Inherited IRA RMD Rules for 2026: The 10-Year Clock and Who It Applies To

April 20, 2026

For the broader RMD context, start with RMD Planning: The Complete Guide. This piece focuses specifically on inherited IRAs — who the 10-year rule applies to, who’s exempt, and how the 2025 enforcement of annual RMDs during the 10-year window affects current beneficiaries.

What changed: from stretch to 10-year rule

Before the SECURE Act of 2019, non-spouse beneficiaries of IRAs could use the “stretch IRA” strategy. They opened an inherited IRA, took annual Required Minimum Distributions based on their own life expectancy (using IRS Single Life Expectancy tables), and let the remainder of the account continue to grow tax-deferred over decades. A 30-year-old inheriting a $500,000 IRA could spread distributions across 50+ years. The long deferral produced significant compounding and minimized annual tax hits.

The SECURE Act eliminated this for most non-spouse beneficiaries. For deaths occurring on or after January 1, 2020, inherited IRAs going to non-spouse designated beneficiaries are subject to the 10-year rule: the entire account must be distributed by December 31 of the tenth year following the original owner’s death year. The stretch was gone.

What remained unclear for years was whether beneficiaries had to take annual RMDs during the 10-year window, or whether they could defer everything to year 10 and take it all at once. The IRS proposed regulations requiring annual RMDs in 2022 but waived enforcement from 2020 through 2024 while clarifications were pending. Final regulations issued in 2024 confirmed the annual RMD requirement for a specific subset of beneficiaries, and enforcement began in 2025.

The key variable: was the original owner past RBD?

The IRS’s final 2024 rule distinguishes two cases:

Original owner died BEFORE their Required Beginning Date (RBD). The beneficiary is subject to the 10-year rule (account fully distributed by end of year 10) but NOT required to take annual RMDs during the 10 years. Distributions can happen in any pattern — year 1 lump sum, year 10 lump sum, spread evenly, or any combination — as long as the account is empty by the deadline.

Original owner died ON OR AFTER their RBD. The beneficiary is subject to the 10-year rule AND must take annual RMDs in years 1 through 9, with the remaining balance distributed in year 10. Annual RMDs are calculated using the IRS Single Life Expectancy Table based on the beneficiary’s age in the year following the decedent’s death, decremented by 1 each year.

What is the RBD? It’s April 1 of the year after the year the original owner reached RMD age (73 or 75, depending on birth year). An IRA owner born in 1952 reached RMD age 73 in 2025; their RBD is April 1, 2026. If they died before April 1, 2026, beneficiaries don’t face annual RMDs during the 10-year window. If they died on or after April 1, 2026, beneficiaries do.

For deaths occurring pre-2020, the old stretch rules still apply. The 10-year rule is prospective only.

Eligible Designated Beneficiaries (EDBs)

Five categories of beneficiaries are exempt from the 10-year rule and can still use the pre-SECURE stretch approach — lifetime distributions based on their own life expectancy using the Single Life Expectancy Table:

Surviving spouses. Have the broadest options. Can treat the inherited IRA as their own (rolling into their own IRA), treat it as inherited (using inherited-IRA rules), or disclaim it entirely. The “treat as own” election is usually most advantageous for younger surviving spouses — it resets the RMD start date to their own age 73/75, effectively extending the tax deferral window.

Minor children of the decedent, until age 21. Uses life-expectancy distributions until age 21, at which point the 10-year rule kicks in — meaning the remaining balance must be distributed by the time the child turns 31. Note: “minor child” means a minor child of the account owner specifically, not a grandchild or anyone else.

Disabled individuals. Meeting the strict IRS definition of disabled (unable to engage in any substantial gainful activity due to medically determinable physical or mental impairment). Require documentation.

Chronically ill individuals. Meeting the IRS definition of chronically ill (significant functional limitations expected to be lengthy or indefinite). Typically requires certification from a licensed healthcare practitioner.

