Inherited IRA Rules 2026: Complete Reference Guide
Inherited IRA law changed significantly with three pieces of legislation — the SECURE Act (2019), SECURE 2.0 (2022), and IRS final regulations T.D. 10001 (July 2024). For 2026, one major threshold was crossed: the series of annual RMD waivers that shielded Group B beneficiaries from penalties since 2021 has fully expired. This page is a complete reference to the rules, values, and deadlines governing inherited IRAs in 2026.
Three laws that govern inherited IRAs in 2026
| Law | Effective | Key inherited IRA changes |
|---|---|---|
| SECURE Act | Jan 1, 2020 | Eliminated the stretch IRA for most non-spouse beneficiaries; replaced with the 10-year depletion rule (IRC § 401(a)(9)(H)). Added the five eligible designated beneficiary (EDB) categories who retained the stretch. |
| SECURE 2.0 Act | Jan 1, 2023 | RMD age raised to 73 (born 1951–1959) and 75 (born 1960+); this determines which inherited accounts fall into Group B. Missed-RMD penalty cut from 50% to 25%, reducible to 10% in the correction window. Eliminated Roth 401(k)/403(b) lifetime RMDs starting 2024, affecting RBD for inherited Roth plans. |
| T.D. 10001 (IRS final regs) | Effective Jan 1, 2025 | Finalized the Group A/Group B annual RMD split; eliminated the Oct 31 trust documentation requirement for IRAs; clarified successor beneficiary rules; confirmed waiver series does not extend beyond 2024. |
Quick reference: rules by beneficiary type
| Beneficiary type | Distribution rule | Annual RMDs required? | Governing IRC section |
|---|---|---|---|
| Surviving spouse | Multiple options: rollover to own IRA, treat-as-own election, EDB lifetime stretch, or hybrid approach for under-59½ | EDB stretch requires annual RMDs if decedent died after RBD; rollover/treat-as-own follows own RMD rules | § 401(a)(9)(B)(iv); § 401(a)(9)(E)(ii)(I) |
| Minor child of the employee (direct child only — grandchildren do not qualify) | EDB lifetime stretch until age 21, then 10-year rule triggers automatically | Annual RMDs during stretch phase if decedent died after RBD; no annual RMDs during the 10-year phase | § 401(a)(9)(E)(ii)(II); § 401(a)(9)(H)(ii) |
| Disabled beneficiary | EDB lifetime stretch over single life expectancy | Yes — annual RMDs are mandatory each year (true lifetime RMD obligation) | § 401(a)(9)(E)(ii)(III); § 72(m)(7) |
| Chronically ill beneficiary | EDB lifetime stretch over single life expectancy | Yes — annual RMDs mandatory each year | § 401(a)(9)(E)(ii)(IV); § 7702B(c)(2) |
| Not more than 10 years younger (e.g., qualifying sibling, non-spouse partner) | EDB lifetime stretch over single life expectancy | Annual RMDs required if decedent died after RBD | § 401(a)(9)(E)(ii)(V) |
| All other non-spouse beneficiaries (adult children, grandchildren, most heirs) | 10-year rule: deplete account by Dec 31 of the 10th year after owner's death | Group A (pre-RBD decedent): no annual RMDs Group B (post-RBD decedent): annual RMDs in years 1–9 required |
§ 401(a)(9)(H); T.D. 10001 |
| Non-designated beneficiary (estate, charity, non-see-through trust) | 5-year rule if decedent died before RBD; ghost life expectancy if post-RBD | Ghost life expectancy uses prior-year factor minus 1.0 each year | § 401(a)(9)(B)(i)–(ii) |
The 10-year rule in 2026: Group A vs Group B
Under T.D. 10001, non-EDB beneficiaries subject to the 10-year rule fall into one of two groups based on whether the original IRA owner died before or after their Required Beginning Date. This split determines whether annual RMDs are required during the 10-year window.1
Group A — decedent died before RBD (no annual RMDs)
If the IRA owner died before reaching their Required Beginning Date, no annual distributions are required during the 10-year window. The beneficiary may withdraw any amount — including nothing — in years 1 through 9. The entire account must be depleted by December 31 of year 10. This gives significant flexibility to concentrate distributions in low-income years.
Group B — decedent died on or after RBD (annual RMDs mandatory)
If the IRA owner died on or after their Required Beginning Date, the beneficiary must take annual minimum distributions in years 1 through 9, calculated using the IRS Single Life Expectancy Table (IRS Pub. 590-B, T.D. 9930 updated table). The year-10 depletion deadline still applies on top of the annual RMD obligation.
