Most non-spouse beneficiaries must empty an inherited IRA by year 10. Annual RMDs within the 10-year window are enforced starting with the 2025 tax year.
The SECURE Act (2019) replaced the lifetime stretch IRA with a 10-year depletion rule for most non-spouse beneficiaries who inherit from owners dying on or after January 1, 2020. If the original owner had already started RMDs before death, annual distributions are required in years 1-9 within that window — a requirement the IRS enforces starting with the 2025 tax year, ending penalty waivers that covered 2021-2024. Five categories of eligible designated beneficiaries — including surviving spouses and those within 10 years of the owner's age — can still stretch distributions over a lifetime. Inherited Roth IRA distributions are generally income-tax-free but still subject to the 10-year rule.
When you inherit a traditional IRA or 401(k) from a family member, the account does not automatically become yours to manage on your own timetable. The SECURE Act (2019) fundamentally changed the rules for most non-spouse beneficiaries — replacing the old stretch IRA strategy with a mandatory 10-year depletion window. And starting with the 2025 tax year, the IRS is enforcing annual distribution requirements within that window that many inheritors did not realize applied to them.
This guide covers how the 10-year rule works, who is exempt, what the surviving spouse's options are, and what the 2025 enforcement change means if you inherited an IRA and have not yet been taking distributions.
Before the SECURE Act, non-spouse beneficiaries could stretch inherited IRA withdrawals over their own life expectancy — sometimes for decades. The tax hit was spread out, and the account continued growing tax-deferred for the beneficiary's lifetime.
The SECURE Act (effective January 1, 2020) eliminated the stretch IRA for most non-spouse beneficiaries. Per IRS guidance on RMDs for IRA beneficiaries: if you inherited an IRA or other retirement account from someone who died on or after January 1, 2020, you are almost certainly subject to the 10-year rule. You must fully deplete the inherited account by the end of the 10th calendar year following the year of the original owner's death. If the owner died in 2022, the account must be empty by December 31, 2032.
If you inherited before January 1, 2020, the old stretch rules still apply to your account — you are not subject to the 10-year rule.
The 10-year rule does not simply mean you can wait until year 10 to withdraw everything. Whether you must also take annual distributions in years 1-9 depends on one fact: had the original owner already begun Required Minimum Distributions before they died?
The Required Beginning Date (RBD) is April 1 of the year after the account owner reached their RMD starting age — currently age 73 for those born 1951-1959, or age 75 for those born 1960 or later (see Required Minimum Distributions: 2026 Rules and How to Calculate Yours for the full age breakdown). If the original owner died before reaching that date — meaning they had not yet started RMDs — you as the beneficiary have scheduling flexibility:
You can take distributions on any schedule, or take nothing in years 1-9 and withdraw the full balance in year 10 — though the tax consequences of a large single-year withdrawal can be steep.
If the owner had already started taking RMDs when they died, the rules are stricter for non-spouse beneficiaries:
This is the rule that caught many inheritors off guard. The IRS issued a series of penalty waivers — covering tax years 2021 through 2024 — while it finalized the regulations. Those waivers have now expired. Starting with the 2025 tax year, the annual RMD requirement for this group is enforced. Missing a required annual distribution triggers a 25% excise tax on the shortfall, reduced to 10% if you take the missed distribution and file IRS Form 5329 within the IRS correction window.
If you inherited an IRA between 2020 and 2024 from someone who was already taking RMDs, and you have not been taking annual distributions, consult a tax professional about correcting missed years and establishing a withdrawal schedule.
Five categories of beneficiaries are classified as Eligible Designated Beneficiaries (EDBs) under the SECURE Act and retain the old stretch rule — meaning they can take distributions over their own life expectancy rather than being subject to the 10-year rule:
1. Surviving spouse of the deceased account owner 2. Minor child of the deceased — can use the stretch until reaching the age of majority, after which a 10-year window applies 3. Disabled beneficiary — as defined under IRS rules, generally requiring inability to engage in substantial gainful activity 4. Chronically ill beneficiary — per IRS certification requirements 5. Individual not more than 10 years younger than the original owner — a sibling, a parent, or a peer of similar age would typically qualify
Per IRS FAQ on inherited IRAs, if you fall into one of these categories, verify your status with your IRA custodian and confirm your applicable distribution schedule.
A surviving spouse has options available to no other beneficiary:
Option 1 — Spousal rollover (treat the IRA as your own): Roll the inherited IRA into your own IRA or elect to treat it as your own. After this, RMDs follow your own age schedule — not the 10-year rule — and the account continues growing tax-deferred until your Required Beginning Date. This is typically the better long-term strategy for spouses who do not need immediate income.
