Minor child beneficiary
Inherited IRA Rules for a Minor Child
A minor child of the original account owner is an eligible designated beneficiary and can stretch annual required distributions over their own life expectancy — but only until they reach age 21. At that point the 10-year rule begins, so the account must be fully distributed by the end of the tenth year after the child turns 21.
What to know first
- Only a minor CHILD of the decedent qualifies — grandchildren and other minors do not get this exception.
- The stretch uses the Single Life Table factor for the child’s age, reducing by 1 each year, the same as any other EDB.
- Turning 21 is the trigger, not high school or college graduation, and not a state’s age of majority.
- The 10-year countdown starts the year the child turns 21, so the account must be empty by December 31 of the year the child turns 31.
Two phases: stretch, then 10-year countdown
From the year after the owner’s death until the year the child turns 21, the minor child (through a guardian or custodian) takes an annual RMD using the IRS Single Life Table factor for their age, reduced by 1 each subsequent year — the same mechanics as any other eligible designated beneficiary’s life-expectancy stretch.
The year the child turns 21, the special exception ends and the standard SECURE Act 10-year rule begins. The account must be fully distributed by December 31 of the tenth year after that — so a child who inherits at age 5 and turns 21 at 21 has roughly 16 additional years of stretch-then-10-year distributions, in total, before the account must be empty.
What happens at age 21
No distribution is forced at exactly age 21 beyond that year’s regular annual amount — the 10-year clock simply starts running. Whether annual RMDs continue to be required during the 10-year window depends on whether the original owner had already reached their required beginning date before death, the same rule that applies to any other 10-year-rule beneficiary.
Custodians and guardians should track the child’s 21st birthday carefully: missing the shift from the stretch schedule to the 10-year deadline is a common, and penalized, error.
Model your inherited IRA deadline
Use the inherited IRA calculator to compare the 10-year rule, annual beneficiary RMDs, and eligible designated beneficiary schedules.
Open the inherited IRA calculatorFrequently asked questions
Does the minor-child exception apply to a grandchild?
No. Only a minor child of the original IRA owner qualifies for this specific EDB category. A grandchild who inherits directly (not through a trust for a minor child) is generally a non-eligible designated beneficiary subject to the ordinary 10-year rule from the start.
What age counts as "no longer a minor" for this rule?
Age 21, regardless of the age of majority in the beneficiary’s state. This is a federal tax-law definition set specifically for this exception, not a state law age.
Sources
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