Fee-only advisors specializing in inherited IRAs and the SECURE 10-year rule.
The 2020 SECURE Act eliminated the stretch IRA for most non-spouse beneficiaries — now requiring the entire inherited IRA to be depleted within 10 years. For high-income inheritors, this can create a compressed tax bomb. Planning the 10-year withdrawal schedule to minimize bracket impact is substantial advisor work. Spousal inheritors have differen
What our matched specialists handle
- I inherited my parent's IRA — do I have 10 years or 5?
- Withdraw strategy: equal payments, front-load, back-load, or Roth convert?
- Spousal rollover vs inherited IRA — which?
- Inherited Roth IRA — still 10-year rule?
- RMDs during the 10-year window — do I owe annual minimums or just the full amount by year 10?
- Multiple inheritors on one account — how does splitting work?
Tools & guides
Inherited IRA 10-Year Withdrawal Optimizer
Compare equal, front-loaded, and back-loaded withdrawal strategies across your 10-year SECURE window.
Inherited IRA Annual RMD Calculator (2026)
If the original owner was past their Required Beginning Date, you owe annual distributions — not just full depletion by year 10. Enter your balance, birth year, and the death year to compute your 2026 RMD and see the full projected schedule.
Inherited IRA Complete Guide
Detailed framework — rules, tradeoffs, and common mistakes.
Surviving Spouse Inherited IRA: Your 4 Options
Surviving spouses have options no other beneficiary gets — including rolling into your own IRA and an EDB stretch with no 10-year deadline. If you're under 59½, the decision about when to roll over can save you the 10% early withdrawal penalty. Full options guide with decision matrix.
Spousal Rollover vs. Inherited IRA
Surviving spouse? Here's exactly when to roll over and when to keep the inherited IRA — with four decision scenarios.
SECURE Act 10-Year Rule Explained
Who's subject, who's exempt, and whether you owe annual RMDs — the question T.D. 10001 finally answered in 2024.
Roth Conversion Coordinator
Model how coordinating inherited IRA withdrawals with Roth conversions from your own IRA changes total taxes over the 10-year SECURE window.
Inherited IRA Tax Strategies
Six ways to reduce the federal tax hit over your 10-year window — bracket targeting, Roth coordination, QCDs, income-gap front-loading, and more.
Inherited IRA RMD Rules
Do you owe annual minimums during the 10-year window, or just depletion by year 10? The answer depends on whether the original owner had started RMDs — finalized by IRS T.D. 10001 in 2024.
Multiple Beneficiaries on an Inherited IRA
Two siblings inheriting the same IRA face a September 30 disclaimer deadline and a December 31 separate account deadline. Miss either and you lose independent RMD calculation.
Successor Beneficiary Rules
Inherited an IRA from someone who was already in the 10-year window? The clock doesn't reset. Successor beneficiaries inherit the remaining years — sometimes as few as 1 or 2.
How to Open an Inherited IRA
Step-by-step guide to setting up the account correctly — title format, direct transfer rules, key deadlines, and the mistakes that trigger an unexpected taxable distribution.
Missed an Inherited IRA RMD?
The 2021–2024 IRS penalty waivers are over. Here's how to calculate your shortfall, file Form 5329, and request a reasonable-cause waiver — before the 25% excise tax compounds the problem.
Non-Spouse Inherited IRA Rules
Children, siblings, grandchildren, and other non-spouse beneficiaries face the SECURE Act 10-year rule. Whether annual RMDs are required during that window depends on one fact about the original owner.
Year-of-Death RMD for Inherited IRAs
When an IRA owner dies before taking their full annual RMD, the remaining amount becomes the beneficiary's obligation — due by December 31 of the year of death. Here's how to calculate it and what to do if it was missed.
Minor Child Inherited IRA Rules
A minor child gets EDB stretch distributions until age 21 — then a 10-year depletion window begins. Whether annual RMDs are required during that 10-year phase depends on whether the original owner had started RMDs. Full two-phase breakdown.
Grandchild Inherits an IRA: The EDB Misconception Explained
Grandchildren are NOT eligible designated beneficiaries — even minor grandchildren. Unlike minor children of the IRA owner, grandchildren face the full SECURE Act 10-year rule. Covers the kiddie tax trap for young beneficiaries, annual RMD obligations when grandparent was post-RBD, and the narrow disabled/chronically-ill exception.
Disclaiming an Inherited IRA
You don't have to accept what you inherited. A qualified disclaimer under IRC § 2518 lets you refuse all or part of an inherited IRA — but you have 9 months from the date of death, and the decision is irrevocable. Rules, deadline, and when it makes strategic sense.