How to determine the decedent's RBD: birth year chart
The RBD age has changed three times. Use this chart to determine whether a decedent was before or after RBD at the time of death:2
| IRA owner birth year | RBD age | First RBD date | Notes |
|---|---|---|---|
| 1950 or earlier | 70½ | April 1 after turning 70½ | Pre-SECURE Act; any living owner in 2026 is age 76+, well past RBD |
| 1951 – 1959 | 73 | April 1 of year following age-73 birthday | SECURE Act (§ 107); these owners are ages 67–75 in 2026 — some still pre-RBD |
| 1960 and later | 75 | April 1 of year following age-75 birthday | SECURE 2.0; these owners are age 65 or younger in 2026 — most still far pre-RBD |
Example: A parent born May 1, 1954 has an RBD of April 1, 2028 (the year after turning 73 in 2027). If that parent dies in 2026, the inherited IRA falls into Group A — no annual RMDs required. If the parent lives until 2029 and then dies, the account falls into Group B with annual RMDs mandatory.
10-year depletion deadlines by inheritance year
The entire inherited IRA must be distributed by December 31 of the 10th year after the original owner's year of death (counted as 10 full calendar years after the death year).2
| Year owner died | Year-10 depletion deadline | Years remaining (from 2026) | Group B annual RMD years |
|---|---|---|---|
| 2020 | December 31, 2030 | 4 years | 2021–2029 (years 1–9); 2021–2024 waivers expired; 2025–2026 mandatory |
| 2021 | December 31, 2031 | 5 years | 2022–2030 (years 1–9); 2022–2024 waivers expired; 2025–2026 mandatory |
| 2022 | December 31, 2032 | 6 years | 2023–2031 (years 1–9); 2023–2024 waivers expired; 2025–2026 mandatory |
| 2023 | December 31, 2033 | 7 years | 2024–2032 (years 1–9); 2024 waiver expired; 2025–2026 mandatory |
| 2024 | December 31, 2034 | 8 years | 2025–2033 (years 1–9); 2025–2026 mandatory |
| 2025 | December 31, 2035 | 9 years | 2026–2034 (years 1–9); 2026 mandatory |
| 2026 | December 31, 2036 | 10 years | 2027–2035 (years 1–9) |
2026 key dollar values and thresholds
Federal income tax brackets (ordinary income)
Inherited IRA distributions are taxed as ordinary income — the same rates as wages and interest, not capital gains rates. For 2026 per IRS Rev. Proc. 2025-32:3
| Rate | Single filers (taxable income) | Married filing jointly (taxable income) |
|---|---|---|
| 10% | $0 – $12,400 | $0 – $24,800 |
| 12% | $12,401 – $50,400 | $24,801 – $100,800 |
| 22% | $50,401 – $105,700 | $100,801 – $211,400 |
| 24% | $105,701 – $201,775 | $211,401 – $403,550 |
| 32% | $201,776 – $256,225 | $403,551 – $512,450 |
| 35% | $256,226 – $640,600 | $512,451 – $768,700 |
| 37% | Over $640,600 | Over $768,700 |
2026 standard deduction: $16,100 (single) / $32,200 (MFJ). Inherited IRA distributions add to gross income before the standard deduction is applied to arrive at taxable income.
