Overview — How the SECURE Act Changed Everything
Before December 31, 2019, inheriting an IRA was relatively simple: most beneficiaries could "stretch" distributions over their own lifetime, allowing decades of continued tax-deferred growth. The SECURE Act of 2019 ended that for most beneficiaries, and SECURE 2.0 added further complexity with annual distribution requirements.
The rules that apply to you depend on three factors:
- When you inherited the account — before 2020, in 2020–2022, or 2023 and later
- Your relationship to the original owner — spouse, Eligible Designated Beneficiary, or other
- Whether the original owner had started RMDs — pre or post their Required Beginning Date
Inherited before 2020: Grandfathered stretch IRA rules apply — annual distributions over your life expectancy.
Inherited 2020–2022: SECURE 1.0 rules — 10-year rule for most non-EDBs, annual RMDs required from 2025 if owner died post-RBD.
Inherited 2023+: SECURE 2.0 final regulations — same 10-year framework with annual RMD requirements fully in effect.
Surviving Spouse Rules
Surviving spouses have more options than any other beneficiary — they are the only beneficiaries who can treat an inherited IRA as their own.
- Treat as own IRA — The spouse rolls the inherited IRA into their own IRA (or treats it as their own). RMDs are then calculated based on the spouse's own age and Required Beginning Date. This is almost always the most favorable option for younger surviving spouses because it maximizes deferral.
- Life expectancy method — The spouse remains as beneficiary and takes annual distributions based on their own age from Table I. This can be useful if the spouse is older than the deceased and needs income immediately.
- SECURE 2.0 addition — A surviving spouse who treats the inherited IRA as their own can also use the deceased owner's age if the owner was younger, potentially reducing RMDs during early years.
Eligible Designated Beneficiaries (EDBs)
The SECURE Act created a special category — Eligible Designated Beneficiaries — who are exempt from the 10-year rule and may continue to use life expectancy distributions. There are exactly five EDB categories:
| EDB Category | Distribution Method | Key Rule |
|---|---|---|
| Surviving spouse | Treat as own, life expectancy, or 10-year | Most flexible of all beneficiaries |
| Minor child of the owner | Life expectancy until age of majority | 10-year rule kicks in after majority (typically age 21) |
| Disabled individual | Life expectancy over lifetime | Must meet IRC §72(m)(7) definition |
| Chronically ill individual | Life expectancy over lifetime | Must meet §7702B(c)(2) definition |
| Not more than 10 years younger | Life expectancy over lifetime | Age difference is the owner's age minus beneficiary's age |
A minor child EDB can use the life expectancy method only until reaching the age of majority — generally age 21 per current IRS guidance. At that point, a 10-year distribution period begins, and the entire remaining balance must be distributed within 10 years of reaching majority.
Non-EDB Beneficiaries — The 10-Year Rule
Most non-spouse beneficiaries who inherit after December 31, 2019 are subject to the 10-year rule: the entire inherited IRA must be distributed by December 31 of the tenth year following the original owner's death.
What was unclear for years — and what the IRS finally clarified in 2024 final regulations effective 2025 — is whether annual minimum distributions are required within that 10-year period. The answer depends on whether the original owner had started RMDs:
- Owner died before their Required Beginning Date: No annual RMDs required in years 1–9. The beneficiary may take distributions on any schedule, as long as the full account is emptied by year 10.
- Owner died on or after their Required Beginning Date: Annual minimum distributions ARE required in years 1–9, calculated using the beneficiary's life expectancy from Table I. The full account must still be distributed by year 10.
Find Your 10-Year Rule RMD
Our calculator handles all scenarios — pre and post-RBD deaths, EDB elections, and annual distribution calculations under the final SECURE 2.0 regulations.
Calculate Your Inherited IRA RMD →Pre-2020 Inherited IRAs — Grandfathered Stretch Rules
If you inherited an IRA before January 1, 2020, you are grandfathered under the pre-SECURE Act rules. The 10-year rule does not apply to you. Instead, you take annual required minimum distributions over your own life expectancy using IRS Table I.
The factor is set in your first distribution year based on your age that year, then reduced by 1.0 each subsequent year. This is called the IRS decrement method, and it differs from the approach some financial institutions use (annual recalculation from current age), which produces a slightly different factor.
Important: You must take annual RMDs every year without exception. Missing a year as a grandfathered stretch IRA beneficiary triggers the 25% excise tax and could jeopardize your grandfathered status.
Successor Beneficiaries
When an inherited IRA beneficiary dies before fully distributing the account, the next beneficiary is called a successor beneficiary. Successor beneficiaries face the strictest rules:
- They are never Eligible Designated Beneficiaries, regardless of relationship
- The 10-year rule always applies
- The 10-year clock runs from the first beneficiary's death, not the original owner's death
- Annual RMDs in years 1–9 are required if the original owner died post-RBD
Inherited Roth IRA Rules
Inherited Roth IRAs are subject to the same distribution framework as inherited traditional IRAs — 10-year rule, stretch IRA (if pre-2020), EDB rules, etc. The critical difference is that qualified distributions are generally income tax-free.
The 10-year deadline still applies, and unlike traditional inherited IRAs where tax deferral makes early distribution costly, the tax-free nature of Roth accounts gives beneficiaries more flexibility in timing distributions.
Transferring an Inherited IRA to a New Custodian
When an inherited IRA transfers to a new custodian — whether through an ACAT transfer or direct rollover — the receiving institution needs to reconstruct the distribution history from scratch. They need to know:
- The original owner's birth date and date of death
- Whether the original owner had reached their Required Beginning Date
- The first beneficiary's birth date and year of inheritance
- For successor beneficiaries: the first beneficiary's death year
This information determines the correct rule era, applicable table, current life expectancy factor, and remaining distribution period. Our calculator includes a transfer-in mode specifically designed for this scenario.