IRA Left to an Estate or Charity
When no individual is named as IRA beneficiary — or the estate or a charity inherits — the SECURE Act 10-year rule doesn't apply. Instead: the 5-year rule (pre-RBD owner) or ghost life expectancy (post-RBD). Implications for executors and individual heirs receiving IRA assets through an estate.
State Taxes on Inherited IRA (2026)
Two separate state taxes can hit an inherited IRA: income tax on distributions (varies by state — 13 states exempt) and inheritance tax on the account balance (5 states: KY, MD, NE, NJ, PA). Know your combined exposure before you withdraw.
Inherited Before 2020? Your Rules Are Different
The SECURE Act does not apply to IRAs inherited from owners who died before January 1, 2020. You have stretch IRA rights — annual RMDs over your own life expectancy, no 10-year depletion deadline. Includes the mandatory 2022 life expectancy table reset and the waivers that did not cover you.
Inherited IRA and Medicare IRMAA
Large inherited IRA distributions count as MAGI and can spike Medicare Part B and Part D premiums — sometimes adding $5,800+ per year. The hit lands two years after the distribution, not the year you took it. How to plan the 10-year withdrawal window to minimize Medicare premium exposure.
Inherited IRA Creditor Protection
The Supreme Court ruled unanimously in Clark v. Rameker (2014) that inherited IRAs are not protected from creditors in bankruptcy — unlike your own IRA, which is exempt up to $1,711,975. Eight states provide state-law protection; the other 42 do not. What this means for business owners, professionals, and anyone with lawsuit exposure.
Inherited IRA After-Tax Basis (Non-Deductible Contributions)
If the IRA you inherited had non-deductible contributions, part of it was already taxed — and you can recover that basis tax-free. Most beneficiaries never claim it and overpay by thousands. How the Form 8606 calculation works for inherited accounts, why the inherited IRA must be calculated separately from your own, and what to do if the decedent never filed Form 8606.
Can You Convert an Inherited IRA to a Roth IRA?
Non-spouse beneficiaries cannot. IRC § 408(d)(3)(C) prohibits inherited-IRA rollovers — and a Roth conversion is a rollover. Surviving spouses can convert after a spousal rollover. Non-spouses have an indirect alternative: coordinate Roth conversions from their own IRA while taking inherited distributions across the 10-year window.
Just Inherited an IRA? Your First 30 Days Action Plan
Don't take a distribution yet. Here's what to do first: identify your beneficiary category, flag the 9-month disclaimer deadline, address any year-of-death RMD obligation, and establish separate accounts if there are multiple beneficiaries — all before making a single withdrawal decision.
Inherited IRA Early Withdrawal — No 10% Penalty
Under 59½ and worried about the early withdrawal penalty? It doesn't apply to inherited IRAs. The death exception under IRC § 72(t)(2)(A)(ii) permanently exempts inherited IRA distributions from the 10% penalty — at any age. Ordinary income tax still applies, and the SECURE Act's 10-year deadline still controls your timeline, but the penalty is not a factor.
Inherited IRA Investment Strategy
How to invest the account during the 10-year window — why the bucket approach works better than a static allocation, how the mandatory distribution endpoint changes sequence-of-returns risk, and why over-conservatism is as costly as over-aggression.
Inherited IRA and Social Security Benefit Taxation
Every dollar you withdraw from an inherited traditional IRA raises your provisional income — and can make up to 85% of your Social Security benefits taxable at your marginal rate. The effective marginal rate on inherited IRA distributions in the 85% SS zone can exceed 40% for a 22% bracket taxpayer.
Inherited IRA from a Parent: Rules, Deadlines & Tax Planning
The most common scenario — adult child inheriting at peak earnings. Whether annual RMDs are required depends on when your parent crossed their Required Beginning Date. Includes a deadline table by inheritance year and the specific tax trap that hits working-age children hardest.
10 Inherited IRA Mistakes That Cost Beneficiaries Thousands
The most expensive errors: attempting a 60-day rollover (prohibited and fully taxable), skipping annual RMDs after T.D. 10001 ended the waivers, deferring everything to year 10, using the wrong FBO title, and more — plus how to fix each one if you've already made it.
How Much Tax Do You Pay on an Inherited IRA?
Distributions are taxed as ordinary income at your marginal rate — not capital gains. See the 2026 federal bracket math, three worked examples (moderate, large, and year-10 lump sum), and how distribution timing can shift the effective rate by 10–15 percentage points.
The § 691(c) IRD Deduction: Estate Tax Offset Most Beneficiaries Miss
If the decedent's estate paid federal estate tax, you are entitled to an income tax deduction each year you take distributions — worth potentially $100,000+ over a 10-year window on a large inherited IRA. The IRA custodian never reports it; most tax preparers never ask. How to calculate the deduction pool and claim it on Schedule A.
