By Michael Henley, CFP®, CPWA®, CRPC®, RMA®

In July 2024, the IRS issued final regulations that settled years of confusion about IRS inherited IRA rules — specifically, whether annual Required Minimum Distributions (RMDs) are required during the 10-year distribution window created by the SECURE Act. The short answer: it depends on when the original IRA owner died relative to their required beginning date for RMDs.

For the complete rule mechanics, eligible designated beneficiary exceptions, penalty details, and worked examples, see our primary guide:

See our full guide to inherited IRA distribution rules →

What the 2024 IRS Final Regulations Changed

The IRS regulations, which took effect beginning with the 2025 distribution year, resolved a key ambiguity that had existed since the SECURE Act (2019) introduced the 10-year rule for most non-spouse beneficiaries. In brief:

  • If the original IRA owner died on or after their required beginning date for RMDs, beneficiaries subject to the 10-year rule must also take annual RMDs in years 1–9 of that period — not just empty the account by year 10.
  • If the original owner died before their required beginning date, no annual RMDs are required in years 1–9 — only the 10-year depletion deadline applies.
  • The IRS granted penalty relief for missed RMDs during 2021–2024 (Notices 2022-53, 2023-54, and 2024-35); that relief has expired, and 2025 distributions are required.

For the full breakdown — including eligible designated beneficiary exceptions, RMD calculation guidance, penalty rules, and planning examples — see our complete resource:

See our full guide to inherited IRA distribution rules →

Get Clear on How IRA Legislation Affects You

Understanding the complexities of the new inherited IRA rules is crucial for proper tax planning. At Brandywine Oak Private Wealth, we are committed to providing clarity and guidance in navigating these changes. Our in-house tax team collaborates closely with our wealth advisory team to create cohesive and optimized Family Wealth Plans. This integrated approach means that our investment recommendations are made with careful consideration of tax implications, helping you to preserve and grow your family's wealth efficiently.

If you have any questions about how these new rules impact your financial strategy, please don't hesitate to reach out. We're here to provide the advice and personalized solutions you need to support your financial goals. To schedule a meeting, call (484) 785-0050 or email mhenley@BrandywineOak.com.

About Michael

Michael Henley is the Founder and CEO of Brandywine Oak Private Wealth, a private wealth management and registered independent advisory firm headquartered in Kennett Square, PA. Over the course of his 20-year career, Michael has been dedicated to helping wealthy individuals and families plan and manage all aspects of their finances and investments. With a passion for helping others look behind the curtain and understand the complex world of finance, he develops close relationships with clients as he helps them progress toward their financial goals. Michael loves to provide clarity and alleviate financial anxiety, help prevent families from overpaying in taxes, and give wealthy families permission to enjoy their life savings. He says, "No work is more gratifying than giving families outcomes to what matters most to them."

Michael holds the CERTIFIED FINANCIAL PLANNER™, Certified Private Wealth Advisor®, Chartered Retirement Planning Counselor℠, and Retirement Management Advisor® designations. Residing in Chadds Ford, PA, with his two children, he enjoys outdoor activities, particularly maintaining trails on his property, hiking with his dogs, and being an actively engaged dad, always taking his kids everywhere. Michael's latest hobby is tennis, he is obsessed with hot yoga, and he recently started ice skating to join his daughter Savannah. He can also be found moving logs to the firepit with his son Maverick on the tractor. Michael serves on the board of United Way of Southern Chester County and loves mentoring younger advisors. Great mentors helped him succeed, and he's convinced that every leader needs to both have mentors and be a mentor. To learn more about Michael, connect with him on LinkedIn.

Brandywine Oak Private Wealth is a registered investment adviser. Registration does not imply a certain level of skill or training. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.