Inherited IRA 10-Year Rule: RMD Timing, Exceptions, and Planning Questions
An educational guide to the inherited IRA 10-year rule, annual RMD timing, eligible-designated-beneficiary exceptions, inherited Roth IRAs, and planning questions to review after an account owner's death.
In this article
Many inherited IRAs must be distributed within 10 years of the owner's death. Whether annual distributions are also required depends on the owner's status, beneficiary category, and account type. Review the rules before deciding when to take a distribution.
What Is the Inherited IRA 10-Year Rule?
The 10-year rule generally applies to a non-spouse designated beneficiary who inherited an IRA from an owner who died in 2020 or later and who is not an eligible designated beneficiary. Under the rule, the inherited IRA generally must be fully distributed by December 31 of the 10th calendar year following the year of death.
That deadline is not necessarily a recommendation to wait until year 10. Distributions from a traditional inherited IRA are generally included in taxable income. Taking all distributions in one year could concentrate income, while taking them too quickly could have different tax and cash-flow consequences. The appropriate pace depends on the beneficiary's income, deductions, other distributions, and broader planning circumstances.
The IRS's Publication 590-B provides the governing beneficiary distribution framework. The final RMD regulations generally apply to distribution calendar years beginning in 2025, following prior transition relief for certain missed beneficiary RMDs.
Are Annual RMDs Required During Years One Through Nine?
The answer often turns on whether the original owner died before or on or after their required beginning date (RBD). For many traditional IRA owners today, the RBD is April 1 following the calendar year in which they turn 73. An owner who dies after turning 73 but before that April 1 date is generally treated as having died before the RBD.
| Original owner's status at death | Annual beneficiary RMDs in years 1-9 | Year-10 requirement |
|---|---|---|
| Died before the RBD | Generally not required under the 10-year rule | The account generally must be fully distributed by December 31 of year 10 |
| Died on or after the RBD | Generally required, using the applicable life-expectancy method | The remaining account balance generally must also be fully distributed by December 31 of year 10 |
An annual RMD is a minimum distribution, not a schedule that automatically empties the account. A beneficiary may distribute more than the minimum, but the full account must still be distributed by the applicable deadline. Taking more in one year does not necessarily remove a later annual-RMD obligation.
A separate distribution may be due for the year of the owner's death. If the owner had reached the required beginning date and had not taken the full RMD for that year before death, the beneficiary may need to complete that distribution. The account's records and custodian guidance can help confirm what remains due.
Who Is an Eligible Designated Beneficiary?
Some beneficiaries are not subject to the standard 10-year framework in the same way. The IRS identifies several categories of eligible designated beneficiaries:
- A surviving spouse
- The original owner's minor child, until the child reaches the applicable age of majority
- A disabled individual
- A chronically ill individual
- An individual who is not more than 10 years younger than the original owner
These classifications have technical definitions and can affect the distribution method and timing. A surviving spouse may have options that are not available to other beneficiaries, including treating an inherited IRA differently from a non-spouse beneficiary. Trust provisions, multiple beneficiaries, and successor beneficiaries can also change the analysis. This is an area where the beneficiary designation and account paperwork matter as much as the account balance.
Inherited Roth IRAs Follow a Different Pattern
An inherited Roth IRA can still be subject to the 10-year deadline, but the original Roth IRA owner has no lifetime RBD. As a result, a typical non-eligible designated beneficiary subject to the 10-year rule generally does not have annual RMDs during years one through nine. The account generally must still be emptied by the end of year 10.
Inherited Roth IRA distributions are generally tax-free when the original owner's Roth IRA satisfied the five-year holding period. If that period had not been met, earnings may be taxable. The absence of annual RMDs does not make timing irrelevant. A beneficiary may still need to coordinate withdrawals with liquidity needs, estate administration, and other tax decisions.
Five Planning Questions to Review Before Taking a Distribution
1. When did the original owner die?
Deaths before 2020, deaths in 2020 or later, and successor-beneficiary situations may follow different rules. Start by confirming the date of death and whether this is the first inherited account or an account inherited from a prior beneficiary.
2. Had the original owner reached the required beginning date?
This determines whether annual RMDs may be required during the 10-year period. The answer is not always the owner's age alone, because the RBD is defined by a separate date rule.
3. What kind of beneficiary is involved?
A spouse, minor child, disabled or chronically ill beneficiary, or beneficiary close in age to the original owner may be treated differently. Do not assume the standard 10-year rule applies without first confirming the beneficiary category.
4. Is the account traditional or Roth?
Both account type and distribution timing can affect the tax discussion. A coordinated review can help clarify how inherited-account distributions fit alongside wages, retirement income, charitable giving, and other taxable events. Tax results vary, and a distribution should not be assumed to produce a particular result.
5. Are there other deadlines or documents to review?
Beneficiary forms, trust documents, the custodian's account records, prior-year distribution history, and estate-administration deadlines may all matter. Keeping these records together can reduce the risk of acting on an incomplete set of facts.
How an Inherited IRA Fits Into a Coordinated Plan
An inherited IRA is rarely an isolated tax question. Distribution timing may intersect with retirement-income planning, charitable intentions, a future Roth conversion analysis, or a household's expected income over several years. These decisions have trade-offs, and the applicable rules can be complex.
For households approaching retirement, our guide to managing taxes between career income and RMDs explains why distribution timing often deserves a broader look. Our Roth conversion window guide discusses related income-planning considerations. You can also learn more about United Financial Planning Group's retirement planning and tax planning services.
Key Takeaway
The inherited IRA 10-year rule creates a firm end-date for many beneficiaries, but it does not create a one-size-fits-all withdrawal schedule. Confirm the owner's date of death and RBD status, the beneficiary category, the account type, and the available documentation before deciding how distributions fit into the years ahead.
Sources
- IRS Publication 590-B, Distributions from Individual Retirement Arrangements
- IRS Retirement Topics: Beneficiary
- IRS Notice 2024-35
- Treasury Decision 10001, Required Minimum Distributions
Sources reviewed September 22, 2026. Tax rules can change. This article is educational and is not personalized tax, legal, or financial advice.
Frequently Asked Questions
- Does the inherited IRA 10-year rule require distributions every year?
- Not in every case. For many non-spouse designated beneficiaries, annual RMDs generally apply during years one through nine when the original owner died on or after the required beginning date. When the owner died before that date, annual distributions are generally not required, but the account generally must still be fully distributed by the end of year 10.
- When does the 10-year period for an inherited IRA end?
- For an account subject to the 10-year rule, the inherited IRA generally must be fully distributed by December 31 of the 10th calendar year after the original owner's death.
- Are spouses subject to the same inherited IRA 10-year rule?
- A surviving spouse may have options that differ from those available to a non-spouse beneficiary. The appropriate approach depends on the account, beneficiary designation, age, and other facts.
- Do inherited Roth IRAs have annual RMDs during the 10-year period?
- A typical non-eligible designated beneficiary subject to the 10-year rule generally does not have annual RMDs in years one through nine for an inherited Roth IRA, but the account generally must still be fully distributed by the end of year 10.
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