Option 2 — Keep it as an inherited IRA: If you are under age 59.5 and need income from the account, keeping it titled as an inherited IRA lets you take distributions without the 10% early withdrawal penalty that would apply to distributions from your own IRA at that age. Once you no longer need that penalty exemption, you can still elect the spousal rollover.
Spouses can delay choosing between these options while they assess their situation. Once you elect the spousal rollover, however, you generally cannot reverse it.
Inheriting a Roth IRA is subject to the same 10-year depletion structure — the account must be emptied by the end of the 10th year following the original owner's death. The meaningful difference: distributions from a qualified inherited Roth IRA are income-tax-free, provided the original Roth account had been open for at least five years when the owner died.
Per IRS Publication 590-B, the five-year holding period for an inherited Roth IRA uses the original owner's first Roth contribution year — not the year you inherited. In most cases, inheritors of established Roth IRAs will find that all distributions during the 10-year window are tax-free.
For context on how Roth and traditional accounts differ beyond the inherited account question, see Roth IRA vs. Traditional IRA: How to Choose in 2026.
For inheritors of large traditional IRAs who are not required to take annual distributions (because the original owner had not yet started RMDs), waiting until year 10 to withdraw creates a significant tax event. Withdrawing $400,000 in a single year adds that entire amount to your ordinary income, potentially pushing you into the top federal bracket and triggering state income taxes.
Practical approaches to manage this:
One limitation: non-spouse beneficiaries cannot convert inherited traditional IRA funds to a Roth IRA. That option exists only for your own accounts.
The 10-year rule applies to inherited 401(k) accounts as well as inherited IRAs. As a non-spouse beneficiary of a 401(k), you must generally deplete the account within the 10-year window under the same framework. You may be able to roll an inherited 401(k) into an inherited IRA — which can simplify management and expand investment options. For the mechanics of 401(k) rollovers more broadly, see How to Roll Over a 401(k) to an IRA.
---
This content is educational and does not constitute financial, legal, or tax advice. Inherited IRA and 401(k) rules depend on account type, the original owner's age and distribution status, and your relationship to the deceased. Consult a qualified tax professional for guidance specific to your situation.
The 10-year rule requires most non-spouse beneficiaries who inherit a traditional IRA or 401(k) from an owner who died on or after January 1, 2020 to fully deplete the inherited account by December 31 of the 10th calendar year after the owner's death. The SECURE Act (2019) eliminated the old stretch IRA — which let beneficiaries spread withdrawals over their own lifetime — and replaced it with this fixed depletion window. Per IRS guidance on RMDs for IRA beneficiaries, if you inherited before January 1, 2020, the old stretch rules still apply to your account.
It depends on whether the original owner had already started Required Minimum Distributions when they died. If the owner died before their Required Beginning Date — meaning they had not yet started RMDs — you have no annual distribution requirement in years 1-9 and can withdraw on any schedule, including a lump sum in year 10. If the owner died on or after their Required Beginning Date, you must take annual distributions in each of years 1-9 using your own single life expectancy factor from the IRS Single Life Expectancy Table in IRS Publication 590-B. The IRS enforced this annual RMD requirement starting with the 2025 tax year — the penalty waivers covering 2021-2024 have expired.
A surviving spouse has more flexibility than any other beneficiary. Per IRS FAQ on inherited IRAs, you can (1) roll the inherited IRA into your own IRA and treat it as your own — RMDs then follow your own age schedule, not the 10-year rule — or (2) keep it as an inherited IRA. Keeping it as an inherited IRA is useful if you are under 59.5 and need income, because distributions from an inherited IRA are not subject to the 10% early withdrawal penalty that would apply to your own IRA at that age. Most spouses who do not need immediate funds choose the spousal rollover for the longer tax-deferred growth runway.
Any amount remaining in the inherited IRA after the 10-year deadline is subject to a 25% excise tax on the undistributed balance. SECURE Act 2.0 reduced this from the prior 50% penalty. The rate drops to 10% if you take the missed distribution and file IRS Form 5329 requesting the reduction within the IRS correction window. Per IRS FAQ on inherited IRAs, the IRS has historically granted first-time waivers when taxpayers correct errors promptly — but this is discretionary and not guaranteed.
Generally no, provided the Roth IRA was at least five years old when the original owner died. Qualified distributions from an inherited Roth IRA are income-tax-free — the 10-year depletion rule still applies, but withdrawals during that window do not create a taxable income event. Per IRS Publication 590-B, the five-year clock for an inherited Roth IRA uses the original owner's first Roth contribution year, not the year you inherited. If the account was less than five years old when inherited, earnings (typically a small portion of the balance) may be taxable on distribution.