Inherited IRA Distribution Calculator
Model distributions from an inherited IRA or 401(k) under the SECURE Act 10-year rule, the 2024 final regulations (annual RMDs during the window for post-RBD Traditional accounts), Eligible Designated Beneficiary life-expectancy stretch, and the 5-year / ghost rules for estates and non-qualifying trusts. Uses the IRS Single Life Table.
The RBD is April 1 of the year after the owner reaches the applicable age (73 for owners born 1951–1959, 75 for owners born 1960 or later). An owner who reached that age but died before that April 1 died before the RBD.
Use 0% for qualified Roth distributions.
10-year rule with annual RMDs (Traditional, decedent died post-RBD). Annual RMD uses the greater of the beneficiary's or decedent's remaining Single Life factor (36.2), reduced by 1 each year since the first distribution year; account must be empty by end of year 2035.
| Year | Age | Start Balance | SLT Factor | RMD | Distribution | Tax | Growth | End Balance |
|---|---|---|---|---|---|---|---|---|
| 2026 | 50 | $500,000 | 36.2 | $13,812 | $13,812 | $3,315 | $29,171 | $515,359 |
| 2027 | 51 | $515,359 | 35.2 | $14,641 | $14,641 | $3,514 | $30,043 | $530,761 |
| 2028 | 52 | $530,761 | 34.2 | $15,519 | $15,519 | $3,725 | $30,915 | $546,157 |
| 2029 | 53 | $546,157 | 33.2 | $16,451 | $16,451 | $3,948 | $31,782 | $561,488 |
| 2030 | 54 | $561,488 | 32.2 | $17,438 | $17,438 | $4,185 | $32,643 | $576,694 |
| 2031 | 55 | $576,694 | 31.2 | $18,484 | $18,484 | $4,436 | $33,493 | $591,703 |
| 2032 | 56 | $591,703 | 30.2 | $19,593 | $19,593 | $4,702 | $34,327 | $606,437 |
| 2033 | 57 | $606,437 | 29.2 | $20,768 | $20,768 | $4,984 | $35,140 | $620,808 |
| 2034 | 58 | $620,808 | 28.2 | $22,014 | $22,014 | $5,283 | $35,928 | $634,721 |
| 2035 | 59 | $634,721 | 27.2 | $634,721 | $634,721 | $152,333 | $0 | $0 |
Spouse: Can roll over to their own IRA (best when younger than 73) or stay as inherited (useful when under 59½ to avoid the 10% early-withdrawal penalty).
Eligible Designated Beneficiary (EDB): Spouse, minor child of the decedent (stretch until 21, then 10-year), disabled or chronically ill, or someone not more than 10 years younger. Allowed to use the life-expectancy stretch — annual RMDs based on IRS Single Life Table, reducing the factor by 1 each year. If the decedent died on or after the RBD, the divisor is the greater of the beneficiary's and the decedent's remaining life expectancy.
Non-Eligible Designated Beneficiary (10-year rule): For deaths after 2019, most adult children and other designated beneficiaries must empty the account by Dec 31 of the 10th year after death. If the decedent died after their Required Beginning Date and the account is Traditional, annual RMDs are also required in years 1-9 (IRS final regulations published July 2024, enforced starting 2025 — the IRS waived the penalty for missed RMDs in 2021-2024).
Pre-2020 grandfathered stretch: the 10-year rule only applies to deaths on or after January 1, 2020 (SECURE Act §401). If the decedent died in 2019 or earlier, ANY designated beneficiary — not just the EDB categories above — keeps the old-law life-expectancy stretch. Enter a year of death before 2020 to model this.
Non-Designated Beneficiary (estate / non-qualifying trust): 5-year rule if decedent died before RBD (or any Roth); "ghost rule" (decedent's remaining Single Life factor minus 1 per year) if post-RBD Traditional. This was never eligible for a stretch, before or after the SECURE Act.
Penalty: 25% excise tax on missed RMDs (reduced to 10% if corrected within 2 years) under SECURE 2.0.
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Distribution rules by beneficiary type
How you must draw down an inherited IRA depends on your relationship to the original owner and whether they died on or after their Required Beginning Date: April 1 of the year after they reached the applicable age (73 for owners born 1951–1959, 75 for owners born 1960 or later). These rules apply to owners who died after 2019.
