Inherited IRA Distribution Calculator — 10-Year Rule (2026)

Most non-spouse beneficiaries who inherit a traditional IRA must fully distribute the account within 10 years of the original owner's death. IRS final regulations (T.D. 10001, July 2024) confirmed that when the original owner died on or after their Required Beginning Date, annual RMDs are also mandatory in years 1–9 — not just a complete distribution by year 10. This calculator shows whether you owe annual RMDs, your mandatory distribution schedule, and how timing your withdrawals affects your tax bill.

Inherited IRA distribution calculator

Enter the details below. The calculator determines whether annual RMDs apply, shows the required distribution schedule for years 1–10, and estimates the tax impact at your marginal rate.

The 10-year rule explained

The SECURE Act of 2019 eliminated the "stretch IRA" for most non-spouse beneficiaries. Before 2020, beneficiaries could take distributions over their own life expectancy — spreading tax liability across decades. Now, most non-spouse beneficiaries must fully distribute the account within 10 years of the original owner's death.

The 10-year period starts the year after the owner's death. Year 1 of the 10-year period = the calendar year following the year of death. The account must be fully distributed by December 31 of year 10.

Who the 10-year rule applies to (non-eligible designated beneficiaries, or non-EDBs):

• Adult children (most common scenario — children over age 21)
• Grandchildren
• Siblings, other relatives, friends
• Most trusts
• Estates

Who it does NOT apply to (Eligible Designated Beneficiaries, or EDBs): surviving spouses (who can roll over the IRA); minor children of the decedent (10-year rule kicks in when the child turns 21); disabled beneficiaries; chronically ill beneficiaries; any individual not more than 10 years younger than the decedent. EDBs can use a life-expectancy stretch — a major estate planning advantage worth preserving through trust design.

When annual RMDs are required — the T.D. 10001 rule

Before July 2024, there was genuine uncertainty: did the 10-year rule simply require account depletion by year 10, or were annual RMDs also required? The IRS resolved this with final regulations T.D. 10001:

What is the Required Beginning Date? The RBD is April 1 of the year following the year the account owner reached their RMD age. Under SECURE 2.0:

• Born 1951–1959: RMD age = 73. RBD = April 1 of the year after they turn 73.
• Born 1960 or later: RMD age = 75. RBD = April 1 of the year after they turn 75.
• Born 1950 or before: RMD age was 72 (SECURE 1.0) or 70½ (pre-SECURE). Most decedents in this category are already well past their RBD.

Example: A parent born in 1952 reached RMD age 73 in 2025. Their RBD was April 1, 2026. If they died in December 2026 (after April 1), they died past their RBD — their adult child inheriting the IRA must take annual RMDs in years 1–9. If they died in February 2026 (before April 1, 2026), they died before their RBD — no annual RMDs are required.

Computing the annual RMD

When annual RMDs are required, the calculation uses the beneficiary's Single Life Expectancy (SLE) factor from IRS Pub 590-B Table I (updated 2022 per T.D. 9930):

• Year 1 RMD = December 31 balance of year of death ÷ SLE factor for your age in year 1
• Year 2 RMD = December 31 balance of year 1 ÷ (year 1 factor − 1)
• Year N RMD = December 31 balance of year N−1 ÷ (year 1 factor − (N−1))
• Year 10: Entire remaining balance must be distributed

Roth IRA exception

Inherited Roth IRAs are subject to the 10-year rule but no annual RMDs are required in years 1–9, regardless of when the original owner died. Roth IRA owners have no Required Beginning Date (no RMDs during their lifetime), so the "past RBD" test never triggers for Roth accounts.

Strategy implication: With an inherited Roth IRA, the optimal approach is generally to delay all distributions until year 10 — let the tax-free growth compound for a full decade, then take one large tax-free distribution. There is no penalty for doing so.

Spouse exception — the rollover advantage

A surviving spouse has a choice the calculator above doesn't cover: they can roll over the inherited IRA into their own IRA. Once rolled over, it becomes their own account — subject to their own RMD schedule (not the 10-year rule), and they can designate their own beneficiaries who would then get their own 10-year window.

For most surviving spouses, rollover is the superior strategy. The exception: if the surviving spouse is under 59½ and needs distributions — taking from an inherited IRA avoids the 10% early withdrawal penalty, while rolling over to their own IRA would subject withdrawals to the penalty until age 59½.

Tax strategy: when to take more than the minimum

When annual RMDs aren't required (decedent died before RBD), you control the timing entirely. The temptation is to delay — let the balance grow and take it all in year 10. This maximizes tax-deferred growth but creates a massive taxable event in year 10 that could push you into a higher bracket, trigger IRMAA surcharges, and affect other income-tested benefits.

The better strategy for many beneficiaries is bracket management:

• Calculate how much additional IRA income keeps you in your current bracket in years 1–9 (don't cross into a higher bracket unnecessarily)
• Fill up to the top of your current bracket each year with IRA distributions
• Minimize the year 10 explosion by pre-distributing in low-tax years (e.g., early retirement before Social Security, a gap year between jobs)

When annual RMDs are required, you must take at least the minimum — but you can take more. Consider accelerating distributions in years when your income is lower (between jobs, early retirement, before Social Security begins).

5 common inherited IRA mistakes

1. Missing year 1 RMD when decedent was past RBD. Many heirs assume they can wait until year 10. If the decedent was past their RBD, you owe an RMD in year 1 (the year after death). The amount is based on the December 31 balance of the year of death. Miss it and you face a 25% excise tax on the shortfall.
2. Treating the 10-year clock as starting from account opening. The 10-year period starts the year after the account owner dies — not the year you inherited or opened the inherited IRA.
3. Naming a non-see-through trust as beneficiary. If the original owner named a trust that doesn't qualify as a "see-through trust" under Treas. Reg. §1.401(a)(9)-4, the trust (as an entity) must distribute within 5 years if the owner died before RBD — not 10. This is why trust as beneficiary planning requires careful drafting.
4. Ignoring state income tax. Inherited IRA distributions are ordinary income. In high-income states (CA 13.3%, NY 10.9%), the combined marginal rate on a large year-10 distribution can exceed 50%. State-level bracket management matters as much as federal.
5. Missing the Roth conversion opportunity in the decedent's estate. If the decedent had a large traditional IRA and was in a lower bracket the year before death, a strategic Roth conversion could have shifted the tax burden from the heir to the decedent — often at a lower rate. This is a key estate planning tool to discuss with the original account owner while they're alive. See IRA estate planning strategies.