If you inherited an IRA from someone other than your spouse — a parent, sibling, friend, or anyone else — your distribution rules are different from a spouse beneficiary's. You cannot roll the account into your own IRA, you cannot make new contributions, and you're almost certainly on a fixed timeline to empty it.
For most non-spouse beneficiaries who inherited after 2019, that timeline is 10 years. But whether you must take annual withdrawals during those 10 years — or have full flexibility on timing — depends on one fact about the original owner.
In short: Non-spouse beneficiaries who inherited an IRA after 2019 must empty the account within 10 years. Whether you owe annual withdrawals during those 10 years depends on whether the original owner had started their own RMDs — if they had, annual distributions are required in years 1–9; if they hadn't, you have full flexibility on timing. You cannot roll the account into your own IRA. The IRS penalty waiver that covered 2021–2024 has ended — missing a required distribution now triggers a 25% excise tax.
On this page
- What Makes You a Non-Spouse Beneficiary?
- The 10-Year Rule: Your Timeline
- Annual RMDs: Required or Not?
- How Your RMD Is Calculated
- Example: Tom Inherits an IRA (Owner Died Before RBD)
- What You Can and Can't Do with an Inherited IRA
- Exceptions: When the 10-Year Rule Doesn't Apply
- Common Mistakes
- Frequently Asked Questions
What Makes You a Non-Spouse Beneficiary?
You're a non-spouse beneficiary if you inherited an IRA from anyone other than your spouse. The most common scenario is an adult child inheriting from a parent. But the same rules apply if you're a sibling, friend, niece, nephew, or any other individual named as beneficiary.
The IRS classifies most non-spouse individuals as Designated Beneficiaries — which means the 10-year rule applies. A small number of non-spouse beneficiaries qualify for an exception (surviving minor children, disabled or chronically ill individuals, or people not more than 10 years younger than the deceased). Those are called Eligible Designated Beneficiaries, and they get different, more favorable rules. We'll cover those below.
There's also a third category: Non-Designated Beneficiaries. This applies when the IRA was left to an estate, a charity, or certain types of trusts rather than to a named individual. The rules are different again — and generally less favorable. If you inherited through an estate, talk to the estate's attorney or a tax professional about your specific timeline.
Your beneficiary classification is determined at the time of the original owner's death. It does not change later.
For the full classification breakdown: Inherited IRA RMD rules
The 10-Year Rule: Your Timeline
If you're a designated beneficiary who inherited after December 31, 2019, the entire inherited IRA must be emptied by December 31 of the year containing the 10th anniversary of the owner's death.
The clock starts the year after the owner died. If your parent died in 2024, year 1 is 2025, and your deadline is December 31, 2034.
Two things that trip people up:
The clock was not paused during the IRS waiver years. From 2021 through 2024, the IRS waived penalties for beneficiaries who didn't take annual distributions under the 10-year rule while the final regulations were being drafted. But those years still count toward your 10. If the owner died in 2020, your deadline is still December 31, 2030 — not 2034.
The 10-year deadline is not a suggestion. Any balance remaining in the account after December 31 of year 10 is subject to the 25% excise tax. There is no extension.
For the complete walkthrough: The 10-year rule explained
Non-spouse beneficiary inherited IRA decision flowchart showing the RBD fork and 10-year timeline
Annual RMDs: Required or Not?
This is the question that caused four years of confusion — and it's the one we see more than any other from non-spouse beneficiaries. The IRS finalized the answer in July 2024, and it's now fully enforced.
It hinges on one fact: had the original owner reached their Required Beginning Date (RBD)? The RBD is April 1 of the year after the owner reached RMD age (73 under current rules).
| Original Owner Died... | Annual RMDs in Years 1–9? | Year 10 |
|---|---|---|
| Before their RBD (hadn't started RMDs) | No — withdraw on any schedule you choose | Full balance must be out by Dec. 31 of year 10 |
| After their RBD (had started or should have started RMDs) | Yes — annual distributions required, based on your life expectancy | Full balance must be out by Dec. 31 of year 10 |
| Roth IRA (any age at death) | No — Roth owners are always treated as dying before RBD | Full balance must be out by Dec. 31 of year 10 |
If you don't know whether the original owner had reached their RBD, ask the custodian that holds the account. This single fact determines your entire distribution schedule.