Does an Inherited IRA Get a Step-Up in Basis?
No — and this surprises most beneficiaries. Inherited stocks and real estate get a step-up in basis to FMV at death, so post-death appreciation is taxed at capital gains rates (0–20%). Inherited IRAs get no step-up: every dollar is ordinary income at 22–37%. If you inherited both types, which to spend first matters enormously.
Inherited SEP IRA and SIMPLE IRA Rules
Self-employed individuals and small business owners often die with large SEP or SIMPLE IRAs. Both follow the SECURE Act 10-year rule and T.D. 10001 annual RMD requirements — just like a traditional IRA. One exception: the SIMPLE IRA 2-year transfer restriction affects portability if the deceased had the account for under 2 years.
Inherited 403(b) Rules: 10-Year Rule and Rollover to Inherited IRA
Teachers, hospital workers, and nonprofit employees often die with large 403(b) accounts. The SECURE Act 10-year rule applies — and non-spouse beneficiaries can roll to an inherited IRA via direct transfer (plans required to offer this since 2010). Key difference: TIAA and insurance annuity contracts don't behave like IRAs, and the pre-1987 balance exemption ends at death.
Inherited 457(b) Plan Rules: Governmental vs. Non-Governmental
The critical split: a governmental 457(b) (state, county, public school) can be rolled to an inherited IRA and follows the SECURE Act 10-year rule. A non-governmental 457(b) (hospital, foundation, charity) cannot be rolled to an IRA — assets stay in the plan, and any attempted rollover creates a § 4973 excise tax. Covers distribution rules, the no-10%-penalty advantage, and what to do when the plan won't cooperate.
Charitable Remainder Trust (CRT) Strategy for Large Inherited IRAs
A CRT can replace the lifetime income stream the SECURE Act's 10-year rule eliminated — but the mechanics are widely misunderstood. You cannot transfer an IRA directly to a CRT. The economics require large balances ($500K+), high marginal brackets, and genuine charitable intent. Here's when it actually works, the full tax math, and the trade-offs advisors often gloss over.
QCD from Inherited IRA: Tax-Free Distributions for Beneficiaries 70½+
Inherited IRA beneficiaries who are 70½ or older can send up to $111,000/year (2026) directly to charity and exclude every dollar from AGI — satisfying annual RMD obligations, preventing IRMAA surcharges, and reducing Social Security benefit taxation. The beneficiary's age controls, not the decedent's.
Inherited IRA 10-Year Distribution Strategy: Equal, Front-Loaded, Back-Loaded, or Year-10 Sweep?
The SECURE Act says you have 10 years — it doesn't say how to spread the withdrawals. Compare the four main strategies with 2026 bracket math. In the right scenario, shifting distributions from 32% working years to 12–22% retirement years saves $20,000+ on a $500K inherited IRA.
Inherited IRA and Medicaid: What Beneficiaries Planning for Long-Term Care Need to Know
An inherited IRA is almost always a countable Medicaid asset — unlike your own IRA, which some states exempt. In 2026, 37 states count retirement accounts regardless of payout status. Disclaiming the inheritance usually triggers a Medicaid transfer penalty. Here's what the 5-year lookback means, how the CSRA protects a community spouse, and what strategies actually reduce exposure.
Inherited IRA and Divorce: Beneficiary Designations, Division, and What Happens Next
Divorce intersects with IRA law in four ways: dividing your own IRA in the settlement (no QDRO — use IRC § 408(d)(6) direct transfer), the stale beneficiary designation that may still leave assets to your ex, inheriting from an ex-spouse after their death (non-spouse 10-year rule applies), and protecting an inherited IRA you hold from being classified as marital property.
How to Report an Inherited IRA on Your Tax Return (Form 1099-R & 1040)
Every inherited IRA distribution triggers a Form 1099-R. Box 7 should say Code 4 (death) — not Code 1. If it says Code 1, your custodian filed incorrectly and you'll be charged a 10% early withdrawal penalty that doesn't apply to you. Step-by-step guide to reading the 1099-R, entering amounts on Form 1040 Lines 4a/4b, recovering after-tax basis with Form 8606, and avoiding the most common filing errors.
Multiple Inherited IRAs: Aggregation Rules, Separate 10-Year Clocks, and Tax Strategy
Inheriting IRAs from two parents or different people? The aggregation rules are stricter than most beneficiaries realize: you can pool RMDs across multiple accounts from the same decedent, but different-decedent inherited IRAs each require a separately calculated and separately satisfied distribution. Each account also has its own independent 10-year depletion deadline — and a double year-10 collision can push you into a far higher bracket than either account alone would have.
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