| Beneficiary | Distribution rule |
|---|---|
| Surviving spouse | Most flexible: roll into your own IRA (RMDs begin at your own applicable age), or remain a beneficiary and stretch over your life expectancy (if the owner died on or after the required beginning date, the divisor is the greater of your life expectancy and the owner's). |
| Minor child of the owner | Stretch over life expectancy until age 21, then the 10-year rule begins (account emptied within 10 years of turning 21). If the owner died on or after the required beginning date, the divisor is the greater of the child's life expectancy and the owner's. |
| Disabled or chronically ill | Eligible designated beneficiary — stretch over your life expectancy using the IRS Single Life Table. If the owner died on or after the required beginning date, the divisor is the greater of your remaining life expectancy and the owner's. |
| Not more than 10 years younger | Eligible designated beneficiary — stretch over your life expectancy (e.g. a sibling or partner close in age). If the owner died on or after the required beginning date, the divisor is the greater of your remaining life expectancy and the owner's. |
| Other non-spouse individual | 10-year rule: empty the account by December 31 of the 10th year after death. If the owner died on or after the required beginning date (Traditional), also take annual RMDs in years 1–9. |
| Estate or non-qualifying trust | 5-year rule if the owner died before the RBD; or the “ghost” life-expectancy rule (the owner's remaining single-life factor) if they died on or after the RBD. |
Inherited Roth IRAs follow the same 10-year rule for non-spouse beneficiaries but never require annual RMDs during the window, because Roth owners have no Required Beginning Date.
Worked example: 10-year rule with annual RMDs
A 55-year-old inherits a $500,000 Traditional IRA from a parent who died at age 78 (after the RBD). Because the owner had started RMDs, the beneficiary must take annual RMDs in years 1–9 and empty the account by year 10:
In each later year the factor drops by 1 (so the RMD rises), and whatever remains must be withdrawn by the end of year 10. Had the parent died before the RBD, no annual RMDs would apply — only the year-10 deadline.
Frequently asked questions
What is the 10-year rule for inherited IRAs?
For most non-spouse beneficiaries of an IRA owner who died after December 31, 2019, the entire inherited IRA must be distributed by December 31 of the 10th year following the year of death. Under IRS final regulations issued in July 2024, if the decedent died after their Required Beginning Date and the account was a Traditional IRA, the beneficiary must also take annual RMDs in years 1-9. The IRS waived missed-RMD penalties for 2021-2024, with enforcement beginning in 2025.
Who qualifies as an Eligible Designated Beneficiary (EDB)?
EDBs include: surviving spouse; a minor child of the decedent (until age 21); a disabled or chronically ill individual; and anyone not more than 10 years younger than the decedent. EDBs can use the life-expectancy stretch; if the owner died on or after the required beginning date, the divisor is the greater of the beneficiary's remaining life expectancy and the owner's (Treasury regulation on post-RBD inherited RMDs).
What is the Required Beginning Date (RBD)?
April 1 of the year following the year the IRA owner reaches the applicable age: 73 for owners born 1951 through 1958, 75 for owners born in 1960 or later (1959 is unresolved in the statute; Treasury's proposed regulations apply 73). Pre- vs post-RBD death determines whether Traditional-IRA beneficiaries take annual RMDs during the 10-year window.
Do inherited Roth IRAs have annual RMDs?
No. Roth IRAs have no RBD, so non-spouse designated beneficiaries empty the account within 10 years but are not required to take annual RMDs. Qualified distributions remain tax-free.
What is the penalty for missing an inherited IRA RMD?
25% excise tax on the shortfall under SECURE 2.0 (down from 50%). Reduced to 10% if corrected within a timely correction window.
Can a spouse roll an inherited IRA into their own IRA?
Yes — this option is unique to surviving spouses. Treating the account as your own means no 10-year rule and your own RMDs don't begin until the year you reach your own applicable age (73 for people born 1951–1959, 75 for people born 1960 or later). Alternatively a spouse can stay a beneficiary, which can be better if you're under 59½ and need penalty-free access.
Do I take an RMD in the year the owner died?
If the owner had reached their Required Beginning Date and had not yet taken their full RMD for the year of death, the beneficiary must take that remaining year-of-death RMD by December 31. It is taxed to the beneficiary, not the estate.
Does the 10-year rule require equal annual withdrawals?
No. When the owner died before their RBD, you can withdraw any amounts in any years as long as the account is empty by the end of year 10 — many beneficiaries spread withdrawals to manage their tax bracket. When the owner died on or after the RBD, annual RMDs in years 1–9 are the minimum, but you can always take more.
How are inherited IRA distributions taxed?
Distributions from an inherited Traditional IRA are ordinary income in the year you take them. Qualified distributions from an inherited Roth IRA are tax-free. There is no early withdrawal penalty on inherited IRA distributions regardless of your age.
Sources
Inherited IRA rules by situation
Related Calculators
RMD Calculator
Required minimum distributions, age 73 RBD, life-expectancy tables
Roth vs Traditional IRA
Side-by-side Roth vs traditional projection — current-year deduction vs tax-free retirement withdrawal at your projected marginal rate
Early Withdrawal Penalty
10% pre-59½ + income tax, first-home exception, SEPP 72(t)