If you inherited an IRA after 2019, you must distribute all remaining funds by December 31 of the tenth calendar year following the original owner's death—a deadline the IRS finalized in July 2024. The path to that date depends on whether the original owner had begun taking required distributions before death, and missing the deadline triggers a 25% excise tax on whatever remains plus ordinary income tax on the entire balance.
The 10-year rule applies to most non-spousal beneficiaries of IRAs inherited after 2019. Unlike the previous rule, which allowed stretching distributions over the beneficiary's lifetime, the 10-year window is now a hard stop. This article lays out the dates that matter, the documents you'll need, and the decisions that affect your tax bill.
Table of Contents
- The 10-Year Deadline and Your Key Dates
- Annual Required Minimum Distributions—Who Must Take Them
- Documentation and Claiming Your Inherited IRA
- Tax Consequences and the Year-10 Tax Spike
- Special Cases—Roth IRAs and Eligible Designated Beneficiaries
- Your Action Checklist
- Frequently Asked Questions
The 10-Year Deadline and Your Key Dates
Your deadline is December 31 of the tenth calendar year after the original owner's death. If the owner died in 2025, your deadline is December 31, 2035. The IRS Publication 590-B confirms this is a hard deadline: any balance remaining on December 31 of year 10 counts as distributed income to you that tax year, triggering both ordinary income tax and a 25% excise tax on the undistributed amount.
The first date you need to identify is the original owner's Required Beginning Date (RBD)—April 1 of the year after they turned 73. If the owner had already reached this date when they died, your withdrawal timeline has additional annual requirements. If they died before reaching RBD, you have more flexibility. According to the July 2024 final IRS regulations, the distinction between these two scenarios determines whether you must take money out each year or only by year 10.
Annual Required Minimum Distributions—Who Must Take Them
If the original owner had reached their Required Beginning Date before death, you must take annual required minimum distributions (RMDs) in years 1 through 9. These distributions are calculated using IRS Single Life Table life expectancy factors reduced by one each year. You can withdraw more than the required minimum in any year, but you cannot skip a year or take less than the RMD without triggering the 25% excise tax. If the original owner died before their Required Beginning Date, you have no annual RMD requirement.
You can withdraw any amount during years 1 through 9, provided the account is empty by December 31 of year 10. This flexibility lets you manage the size of your tax hit by spreading distributions across the decade or taking money as needed. The IRS issued no penalty relief for 2025 or 2026, so missed annual distributions trigger the full 25% excise tax. Under SECURE Act 2.0, you can reduce the penalty to 10% if you correct the shortfall within two years, but that window closes fast.
Documentation and Claiming Your Inherited IRA
To claim your inherited ira, the financial institution will ask for a certified copy of the original owner's death certificate, your social Security number, date of birth, and date of death. Each beneficiary must complete a separate IRA Beneficiary Claim Request form.
If the IRA is being distributed to a trust or entity rather than directly to you, you'll also need certified appointment documents for the executor or trustee and relevant trust or entity paperwork, including the entity name, formation date, current trustees' names, and authorized representative signatures. The financial institution will return original documents to the registered address. Keep copies of everything you submit—the death certificate, claim forms, and beneficiary documentation—because you may need to produce them again when calculating RMDs or proving your claim to the IRS.
Tax Consequences and the Year-10 Tax Spike
Every dollar you withdraw from a traditional inherited IRA is ordinary income in the year you withdraw it. This means your distributions are taxed at your marginal tax rate, and large withdrawals in a single year can push you into a higher bracket. If any balance remains in the account at December 31 of year 10, it is treated as distributed to you that year, creating a potential substantial tax bill in addition to the 25% excise tax on the undistributed amount.
📨 Get Free Medicare Guides Alerts
Free · No spam · Unsubscribe anytime
For this reason, many beneficiaries spread distributions evenly across all 10 years rather than taking everything at the end. If you have other significant income that year, bunching your inherited IRA distributions into the final year could create a six-figure or higher tax liability. Working with a tax professional to model different withdrawal schedules before year 10 is often worth the cost.
Special Cases—Roth IRAs and Eligible Designated Beneficiaries
Inherited Roth IRAs have no annual RMD requirement during the 10-year window because the original owner never had RMDs during their lifetime. However, the entire balance must still be distributed by December 31 of year 10. The advantage: withdrawals from inherited Roth IRAs are tax-free, so you can stretch distributions across the decade without worrying about income-tax brackets.
Spouses, minor children (until age 21), beneficiaries within 10 years of the owner's age, and chronically ill or disabled beneficiaries are exempt from the 10-year rule and may extend distributions over their own lifetimes. These Eligible Designated Beneficiaries require proper designation and documentation to claim the longer timeline. A spouse can also treat the inherited IRA as their own, bypassing the 10-year rule entirely. If you think you may qualify, verify your status with the financial institution holding the IRA before taking any distributions, because the choice of election can be difficult or impossible to reverse.
Your Action Checklist
.
- Obtain the original owner's death certificate (certified copy) and identify their Required Beginning Date.
- Determine your deadline: December 31 of the tenth calendar year after their death.
- Verify whether annual RMD distributions are required (they are if the owner had reached RBD).
- Complete the IRA Beneficiary Claim Request form and submit required documentation.
- Calculate your annual RMD for each of years 1–9 using the IRS Single Life Table, if applicable.
Frequently Asked Questions
Can I roll an inherited IRA into my own IRA?
Only if you were the spouse of the original owner. Non-spousal beneficiaries cannot do a rollover and must use the inherited IRA account.
What if I miss a year's RMD by accident?
You'll owe a 25% excise tax on the undistributed amount. If you correct it within two years, the penalty is reduced to 10% under SECURE Act 2.0.
Does the 10-year rule apply to IRAs inherited before 2020?
No. IRAs inherited before January 1, 2020, follow the older stretch IRA rules, which allow much longer distribution periods for most beneficiaries.
You Might Also Like
- Social Security Benefits 2026 Checklist: Dates, Documents, and Decisions
- IRA for Couples: Survivor Benefits and Shared Decisions
- How to Verify IRA Retirement Planning Claims in 2026: SSA, IRS, and plan documents, Evidence, and Red Flags