Beneficiaries not more than 10 years younger than the decedent. This category catches sibling beneficiaries, older-adult-child beneficiaries, and non-spousal same-generation beneficiaries. If the age gap is 10 years or less, the beneficiary can stretch.

A subtle rule: beneficiaries who are OLDER than the decedent are also exempt from the 10-year rule (by virtue of being not more than 10 years younger — they’re zero or more years older). An elderly parent inheriting from a deceased adult child, for example.

Non-Eligible Designated Beneficiaries (NEDBs)

Everyone else who’s a named individual beneficiary. In practice, this is overwhelmingly adult children inheriting from their parents. Adult children more than 10 years younger than the parent — which is the typical generational gap — fall into NEDB status and face the 10-year rule.

For NEDBs where the decedent was past RBD, the annual-RMD requirement during the 10-year window interacts with tax planning in important ways.

Worked examples

Example 1: 52-year-old adult child inherits traditional IRA from 80-year-old parent who died in 2025

Decedent was past RBD (age 80 > RMD age 73). Beneficiary is an NEDB (age gap > 10 years), subject to the 10-year rule with annual RMDs.

Inherited balance, year-end 2025: $600,000
10-year deadline: December 31, 2035
Year 1 RMD (2026): $600,000 ÷ Single Life Expectancy factor at age 53 (the beneficiary’s age in 2026, the year after death) = $600,000 ÷ 33.4 = $17,964
Year 2 RMD (2027): inherited IRA year-end 2026 balance ÷ 32.4 (factor decremented by 1)
Year 3 RMD (2028): year-end 2027 balance ÷ 31.4
…continuing through year 9
Year 10 (2035): whatever balance remains must be fully distributed

The annual RMD is usually much less than 1/10 of the balance (because the Single Life factors are larger than 10 at most ages). The beneficiary has to take annual distributions but also faces a balloon payment in year 10 — or more evenly distributes throughout.

Example 2: 35-year-old adult child inherits Roth IRA from 70-year-old parent who died in 2026

Parent was 70 in 2026 — under RMD age for their birth year (born 1956, RMD age 73, not reached by death). So the decedent died BEFORE RBD.

10-year rule applies (NEDB)
No annual RMDs required during the 10-year window (pre-RBD death exception)
Beneficiary can defer all distributions to year 10 if desired
All distributions tax-free (Roth)
Deadline: December 31, 2036

For this beneficiary, the optimal strategy is often to let the Roth balance grow tax-free for 10 full years and take a single distribution at the end — maximum tax-free compounding.

Example 3: Sibling beneficiary, 8 years younger than decedent

Decedent age 72 (post-RBD under old rules) dies in 2025. Beneficiary is a brother, age 64 (8 years younger = not more than 10 years younger).

Beneficiary is an EDB (falls within 10-year age gap)
Stretch applies — annual RMDs over beneficiary’s own life expectancy
Single Life Expectancy factor at age 65: 22.9
Year 1 RMD: inherited balance ÷ 22.9
Continuing annually with factor decremented by 1

The age-gap rule is a real planning consideration for families with blended ages — naming a similar-aged sibling as backup beneficiary can preserve stretch treatment even if the primary (adult child) beneficiary predeceases.

Example 4: Surviving spouse

Husband age 78 dies in 2025 leaving IRA to wife age 72.

Spouse has three options:

Option 1 — treat as own IRA. Roll into her own IRA. RMDs start when SHE reaches RMD age (73). If she’s already past 73, RMDs start immediately but are based on her own age using Uniform Lifetime Table. This is usually best for younger surviving spouses with long remaining lives.

Option 2 — treat as inherited IRA. Keep as an inherited account in her name. Uses Single Life Expectancy Table. RMDs start year after decedent’s death. Useful when the surviving spouse is under 59½ and might need access without the early withdrawal penalty (inherited IRAs have no 10% penalty regardless of age).

