Inherited IRA Rules 2026: The 10-Year Rule, Annual RMDs, and What to Do Now

The rules governing inherited IRAs changed dramatically with the SECURE Act (2019) and again with IRS final regulations in July 2024. If you recently inherited an IRA — or you're planning your estate and want to minimize the tax hit on your heirs — this guide explains which rules apply, what mistakes to avoid, and what decisions you face in the next 12 months.

Step 1: Determine your beneficiary category

Your distribution options depend entirely on your relationship to the deceased and whether you qualify as an "eligible designated beneficiary." Use the questions below to identify your situation.

The rules at a glance

Required beginning date (RBD): April 1 of the year following the year the owner turned age 73 (born 1951–1959) or age 75 (born 1960 or later), per SECURE 2.0.² If the owner died before this date, they were "pre-RBD."

Spouse options: the most favorable rules

Surviving spouses have rights that no other beneficiary receives. You have three paths:

Option 1: Roll into your own IRA

If you roll the inherited IRA into your own IRA (or treat it as your own), you become the account owner. RMDs are calculated based on your own age, and you don't have to start until your own required beginning date — April 1 of the year following the year you turn 73 or 75.

Best when: You are younger than the deceased, you don't need distributions yet, and you want to maximize tax-deferred growth. If you are under 59½ and need income from the account, be aware that withdrawals from your own IRA before 59½ trigger the 10% early withdrawal penalty — in that case, keeping it as an inherited IRA temporarily may be better.

Option 2: Keep as inherited IRA — life expectancy method

You maintain the account as an inherited IRA and take annual distributions based on your own single life expectancy (recalculated each year). If the deceased was past their RBD when they died, you start by December 31 of the year after death. If the deceased died before their RBD, you can delay distributions until December 31 of the year the deceased would have turned 73 or 75.

Best when: You are under 59½ and need distributions without the early-withdrawal penalty (inherited IRA distributions are always penalty-free regardless of your age), or when you want smaller distributions sooner without being locked into your own account rules.

Option 3: Elect the SECURE 2.0 spousal RMD rule

Beginning in 2024, a surviving spouse who is the sole beneficiary can elect to apply the deceased spouse's own life expectancy table to the inherited IRA, as if the deceased were still alive.³ This allows the surviving spouse to calculate RMDs using the deceased's longer distribution period — valuable if the deceased was younger. In practice, this election is most useful when the surviving spouse is significantly older than the deceased, since it ties distributions to the younger person's life expectancy. Consult a tax advisor before making this irrevocable election.

The 10-year rule: what non-spouse beneficiaries face

The SECURE Act (signed December 20, 2019) eliminated the "stretch IRA" for most non-spouse beneficiaries. Anyone who inherited an IRA from someone who died on or after January 1, 2020 and does not qualify as an Eligible Designated Beneficiary (EDB) must deplete the account by December 31 of the year that is 10 years after the owner's death.¹

When annual RMDs are also required (T.D. 10001)

IRS final regulations (Treasury Decision 10001, finalized July 18, 2024) added a critical wrinkle: if the deceased had already reached their required beginning date and was actively taking RMDs when they died, the beneficiary must also take annual RMDs during the 10-year period — not just deplete by year 10.⁴

How to calculate the annual RMD during the 10-year period

Annual RMDs for non-spouse beneficiaries use the Single Life Expectancy Table (IRS Pub. 590-B, Appendix B). The calculation:

1. Find your factor for your age in the year after the owner's death (e.g., if the owner died in 2024 and you're 55 in 2025, find the factor for age 55).
2. First-year RMD = December 31 prior-year account balance ÷ your factor.
3. Each subsequent year, subtract 1 from last year's factor (do not re-look up your age each year — you reduce by 1 annually).
4. In year 10, take whatever remains after the annual RMD calculation.

Example: You inherit a $600,000 traditional IRA from your father, who was 75 when he died in 2025 (post-RBD). You are 52 in 2026. From IRS Pub. 590-B, the Single Life Expectancy factor for age 52 is approximately 33.8.

*Assumes 6% portfolio growth. Actual account balance will vary. This is an illustrative example only, not a projection.

