms can differ. Ask the plan administrator.
What if I miss a required distribution?
An excise tax can apply. Contact a CPA promptly to fix it and ask about penalty relief.
Does the owner’s estate tax affect this?
Retirement accounts count toward the estate for estate tax, and some states tax inheritances. See Federal Estate Tax Exemption 2026.
Keep Reading
- Does Life Insurance Go Through Probate?
- What Is Probate? How It Works Step by Step
- How to Avoid Probate: 7 Legal Strategies
- Revocable vs. Irrevocable Trust
How We Prepared This Article
We start with primary sources, such as IRS guidance and Treasury regulations, and compare them with reputable secondary publications. Rules are reviewed at least twice a year and whenever the law changes. This website is an educational publisher, not a law or CPA firm.
When to Get Professional Help
Talk to a CPA or financial advisor before your first withdrawal, especially if the account is large, the owner died after starting RMDs, or you are not sure which beneficiary category you fall into.
Sources
- IRS: Retirement topics, beneficiary
- Additional references consulted: Treasury Decision 10001 (final RMD regulations, July 2024), Kiplinger, EisnerAmper, and Spidell tax publications.
Last reviewed: October 5, 2026
Next review due: April 5, 2027
Disclaimer: This content is for general information only and is not tax or legal advice. Laws change. Consult a licensed CPA or attorney about your situation.