How Your RMD Is Calculated
If annual RMDs are required (owner died after their RBD), the calculation uses the IRS Single Life Expectancy Table (Table I) from Publication 590-B.
Inherited IRA RMD = Prior year-end balance (Dec. 31) ÷ Your life expectancy factor
The factor is based on your age in the year after the owner's death. You look it up once, then subtract 1.0 each subsequent year. You don't re-look-up the table annually — you reduce last year's factor by 1.
This means the factor shrinks each year, and the required withdrawal gradually increases — even as the account balance may be declining.
If annual RMDs are not required (owner died before their RBD), there is no annual calculation. You can take as much or as little as you want in any given year, as long as the account is empty by the end of year 10.
For a detailed walkthrough of the table and the math: Inherited IRA RMD tables explained
Example: Tom Inherits an IRA (Owner Died Before RBD)
Tom is 48. His father, Richard, died in November 2025 at age 70 — before reaching RMD age (73). Richard had a Traditional IRA with a balance of $320,000.
Tom is a designated beneficiary (adult child), so the 10-year rule applies. His clock starts in 2026, and the account must be empty by December 31, 2035.
Because Richard died before his Required Beginning Date, Tom is not required to take annual distributions in years 1 through 9. He has full flexibility on timing.
Here's what Tom's options look like:
| Strategy | How It Works | Consideration |
|---|---|---|
| Spread it out | Withdraw roughly $32,000–$40,000 per year over 10 years | Keeps each year's taxable income lower; may stay in a lower bracket |
| Back-load it | Take little or nothing in early years, larger withdrawals later | Lets the account grow longer; but larger withdrawals may push into higher brackets |
| Empty it early | Withdraw everything in years 1–3 | Simplest, but concentrates taxable income; likely the most expensive approach |
| Match to income | Withdraw more in low-income years, less in high-income years | Requires tax planning; most tax-efficient if done well |
Tom's best move depends on his other income, his tax bracket, and his financial goals — this is where a CPA earns their fee. SimpleRMD can calculate the required distribution and generate a report to share with a tax professional, but the strategy of when to withdraw is a tax planning decision we don't make. For more on how inherited IRA distributions affect your taxes: Tax on inherited IRA RMDs
Want to see your timeline? Try the inherited IRA calculator — free, no signup required.
What You Can and Can't Do with an Inherited IRA
This section exists because the most common mistakes non-spouse beneficiaries make are about what they assume they can do.
You must retitle the account. An inherited IRA must be held in the deceased owner's name, with you listed as beneficiary — for example, "Richard Doe IRA (deceased 11/15/2025) FBO Tom Doe, beneficiary." Your custodian will handle the retitling, but make sure it's done correctly. An improper retitling can be treated as a full taxable distribution.
You cannot roll it into your own IRA. This is the single biggest mistake non-spouse beneficiaries make. Only surviving spouses can roll an inherited IRA into their own account. If you move the funds into your personal IRA, the IRS treats it as a taxable distribution of the entire balance — plus, if you're under 59½, you'll owe the 10% early withdrawal penalty on top of it.
You cannot make contributions. An inherited IRA is a distribution-only account. No new money can go in.
You can split the account among multiple beneficiaries. If the IRA was left to more than one person (e.g., three siblings), each share can be separated into its own inherited IRA. The rules then apply independently to each beneficiary based on their own classification and age. The split should be completed by December 31 of the year after the owner's death.
You can aggregate inherited IRAs from the same decedent. If you inherited multiple IRAs from the same person, you calculate each RMD separately but can take the combined total from just one of those accounts. This only works for inherited IRAs from the same individual — you cannot aggregate across different decedents.
You can name a successor beneficiary. But your successor inherits whatever remains of your distribution timeline — they don't get a new 10-year clock. If you die in year 6, your beneficiary must empty the account by the end of your original year 10.
