Inherited IRA: The 10-Year Rule Explained

The 10-year rule

For deaths after 2019, most non-spouse beneficiaries must fully distribute the inherited IRA by December 31 of the 10th year after the original owner's death. There is no annual required amount for those beneficiaries in the general case, only the requirement that the account is empty by the end of year 10.

When annual RMDs also apply

Under the 2024 final regulations, if the original owner had already started RMDs (had reached the RMD age) before death, the beneficiary must also take annual RMDs in years 1 through 9, and then empty the rest by the end of year 10. If the owner died before their RMD start age, only the year-10 empty rule applies.

Eligible designated beneficiaries

• Surviving spouses
• Minor children of the original owner (until age of majority)
• Disabled or chronically ill individuals
• Beneficiaries not more than 10 years younger than the owner

Spouses have more options

A surviving spouse can treat the inherited IRA as their own, roll it into their own IRA, or remain a beneficiary. Treating it as their own is usually best when the spouse is younger than the RMD start age, because it defers RMDs to the surviving spouse's own timeline.

Worked example

A 55-year-old inherits a traditional IRA from a parent who died at age 78 already taking RMDs. The 10-year rule applies. The beneficiary must take an annual RMD in years 1 through 9 and empty the remaining balance by December 31 of year 10.