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

Last updated: July 14, 2026

What Are the Inherited IRA Rules? (Quick Answer)

The inherited IRA rules determine how — and how quickly — a beneficiary must withdraw money from an IRA they inherit. Under current law, most non-spouse beneficiaries must fully empty the inherited IRA within 10 years of the original owner's death — this is the "10-year rule," introduced by the SECURE Act for IRA owners who died after December 31, 2019. The rules for IRA inheritance now also require annual Required Minimum Distributions (RMDs) in years 1–9 of that window if the original owner had already reached their required beginning date for RMDs at the time of death. This annual RMD requirement became fully effective beginning with the 2025 distribution year. Certain beneficiaries — including surviving spouses, minor children, and disabled or chronically ill individuals — qualify for more favorable treatment and may stretch distributions over their life expectancy instead. Understanding which category applies to your situation is the critical first step in planning your distributions.

Page last refreshed July 14, 2026. Rule summary reflects IRS Publication 590-B (2025), "Distributions from Individual Retirement Arrangements (IRAs)," irs.gov/publications/p590b (as of Jan. 21, 2026 revision); and IRS "Retirement topics – Beneficiary," irs.gov/retirement-plans/plan-participant-employee/retirement-topics-beneficiary (last reviewed Aug. 26, 2025). IRS guidance has changed multiple times since the SECURE Act; beneficiaries should confirm current-year specifics with a qualified tax advisor.

This article provides general educational information about inherited IRA distribution rules. It is not individualized tax or legal advice. Please consult a qualified tax professional or financial advisor before making decisions about your specific situation.

Background: How the SECURE Act Changed IRA Inheritance

Before the SECURE Act was signed into law in December 2019, beneficiaries who inherited an IRA could spread withdrawals over their own lifetime — an arrangement often called the "stretch IRA." This strategy allowed tax-deferred growth to compound for decades, which was a powerful wealth-transfer tool for many families.

The SECURE Act fundamentally changed this by eliminating the stretch IRA for most non-spousal beneficiaries. In its place, it introduced the 10-year rule, requiring that most inherited IRAs be fully distributed within 10 years of the original owner's death.

However, the SECURE Act created confusion about whether annual Required Minimum Distributions were required during those 10 years, or whether beneficiaries simply needed to empty the account by year 10 with no interim distribution requirements. The IRS answered that question definitively in 2024.

The 2024 Final IRS Regulations: What Changed in 2025

On July 18, 2024, the IRS issued final regulations under Internal Revenue Code §401(a)(9), which are generally applicable to distribution calendar years beginning on or after January 1, 2025. These regulations resolved the long-standing ambiguity around annual RMDs during the 10-year window.

The rules now depend on whether the original IRA owner died before or after their required beginning date (RBD) for RMDs — generally April 1 of the year following the year the owner turned age 73.

Per IRS Publication 590-B (2025), irs.gov/publications/p590b (as of Jan. 21, 2026 revision); and IRS "Retirement topics – Beneficiary," irs.gov/retirement-plans/plan-participant-employee/retirement-topics-beneficiary (last reviewed Aug. 26, 2025). Effective for distribution calendar years beginning on or after January 1, 2025.

If the Original Owner Died On or After Their Required Beginning Date

Non-spouse beneficiaries who are subject to the 10-year rule face a two-layer requirement starting with the 2025 distribution year:

  • Annual RMDs in years 1–9: The beneficiary must take an annual RMD each year based on their own single life expectancy (using IRS Publication 590-B, Table I). This requirement was not enforced during 2021–2024 due to IRS penalty relief issued through Notices 2022-53, 2023-54, and 2024-35. That relief has now expired.
  • Full account depletion by year 10: The entire remaining balance must be distributed by December 31 of the 10th year following the year of the original owner's death.

If the Original Owner Died Before Their Required Beginning Date

If the IRA owner had not yet reached their required beginning date at the time of death, the annual RMD requirement in years 1–9 does not apply. The beneficiary still must empty the account by December 31 of the 10th year, but has full flexibility on the timing of distributions within that window.

Who Is Subject to the 10-Year Rule?

The 10-year rule applies to "non-eligible designated beneficiaries" — generally, any non-spouse individual who inherited an IRA from an owner who died after December 31, 2019, and who does not qualify for the exceptions described below.

