Inherited IRA RMD Rules — What Beneficiaries Need to Know

Inherited IRA rules are among the most complex in the tax code — and they changed significantly under the SECURE Act (2019) and SECURE 2.0 (2022). Your options depend on your relationship to the deceased and when they passed away.

Spouse Beneficiaries — Most Flexible Options

If you inherited an IRA from your spouse, you have three options:

• Treat it as your own IRA — roll it into your own IRA, with RMDs starting at your own age 73/75
• Remain a beneficiary — take distributions based on your own life expectancy (useful if you are younger than 59½ and need access without the 10% early withdrawal penalty)
• Roll it into an inherited IRA — take distributions over your life expectancy

For most married couples, rolling into your own IRA is the simplest and most tax-efficient option.

Non-Spouse Beneficiaries — The 10-Year Rule

For most non-spouse beneficiaries (adult children, siblings, friends) who inherited an IRA after January 1, 2020, the SECURE Act replaced the "stretch IRA" with a 10-year rule: the entire account must be distributed by December 31 of the 10th year after the owner's death.

If the original owner had already started taking RMDs, non-spouse beneficiaries must also take annual distributions in years 1–9 (based on their own life expectancy) before the full liquidation in year 10. This IRS ruling applies to IRAs inherited from 2020 onward.

Eligible Designated Beneficiaries — Extended Rules

Certain beneficiaries are exempt from the 10-year rule and can still use the stretch IRA approach:

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