Inherited IRA rules to review in 2026
Steve Hazel · October 14, 2026
The 10-year deadline for annual withdrawals and decisions for beneficiaries
If you inherited an IRA, do not assume that a 10-year deadline lets you leave the account untouched until the final year. Some beneficiaries must take the required minimum distributions annually and empty the account by year 10. Your relationship to the original owner, the account type, and the owner’s date of death determine which rules apply. [1, 3]
This guide focuses on common situations involving individual beneficiaries when the original owner died after 2019. Earlier inheritances, trusts, estates, and successor beneficiaries may be subject to different rules. Start by identifying your situation before choosing a withdrawal amount.
Gather the facts that determine your deadline
Ask the custodian to help you document the original owner’s date of death, the type of IRA, your beneficiary status, and whether the owner died before or on or after their required beginning date. That date is a specific tax rule. It is not always the date the owner happened to take their first withdrawal.
Also obtain the relevant account statements and a record of distributions already taken. If an owner died after their required beginning date, an unfinished distribution for the year of death may need attention. [1] Keeping these details together makes it easier for your custodian and tax professional to agree on the schedule.
Understand the two parts of the 10-year rule
Most adult children who are designated beneficiaries and do not qualify for an exception must empty an inherited IRA by December 31 of the tenth year after the original owner’s death. The final regulations also require annual distributions in certain cases when the owner died on or after their required beginning date. [2, 3]
| Common situation | Years before year 10 | Final deadline |
|---|---|---|
| Adult child under the 10 year rule and owner died before the required beginning date | Generally no annual minimum under this rule | Empty the account by the end of year 10 |
| Adult child under the 10 year rule and owner died on or after the required beginning date | Annual minimum distributions generally apply | Empty the remaining account by the end of year 10 |
| Surviving spouse or another eligible designated beneficiary | Different options or exceptions may apply | Confirm the rule for that beneficiary |
The table is a simplified guide to traditional IRAs and assumes an individual named beneficiary. It is not a substitute for correctly classifying the account. Certain disabled or chronically ill beneficiaries, the owner’s minor child, and people not more than 10 years younger than the owner can qualify for exceptions. [2] A minor child’s exception ends at age 21, when a 10-year period begins.
Put the dates on a calendar
Consider a hypothetical adult child who inherited a traditional IRA from a parent who died in 2021 after the required beginning date. Assume the child is subject to the 10 year rule and has no applicable exception. The final deadline would be December 31, 2031. The account would also generally require an annual minimum distribution in 2026. [3] The IRS waived penalties for missed annual minimums in 2021 through 2024 while the rules were being finalized, so those years generally do not need to be made up. Annual minimums apply beginning in 2025.
Have the custodian calculate the amount using the proper account balance and life expectancy factor. Do not divide the balance by the years remaining and assume that is the required minimum. You can separately evaluate whether withdrawing more than the minimum makes sense for your tax situation.
Choose withdrawals with your broader tax picture in mind
A distribution that satisfies the rules may still be poorly timed for your household. Compare the inherited account with wages, business income, your own retirement distributions, and any planned sale of investments or property. A year with lower other income may present a different opportunity than a year with a large bonus.
Ask your tax professional to compare several schedules instead of focusing only on this December. For example, what happens if you take only required amounts now and a much larger amount later? What happens if you spread additional withdrawals across several years? The comparison should include cash needs, taxes, and uncertainty about future income.
Keep an inherited IRA separate from your own IRA
A nonspouse beneficiary generally cannot treat an inherited IRA as their own or use a standard 60 day rollover. A direct trustee to trustee transfer may be possible when the inherited account remains properly titled. Surviving spouses have additional choices that require their own review. [1]
Before moving an account, have the receiving institution confirm the registration and transfer method in writing. If you inherited a Roth IRA, ask about the beneficiary withdrawal deadline and any applicable five-year tax rule. A Roth IRA owner is treated as dying before the required beginning date, so a beneficiary under the 10-year rule generally has no annual minimum in years 1 through 9 but must still empty the account by the end of year 10. Inherited Roth accounts should not be treated as if they have no distribution rules.
Your 2026 inherited IRA checklist
☐Confirm the original owner’s death date and required beginning date.
☐Identify whether you are a spouse, an eligible designated beneficiary, or another beneficiary.
☐Record the final distribution deadline and whether a 2026 minimum applies.
☐Confirm the required amount and withdrawals already completed.
☐Compare additional withdrawals with your projected income and taxes.
☐Check transfer instructions and allow time for custodian processing before year-end.
Questions people often ask:
Does everyone have to empty an inherited IRA in 10 years?
No. The beneficiary category, the account, and the timing of the original owner’s death matter. Spouses and certain other beneficiaries can have different options. [2]
Can I withdraw more than the annual minimum?
Yes, but review taxes and cash needs first. A larger withdrawal now does not automatically replace the required minimum for a future year.
What if I think I missed a required withdrawal?
Bring the account history to a tax professional promptly. Ask about correction procedures and any relief that may apply rather than assuming the issue can wait until the final deadline. Beginning with 2025, a missed required amount can trigger a 25% excise tax, which may be reduced to 10% if corrected within the allowed correction window.
Turn the account into a coordinated plan
If an inherited account has left you uncertain about the next step, schedule a conversation with Steve Hazel at the Magnificent Life Team. Bring the beneficiary paperwork and account statements so the relevant questions can be organized with your tax professional.
Schedule a conversation with Steve Hazel
Based in Tempe, Arizona, and serving clients nationwide.
Educational information only. This article does not provide personalized investment, tax, or legal advice. Tax treatment depends on individual circumstances and current law. Consult the appropriate professionals before acting.
Sources for the article:
Sources checked September 23, 2026. Links open the original publications.
[1] Internal Revenue Service. Publication 590 B for 2025
[2] Internal Revenue Service. Retirement plan and IRA required minimum distributions FAQs
[3] Internal Revenue Service. Internal Revenue Bulletin 2024 33 including TD 10001. Final rules generally apply beginning in 2025.
Questions about your own plan?
Talk to the Magnificent Life Team team