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Inherited IRA RMD Calculator

Calculate Required Minimum Distributions for an inherited IRA under the SECURE Act 10-year rule. Plan withdrawals to minimize tax impact.

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The SECURE Act 10-Year Rule

The SECURE Act of 2019 (and SECURE 2.0 in 2022) fundamentally changed inherited IRA rules. Most non-spouse beneficiaries who inherit after January 1, 2020 must empty the entire account within 10 years of the original owner's death. There is no annual RMD requirement during the 10 years, but the entire balance must be distributed by December 31 of the 10th year.

The IRS clarified in 2024 that if the original owner had already begun taking RMDs (generally age 73+), beneficiaries must also take annual RMDs during the 10-year period AND empty the account by year 10. This means you cannot simply wait and take one large distribution in year 10 — you must take at least the minimum each year. Plan your overall retirement withdrawals with our Retirement Drawdown Calculator.

Tax-Smart Withdrawal Strategies

Since inherited IRA distributions are taxed as ordinary income, the key strategy is spreading withdrawals to stay in lower tax brackets. Taking $500,000 in year 10 could push you into the 35% bracket. Taking $50,000/year over 10 years keeps you in the 22-24% range — potentially saving $30,000-$50,000 in taxes. Consider accelerating withdrawals in low-income years (job transition, sabbatical, early retirement) and reducing them in high-income years. Model your bracket impact with our Tax Bracket Calculator and consider Roth conversions to shift future growth to tax-free.

People Also Ask

Who is exempt from the 10-year rule?
Surviving spouses, minor children (until age 21), disabled or chronically ill beneficiaries, and beneficiaries not more than 10 years younger than the decedent. These "Eligible Designated Beneficiaries" can use the stretch IRA method.
Can I do a Roth conversion on an inherited IRA?
No. You cannot convert an inherited IRA to a Roth. However, you can take distributions and then contribute to your own Roth IRA if you have earned income and meet eligibility requirements.
What happens if I miss the 10-year deadline?
A 25% excise tax on the amount that should have been distributed (reduced from the previous 50% penalty under SECURE 2.0). This can be reduced to 10% if corrected within 2 years.