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Inherited IRA 10‑Year Rule (2026): What Beneficiaries Must Know

Understand the 10‑year payout rule for inherited IRAs/401(k)s, who must take annual RMDs, exceptions, and tax‑smart withdrawal pacing.

Published on 9/19/2026

Who Is Subject to the 10‑Year Rule?

Most non‑spouse designated beneficiaries must empty the account by the end of year 10. Depending on the decedent’s RMD status, annual RMDs may also be required within that 10‑year window.

Eligible Designated Beneficiaries (EDBs)

  • Surviving spouse
  • Minor child of the decedent (until majority)
  • Disabled or chronically ill person
  • Beneficiary not more than 10 years younger than decedent

EDBs may use life‑expectancy payouts instead of the 10‑year rule.

Withdrawal Pacing

  • Equal annual withdrawals to smooth brackets
  • Front‑loaded in low‑income years
  • Back‑loaded if expecting future deductions (watch for bracket creep)

Tax Planning Tips

  • Coordinate with personal income, capital gains, and deductions
  • Consider Roth conversions in the beneficiary’s own accounts
  • Track basis and keep beneficiary paperwork organized

Tools and Tables

FAQs

Can a spouse avoid the 10‑year rule?

A surviving spouse often has more options, including spousal rollover and treating the IRA as their own, which may allow life‑expectancy payouts.

Do I have to take annual distributions within the 10‑year period?

In some cases (e.g., if the decedent had started RMDs), yes. The IRS guidance has evolved—document annual withdrawals when required.

Key Takeaways

  • Start contributing to retirement accounts as early as possible to benefit from compound growth
  • Review your retirement plan annually to stay on track with your goals
  • Consider tax-advantaged accounts like 401(k) and IRA to maximize savings

How to Use This Calculator

  1. Enter your financial details in the fields above
  2. Adjust parameters to match your specific situation
  3. Review the calculated results and projections
  4. Compare different scenarios to find the optimal strategy

Tips for Better Results

  • Use realistic estimates based on current market conditions
  • Update your calculations regularly as your situation changes
  • Consider consulting a financial advisor for complex decisions
  • Remember that calculator results are estimates, not guarantees
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