Eligible Designated Beneficiaries: The Stretch IRA Survives for Some

Certain beneficiaries — called "eligible designated beneficiaries" — are still permitted to stretch distributions over their life expectancy, avoiding the 10-year rule entirely. These include:

  • Surviving spouses — the most flexible option; a spouse can treat the inherited IRA as their own.
  • Minor children of the original owner — can use the stretch IRA until age 21, after which the standard 10-year rule applies to the remaining balance.
  • Disabled individuals — as defined under IRC §72(m)(7).
  • Chronically ill individuals — as defined under IRC §7702B(c)(2).
  • Individuals not more than 10 years younger than the original owner — such as a sibling close in age.

Penalty for Missing an Annual RMD

Missing a required annual RMD carries a 25% excise tax on the amount that should have been distributed, under IRC §4974. This penalty is reduced to 10% if the shortfall is corrected within the IRS correction window. For beneficiaries who missed RMDs during the IRS relief period of 2021–2024, no penalty applies — but distributions must begin in 2025.

Examples: How the Rules Apply in Practice

Example 1 — Owner died after required beginning date: Sarah inherits a traditional IRA from her father, who passed away in 2022 at age 78. Because her father had already passed his required beginning date, Sarah is subject to the two-layer requirement. She must take annual RMDs from the inherited IRA each year from 2025 through 2031, and the entire remaining balance must be distributed by December 31, 2032 (the 10th year after the year of death).

Example 2 — Owner died before required beginning date: David inherits an IRA from his mother, who passed away in 2022 at age 70. Because his mother had not yet reached her required beginning date, David has no annual RMD requirement in years 1–9. He simply needs to fully deplete the inherited IRA by December 31, 2032, and can choose any withdrawal schedule that works for his tax situation.

Example 3 — Minor child beneficiary: Elena, age 10, inherits an IRA from her mother. As a minor child of the owner, Elena qualifies as an eligible designated beneficiary and can use the stretch IRA — taking distributions over her life expectancy. When she turns 21, the standard 10-year rule begins, and she must deplete the remaining balance within 10 years of that date.

Key Takeaways: Rules for IRA Inheritance at a Glance

  • Most non-spouse beneficiaries must empty an inherited IRA within 10 years of the owner's death.
  • If the owner died on or after their RMD required beginning date, annual RMDs are also required in years 1–9 of that 10-year period — effective beginning with the 2025 distribution year.
  • If the owner died before their required beginning date, no annual RMDs are required, but the 10-year depletion deadline still applies.
  • Eligible designated beneficiaries (surviving spouses, minor children, disabled or chronically ill individuals, and those within 10 years of the owner's age) may still use life expectancy distributions — the "stretch IRA."
  • Missing a required RMD triggers a 25% excise tax (reduced to 10% with timely correction) under IRC §4974.
  • The IRS relief for missed RMDs in 2021–2024 (Notices 2022-53, 2023-54, and 2024-35) has expired — 2025 distributions are required.

Sources: IRS Publication 590-B (2025), "Distributions from Individual Retirement Arrangements (IRAs)," irs.gov/publications/p590b (as of Jan. 21, 2026 revision); IRS "Retirement topics – Beneficiary," irs.gov/retirement-plans/plan-participant-employee/retirement-topics-beneficiary (last reviewed Aug. 26, 2025); IRS final regulations under Internal Revenue Code §401(a)(9), issued July 18, 2024, generally applicable to distribution calendar years beginning on or after January 1, 2025. IRS guidance on inherited IRA rules has changed multiple times since 2019 — beneficiaries should confirm current-year specifics with a qualified tax advisor before making distribution decisions.

Planning Ahead for Your Inherited IRA

The rules for IRA inheritance are now more complex than ever. Getting the annual RMD timing right — especially in the first few years after inheriting — can meaningfully affect your total tax liability over the 10-year window. Decisions about when to withdraw, how much to withdraw each year, and how distributions interact with your other income all require careful planning.

At Brandywine Oak Private Wealth, our integrated approach brings together our wealth advisory and in-house tax advisory teams to help beneficiaries navigate inherited IRA rules in a way that aligns with their broader financial plan. If you've recently inherited an IRA and want to understand your options, we welcome you to reach out.

To schedule a conversation, call (484) 785-0050 or contact us through our website.

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. He holds the CERTIFIED FINANCIAL PLANNER™, Certified Private Wealth Advisor®, Chartered Retirement Planning Counselor℠, and Retirement Management Advisor® designations.

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.