Inherited IRA Rules: The 10-Year Rule and Your Options

If you inherit an IRA from someone who died after 2019, you’ll usually have to empty it by December 31 of the 10th year after the year they died. That’s the “10-year rule.” Surviving spouses and a few other “eligible designated beneficiaries” get more flexible options, and whether you must also take money out every year depends on whether the original owner had already started required minimum distributions. This guide walks through the rules in plain English, based on IRS Publication 590-B.

Step 1: Figure out which kind of beneficiary you are

Your options depend almost entirely on how the IRS classifies you:

The list of eligible designated beneficiaries comes straight from Publication 590-B: the owner’s surviving spouse, the owner’s minor child, a disabled individual, a chronically ill individual, or any other individual who is not more than 10 years younger than the IRA owner.

The 10-year rule, explained

Under the 10-year rule, the whole inherited IRA must be withdrawn by December 31 of the year containing the 10th anniversary of the owner’s death. The IRS’s own example: if the owner died in 2025, the account must be fully distributed by December 31, 2035.

Whether you also need withdrawals in years 1 through 9 depends on when the owner died:

• The owner died before their required beginning date (they hadn’t started RMDs yet): no withdrawal is required in any year before the 10th year. You can take money out whenever you like, as long as the account is empty by the deadline.
• The owner died on or after their required beginning date (they had started RMDs): under final IRS regulations published in 2024, you must take an annual RMD in years 1 through 9 and empty the account by the end of year 10 (Internal Revenue Bulletin 2024-33). The IRS didn’t charge the penalty for missed annual amounts in 2021 through 2024 while it finalized the rules (see Notice 2024-35), but annual withdrawals are expected from 2025 on.

The required beginning date is generally April 1 of the year after the owner reached RMD age, which is 73 under current law. Our RMD guide explains how RMD age works.

If you’re the surviving spouse

A spouse who is the sole beneficiary has the most choices:

• Treat the IRA as your own (or roll it into your own IRA). It then follows your own RMD schedule, which can be useful if you’re younger than your spouse was. The trade-off: withdrawals before 59½ could face the 10% early-withdrawal tax.
• Stay a beneficiary (keep it as an inherited IRA). Withdrawals avoid the 10% early-withdrawal tax, which can make this the better choice if you’re under 59½ and need the money. If your spouse died before their required beginning date, you don’t have to start RMDs until the year your spouse would have reached it.

Publication 590-B notes that you’re treated as having chosen to make the IRA your own if you make contributions or rollovers into the inherited IRA, or skip a required distribution as a beneficiary. Decide on purpose rather than by accident.

If you inherit a Roth IRA

An inherited Roth IRA follows the same 10-year rule for most beneficiaries. But because the IRS treats a Roth owner as having died before their required beginning date, non-spouse beneficiaries have no annual withdrawals in years 1 through 9. The account just has to be empty by the end of year 10. Withdrawals are usually tax-free if the original owner’s Roth had been open at least five years. Many beneficiaries leave an inherited Roth invested until near the deadline to get the most tax-free growth.

How inherited IRA withdrawals are taxed

• Traditional IRA: withdrawals are taxed as ordinary income in the year you take them (except any after-tax basis the owner had).
• No 10% early-withdrawal penalty: distributions made because of the owner’s death are exempt from the 10% additional tax, whatever your age.
• Spread it out: taking everything in year 10 can push you into a much higher tax bracket. Spreading withdrawals over several years often lowers the total tax. Many people time larger withdrawals for lower-income years, such as after retiring.

What happens if you miss a required withdrawal

If you take less than the required amount, the shortfall can be hit with a 25% excise tax, reduced to 10% if you correct it within two years (IRS RMD FAQs). The IRS may waive it if the shortfall was due to reasonable error and you’re fixing it. File Form 5329 to report it or request a waiver.

A simple plan for the 10 years

1. Retitle the account correctly as an inherited (beneficiary) IRA. Never move the money into your own IRA unless you’re the spouse; for anyone else, that counts as a full distribution.
2. Confirm your beneficiary type and whether the owner had started RMDs. The IRA custodian can tell you.
3. Map the withdrawals: required annual amounts (if any), plus extra in lower-income years, so you’re not stuck with one huge taxable withdrawal in year 10.
4. Fold it into your own plan. Run the money through the retirement savings calculator and check your overall target with how much do you need to retire.

Inherited accounts are a good reason to make sure your own beneficiary forms are current too. Our directory’s beneficiaries and documents resources and the official IRS Publication 590-B listing are good next stops. If the account is large or a trust is the beneficiary, a fee-only fiduciary or tax professional is worth the cost.

Common questions

What is the 10-year rule for inherited IRAs?

Most non-spouse beneficiaries must empty the account by December 31 of the year containing the 10th anniversary of the owner’s death.

Do I have to take money out every year?

Only if the owner had already reached their required beginning date. Otherwise, nothing is required until year 10.

Who is an eligible designated beneficiary?

A surviving spouse, the owner’s minor child, a disabled or chronically ill person, or anyone not more than 10 years younger than the owner.

Is there a penalty for withdrawing before 59½?

No. Death distributions are exempt from the 10% additional tax, though traditional IRA withdrawals are still taxable income.

Does an inherited Roth IRA have required withdrawals?

Not annually for most non-spouse beneficiaries, but it must be emptied by the end of year 10.

Sources

• IRS Publication 590-B — Distributions from IRAs (beneficiary types, 10-year and 5-year rules, spouse options, inherited Roth IRAs)
• Internal Revenue Bulletin 2024-33 — final RMD regulations
• IRS Notice 2024-35 (relief for certain missed 2024 distributions)
• IRS — RMD FAQs (excise tax)
• IRS — Exceptions to tax on early distributions

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