Notice that even with annual RMDs, the mandatory withdrawals in early years are relatively small — roughly 3% of the account. The bulk of the tax event hits in year 10 unless you voluntarily take larger distributions in years 1–9.

Inherited Roth IRA: different rules, better outcome

Inherited Roth IRAs follow the same beneficiary categories as traditional IRAs, with one crucial difference: no annual RMD requirement exists during the 10-year period, even if the deceased was past their required beginning date.

Why? Because SECURE 2.0 (§ 325, effective 2024) eliminated RMDs from Roth 401(k)s and Roth IRAs for the owner during their lifetime.² Since the owner never had a required beginning date, T.D. 10001's annual-RMD requirement for post-RBD deaths does not apply to inherited Roth IRAs. The account simply must be fully distributed within 10 years — on any schedule you choose.

Tax strategies for the 10-year window

Most adult children who inherit traditional IRAs are in their 40s–60s — often their peak earning years. Adding forced IRA distributions on top of a salary can push beneficiaries into significantly higher brackets. Here's how to manage it:

Spread distributions across lower-income years

If you have flexibility in the timing (pre-RBD death, or choosing to take more than the annual minimum), front-load distributions in years when your income is lower — a sabbatical year, the year before a major bonus, or early in the 10-year window before your own RMDs begin. The goal: keep combined income below the 24% bracket ceiling ($201,050 single / $383,900 MFJ for 2026) or below the IRMAA first tier ($212,000 MAGI for 2026).

Avoid the year-10 spike

The worst strategy for a post-RBD inherited traditional IRA is taking only the annual minimums in years 1–9 — a large balance accumulates, and you face a massive ordinary-income event in year 10 that can spike you into the 32–37% bracket and trigger multiple IRMAA tiers. Run the math: often, voluntary distributions above the annual minimum in years 1–9 produce a lower total tax bill than concentrating the remainder in year 10.

IRMAA awareness

If you're on Medicare (or will be), inherited IRA distributions count as ordinary income and are included in your MAGI for IRMAA calculations. A single large distribution in one year can push you across a Medicare surcharge tier — adding $630–$4,280 per person in additional Medicare premiums — for the year two years later. See our Medicare IRMAA calculator to model the impact.

QCDs are not available for inherited IRAs

A common misconception: you cannot use a Qualified Charitable Distribution (QCD) from an inherited IRA. QCDs are only available from your own IRA, and only if you are age 70½ or older. Distributions from an inherited IRA that you donate to charity are still taxable income to you — you'd need to claim a charitable deduction separately, subject to AGI limits. This is one reason why leaving a traditional IRA to a charity directly (rather than to heirs) is more tax-efficient: the charity pays no income tax on the distribution, while an adult child heir would.

Roth conversions before you die: the most powerful lever

If you own a traditional IRA and want to minimize the tax burden on your heirs, Roth conversions during the pre-RMD window (ages 60–72) convert fully taxable inherited IRA distributions into tax-free inherited Roth distributions. Your heirs still face the 10-year rule, but they owe nothing in income tax on withdrawals.

The math: a $500,000 traditional IRA inherited by an adult child in the 22% bracket produces roughly $110,000 in income tax over 10 years. The same $500,000 converted to Roth — if you pay the conversion tax at your own rate of 12% or 22% during retirement — passes completely tax-free. If your tax rate is lower than your heirs' rate, Roth conversion is pure arbitrage. See our Roth conversion calculator to model year-by-year conversions and the impact on your heirs.

What IRA owners should do now

If you're planning your estate and want to protect your heirs from a large tax event:

• Review your beneficiary designations. Name individuals directly, not your estate. Consider naming a spouse as primary and adult children as contingent — spouses get the most favorable rules.
• Consider Roth conversions in the 60–72 window. The 10-year bracket-fill window between retirement and RMD age is often your best opportunity to convert at low rates.
• If you're charitably inclined, name the charity as beneficiary of your traditional IRA and leave taxable brokerage or Roth accounts to heirs. Charities pay no income tax on inherited IRAs; your heirs pay 0% on inherited Roth and get a step-up in basis on taxable accounts.
• For large estates, consider an IRA trust. Conduit and accumulation trusts can stretch distributions and provide asset protection for heirs — but require an estate attorney to structure correctly.