Exceptions: When the 10-Year Rule Doesn't Apply
A small number of non-spouse beneficiaries qualify as Eligible Designated Beneficiaries (EDBs) and may use life expectancy-based distributions instead of the 10-year rule. The qualifying categories:
Minor child of the deceased. The stretch applies until the child reaches age 21 (not 18). At that point, the 10-year clock starts — measured from the year they turn 21, not from the year the owner died. This exception applies only to the deceased's own child, not grandchildren, stepchildren, or other minors.
Disabled individual. Must meet the IRS definition under IRC §72(m)(7). Requires documentation. The life expectancy stretch continues for the beneficiary's lifetime.
Chronically ill individual. Must meet the definition under IRC §7702B(c)(2). Similar to the disability exception — the stretch continues for life.
Person not more than 10 years younger than the deceased. A sibling close in age, for example. The stretch is available for the beneficiary's lifetime.
If you think you qualify as an EDB, confirm your status with a tax professional before relying on the stretch. The documentation requirements matter, and the consequences of getting the classification wrong — taking too little, too late — can be expensive.
For more on how EDB status interacts with the 10-year rule: Inherited IRA RMD rules
Common Mistakes
Rolling the inherited IRA into your own account. This is a non-spouse beneficiary's most costly error. The IRS treats it as a full taxable distribution. If you've already done this, talk to a tax professional immediately — there may be a correction window, but it's narrow.
Not knowing whether the original owner had started RMDs. This determines whether you owe annual distributions or have full flexibility. Don't guess. Call the custodian or check whether the owner had reached their Required Beginning Date (April 1 of the year after turning 73).
Assuming the IRS waiver years paused the 10-year clock. They did not. The IRS waived penalties for 2021–2024, but the timeline kept running. If the owner died in 2020, your deadline is December 31, 2030.
Waiting until year 10 to take a large distribution. Even when annual RMDs aren't required, withdrawing the full balance in a single year concentrates taxable income and may push you into a significantly higher bracket. A planned drawdown schedule almost always beats a last-minute lump sum.
Missing the account-splitting deadline. If multiple beneficiaries are named, each share should be separated into its own inherited IRA by December 31 of the year after the owner's death. Missing this deadline can affect how each beneficiary's RMD is calculated.
Assuming an inherited Roth IRA has no rules. The withdrawals are usually tax-free, but the 10-year deadline applies in full. Any balance left past the deadline triggers the same 25% excise tax. See: Roth IRA RMD rules
Frequently Asked Questions
Can I take more than the required minimum?
Yes. You can withdraw any amount above your annual RMD at any time. There's no maximum. The entire distribution is included in your taxable income for the year (unless the original account included after-tax contributions or it's a Roth — see Roth IRA RMD rules).
What if I inherited from someone who died before 2020?
The original "stretch" rules still apply to your account — life expectancy-based distributions over your own lifetime. The SECURE Act's 10-year rule does not apply retroactively. See: Legacy stretch IRA schedules
I inherited multiple IRAs from the same parent. Do I calculate separately?
Yes — calculate each RMD independently. But you can take the combined total from just one of those inherited accounts, as long as they're all inherited from the same person. You cannot aggregate across different decedents.
What happens if I miss a distribution?
A 25% excise tax on the shortfall, automatically reducible to 10% if corrected within two years. The IRS may waive the penalty entirely for reasonable cause. See: IRS waiver for missed RMDs
Can I name my own beneficiary on an inherited IRA?
Yes. You can designate a successor beneficiary. However, your successor inherits whatever remains of your distribution timeline — they don't get a new 10-year clock. If you die in year 6 of your 10-year window, your beneficiary must empty the account by the end of your original year 10.
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This article is for informational purposes only and does not constitute tax, legal, or financial advice. IRS rules and tax laws are subject to change. Consult a qualified tax professional or financial advisor for guidance specific to your situation. SimpleRMD is a calculation and tracking tool — not a financial advisory service.
Sources: IRS.gov (Publication 590-B, Pub 590-B PDF, RMD FAQs). IRS Final Regulations T.D. 10001 (July 2024). SECURE Act of 2019 (Pub. L. 116-94). SECURE 2.0 Act of 2022 (Pub. L. 117-328). Rules confirmed current as of February 2026.