Question 1

What is the 10-year rule for inherited IRAs?

Accepted Answer

For a designated beneficiary who is subject to the 10-year rule, the inherited account generally must be emptied by December 31 of the tenth year after the year of the owner’s death. The IRS says the beneficiary’s status, the owner’s date of death, and whether the owner had reached the required beginning date can affect the applicable distribution requirements.

Question 2

Who can still use life-expectancy distributions for an inherited IRA?

Accepted Answer

The IRS identifies eligible designated beneficiaries as a surviving spouse, a minor child of the account owner, a disabled or chronically ill individual, and an individual not more than ten years younger than the owner. Their available options can differ from those for other non-spouse beneficiaries, so the beneficiary designation and account facts matter.

Question 3

Can I use this inherited Roth IRA RMD calculator?

Accepted Answer

This calculator can provide an estimate for an inherited Roth IRA, but the distribution framework depends on the beneficiary and the owner’s date of death. The IRS says inherited Roth IRAs generally follow the same RMD requirements as inherited traditional IRAs, while the tax treatment of a withdrawal can depend on the Roth account’s five-year holding period.

What will my heirs have to withdraw from an inherited IRA?

An inherited IRA RMD calculator for a planning estimate

What people ask about this

A calculator gives you a number. It can’t tell you whether to act on it.