Option 3 — disclaim. Pass to contingent beneficiary. Useful in estate planning scenarios where the spouse already has adequate resources and wants the money to go to children directly.

Spouses have broader flexibility than any other beneficiary category. The right choice depends on age, need for immediate access, and overall estate planning.

The missed-RMD-enforcement issue

During 2020–2024, the IRS waived penalties for missed annual RMDs during the 10-year window. Many NEDBs who inherited during those years didn’t take RMDs, interpreting the 10-year rule as allowing full deferral to year 10.

Starting in 2025, the IRS enforces annual RMDs for NEDBs whose decedents were past RBD. The missed-RMD penalty (25% of the missed amount, reduced to 10% if corrected within two years) applies going forward.

Critical for current beneficiaries: If you inherited a traditional IRA from a parent who was past RBD and you haven’t been taking annual distributions because of the 2020–2024 waiver, your first required distribution was due by December 31, 2025. For 2026, you need to take the year 2026 distribution. If you missed the 2025 distribution, file Form 5329 requesting penalty waiver and take the missed distribution promptly.

The “10-year clock” itself doesn’t reset because of the waiver — it started at the decedent’s death. A 2022 death means year 10 is 2032 regardless of whether RMDs were taken in 2023–2024.

Trust as beneficiary

Trusts can be IRA beneficiaries but add complexity:

See-through (conduit) trusts. Trust documents meet specific IRS requirements and beneficiaries behind the trust are treated as if they inherited directly. EDB analysis applies to the trust beneficiaries — if all trust beneficiaries are EDBs, trust can use stretch; if any are NEDBs, 10-year rule applies.

Accumulation trusts. Hold distributions inside the trust rather than passing through to beneficiaries. Usually taxed at trust tax rates (which compress brackets aggressively — the top 37% rate hits at roughly $15,200 for trusts). Often produces worse tax outcomes than direct inheritance.

Charitable Remainder Trusts. Special case where IRA can be paid to a CRT over time, with remainder going to charity. Can preserve stretch-like benefits for beneficiaries and create charitable legacy. Complex to set up; specific drafting and funding requirements.

Inheriting IRA through a trust is a specialty area. If your estate plan routes retirement assets through a trust, a qualified estate attorney should review the structure specifically for SECURE Act compliance. Trust-as-beneficiary rules were one of the more significant SECURE Act complications and many trusts drafted before 2020 may not work as intended.

Planning implications for current IRA owners

If you’re an IRA owner planning your estate, SECURE Act changes suggest:

Roth conversions benefit heirs more than before. Converting traditional IRA to Roth means heirs inherit Roth with 10-year distribution requirement but no annual RMDs during the window (Roth inheritance follows different distribution rules since the decedent can’t have been past RBD — Roths have no RBD). And the distributions are tax-free to heirs. Roth Conversions covers the owner-lifetime case; the heir-benefit is an additional argument for conversion.

Beneficiary designation matters more. The difference between EDB and NEDB outcomes is significant. Naming a same-generation sibling as primary beneficiary (with adult children as contingent) can preserve stretch if the sibling ultimately inherits. Complex, but meaningful in specific circumstances.

Trust beneficiary structures need SECURE-compliant drafting. If your current estate plan uses a trust to receive IRA assets, have it reviewed post-SECURE. Many pre-2020 drafts produce unintended tax consequences under current rules.

Life insurance as a wealth transfer tool. Where the goal is to transfer tax-free wealth to heirs, life insurance (purchased with after-tax dollars) can be more efficient than leaving traditional IRA to NEDB heirs, given the forced 10-year distribution and ordinary income tax treatment. The Heres app models this trade-off.

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Frequently asked questions

If I inherited before 2020, do any of the new rules apply to me?

No. Pre-2020 inheritances operate under the old stretch rules. You continue using the distribution schedule you started with, based on your own life expectancy. The 10-year rule is prospective, applying only to deaths on or after January 1, 2020.

What if I inherited from a spouse?

