Non-spouse beneficiary
Non-Spouse Inherited IRA Rules
Most non-spouse beneficiaries must empty an inherited IRA by the end of year 10. If the owner died on or after the required beginning date, annual RMDs generally also apply during years 1–9.
What to know first
- The year of death is year zero; the account-emptying deadline is December 31 of year 10.
- A post-RBD traditional IRA generally requires annual beneficiary RMDs during the 10-year window.
- A pre-RBD traditional IRA generally has no annual amount during the window, only the year-10 deadline.
- Eligible designated beneficiaries may qualify for life-expectancy payments instead.
Before versus after the required beginning date
When the owner died before the required beginning date, a designated beneficiary subject to the 10-year rule can generally choose the timing of withdrawals as long as the account is empty by the deadline.
When the owner died on or after the required beginning date, the final regulations generally require annual RMDs in years 1–9 as well as full distribution by the end of year 10.
Who can avoid the standard 10-year schedule
Eligible designated beneficiaries include a surviving spouse, the owner’s minor child, a disabled or chronically ill person, and a person not more than 10 years younger than the owner. Different life-expectancy or transition rules can apply.
An estate, charity, or some trusts may not be a designated beneficiary at all. Those cases can use a five-year rule or the owner’s remaining life expectancy, depending on whether death occurred before or after the required beginning date.
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 10-year rule mean 10 equal withdrawals?
No. It is an account-emptying deadline. Annual minimums may apply after a post-RBD death, but withdrawals do not have to be equal.
Can a non-spouse beneficiary roll the IRA into their own IRA?
No. A non-spouse beneficiary generally must keep the account as an inherited IRA and may use only a direct trustee-to-trustee transfer to another inherited IRA.
Sources
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