Spousal inheritance is much more flexible. You can treat the inherited IRA as your own (rolling it into your own IRA, resetting RMD timing to your own age), treat it as inherited (using standard inherited-IRA rules), or disclaim it. The 'treat as own' option is usually best for surviving spouses not yet at RMD age themselves.

Does the 10-year rule apply to Roth IRAs I inherit?

Yes, generally. Non-spouse beneficiaries of Roth IRAs must distribute the account within 10 years. But because Roth decedents aren't subject to RMDs during their lifetime (no RBD), the beneficiary isn't subject to annual RMDs during the 10-year window — just the year-10 full distribution deadline. Distributions are tax-free as long as the original Roth was at least 5 years old.

Can I take more than the annual RMD from an inherited IRA?

Yes. The annual RMD is a minimum; you can take more whenever you want. Some beneficiaries distribute more heavily in early years to avoid a large year-10 balloon. Others let the account grow as long as possible and take larger distributions later. The optimal pattern depends on your current tax bracket vs. expected future bracket and your cash needs.

What if the original owner had multiple beneficiaries?

If the account is split among multiple beneficiaries, each takes over their share as a separate inherited IRA. Beneficiary-level EDB/NEDB analysis applies to each one separately. For EDB treatment, all beneficiaries must be EDBs — a single NEDB beneficiary knocks everyone out of stretch treatment unless accounts are split into separate inherited IRAs before September 30 of the year after death.

If I'm an EDB and I stretch, what happens when I die?

Your successor beneficiary is subject to the 10-year rule at that point. They have 10 years from your death to distribute the remaining balance, regardless of their own EDB or NEDB status. This is why the stretch is technically a 'limited stretch' rather than perpetual — SECURE Act caps the total stretch at one generation.

What records do I need to keep for inherited IRA compliance?

Original owner's death certificate (for RBD determination), your own birth date (for Single Life factor calculation), inherited IRA account statements showing beneficiary designation, year-end balances, and distribution records. Form 5498 (custodian report) and 1099-R (distribution report) both apply to inherited IRAs — keep them with other tax records for at least seven years.

Can I convert an inherited IRA to a Roth?

No, not for non-spouse beneficiaries. Only the original account owner (or a spouse who treated the inherited IRA as their own) can convert traditional to Roth. Non-spouse inherited IRA balances must stay as inherited IRAs and follow the distribution rules — no conversion option available.

What if the IRA custodian sets up the inherited IRA incorrectly?

Custodians occasionally make mistakes on beneficiary designations, distribution schedules, or RMD calculations. You're ultimately responsible for IRS compliance, not the custodian. If you notice a problem, work with the custodian to correct it and document the corrective action. Complex situations — trust beneficiary issues, EDB status disputes, multiple-beneficiary splits — often warrant consultation with an estate attorney familiar with IRA inheritance.

Does the 10-year rule apply if I inherit a 401(k) or other employer plan?

Generally yes, with similar rules. 401(k) and other qualified plan beneficiaries can usually roll the inherited balance into an inherited IRA, which then operates under inherited-IRA rules (10-year rule for NEDBs, stretch for EDBs). Some employer plans don't allow this rollover and force a faster distribution; check the plan document.

Sources

Chris Gammill is the founder of Ignis Tools and writes about tax-aware retirement planning. Research and drafting assisted by AI tools; all figures and claims verified by the author against primary sources. Inherited IRA rules are nuanced and individual circumstances vary — complex situations warrant consultation with a qualified estate or tax professional.

IRS Publication 590-B — Distributions from Individual Retirement Arrangements — retrieved 2026-04-20
Fidelity — Inherited IRA Withdrawals & Beneficiary RMD Rules — retrieved 2026-04-20
Kiplinger Tax Letter — The IRS 10-Year Rule For Inherited IRAs — retrieved 2026-04-20
Davenport & Associates — Inherited IRA 10-Year Rule in 2026: What To Do — retrieved 2026-04-20