2026 planning thresholds quick reference
| Threshold | 2026 value | Why it matters |
|---|---|---|
| QCD annual limit | $111,000 per person | Age 70½+ can direct up to $111,000 from their own IRA to charity — excluded from gross income — freeing bracket space for inherited IRA distributions. QCDs from inherited IRAs are permitted for qualifying beneficiaries age 70½+.3 |
| IRMAA tier-1 (single) | $109,000 MAGI | Inherited IRA distributions that push 2024 MAGI above $109,000 will trigger 2026 Medicare Part B surcharges (2-year lookback). First surcharge: +$74.90/month per person.4 |
| IRMAA tier-1 (MFJ) | $218,000 MAGI | Same 2-year lookback; 2026 IRMAA is based on your 2024 return. Large distributions in 2024 are already locked in for 2026 Medicare costs. |
| Part B base premium | $202.90/month | Baseline before any IRMAA surcharge; IRMAA adds $74.90–$419.30/month per person depending on income tier.4 |
| Social Security taxation starts (single) | $25,000 provisional income | Inherited IRA distributions count toward provisional income; 85% of SS benefits can be taxable at higher incomes, creating an effective marginal rate multiplier in the 85% zone. |
| Social Security taxation starts (MFJ) | $32,000 provisional income | See Inherited IRA and Social Security for the full marginal rate calculation. |
| Missed RMD excise tax | 25% of shortfall | Per IRC § 4974 as amended by SECURE 2.0 § 302. Reduced to 10% if distribution is taken and Form 5329 is filed within the 2-year correction window. |
Key 2026 deadlines
| Deadline | Date | Who it applies to |
|---|---|---|
| Annual RMD for Group B beneficiaries | December 31, 2026 | All non-EDB beneficiaries who inherited from post-RBD decedents in 2020 or earlier (2020-inherited accounts are in year 6 of 10) |
| Annual RMD for EDB stretch beneficiaries | December 31, 2026 | Surviving spouses on EDB stretch, disabled/chronically ill EDBs, and not-10-years-younger EDBs must take their 2026 annual stretch RMD |
| Beneficiary determination date | September 30, 2026 | Inherited IRA accounts from owners who died in 2025; this date locks in which beneficiaries are counted for RMD calculation |
| Separate accounts establishment | December 31, 2026 | Multiple beneficiaries of 2025 deaths who want separate 10-year clocks and individual RMD factors; must be established at the custodian by this date |
| Year-of-death RMD completion | December 31, 2026 | If an IRA owner died in 2026 after their RBD without completing their annual RMD, the beneficiary must take that RMD before year-end |
| Disclaimer deadline | 9 months after date of death | Beneficiaries considering a qualified disclaimer must act within 9 months of the original owner's death (IRC § 2518); no extension for 2026 deaths |
Inherited IRA account types: same 10-year rule applies broadly
The SECURE Act 10-year rule and T.D. 10001 annual RMD requirements apply to all of these account types when inherited by a non-EDB beneficiary:
- Traditional IRA — standard 10-year rule; all distributions fully taxable as ordinary income
- Roth IRA — 10-year rule applies but no annual RMDs during the 10-year window (Roth IRAs have no RBD; T.D. 10001's annual RMD rule cannot trigger); distributions tax-free if the 5-year clock requirement is met — see Inherited Roth IRA
- SEP IRA and SIMPLE IRA — treated identically to traditional IRA for distribution purposes; see Inherited SEP and SIMPLE IRA for the 2-year transfer restriction on SIMPLE accounts
- Inherited 401(k) and 403(b) — same SECURE Act 10-year rule via IRC §§ 401(a)(9) and 403(b)(10); direct rollover to inherited IRA available via IRC § 402(c)(11) — see Inherited 401(k) and Inherited 403(b)
- Governmental 457(b) — same 10-year rule; direct rollover to inherited IRA permitted — see Inherited 457(b)
- Thrift Savings Plan (TSP) — 10-year rule applies; TSP liquidates the account within 90 days if no action is taken by a non-spouse beneficiary — see Inherited TSP
Frequently asked questions about 2026 rules
Do I owe an annual RMD from my inherited IRA in 2026?
Yes, if both of the following are true: (1) you are a non-EDB beneficiary subject to the 10-year rule, and (2) the original IRA owner died on or after their Required Beginning Date (Group B). The 2021–2024 waivers have expired and do not cover 2026. If you inherited from someone who died before their RBD (Group A), no annual RMD is required — only the year-10 depletion deadline applies.
What if I missed my 2025 annual RMD?
The 25% excise tax under IRC § 4974 applies to the undistributed amount. However, SECURE 2.0 § 302 allows a reduction to 10% if you take the missed distribution and file Form 5329 Part IX within 2 years of the missed RMD due date. You may also request a reasonable-cause waiver. See the full Missed Inherited IRA RMD guide for the step-by-step correction process.
Can I convert my inherited IRA to a Roth IRA?
Non-spouse beneficiaries cannot Roth-convert an inherited IRA — IRC § 408(d)(3)(C) categorically prohibits rollovers by non-spouse beneficiaries. What you can do instead: use the bracket space created by your inherited IRA distributions to do Roth conversions from your own traditional IRA during the 10-year window. Surviving spouses who roll the inherited IRA into their own IRA can then Roth-convert normally. See Inherited IRA Roth Conversion.
Does the 10-year rule apply to inherited Roth IRAs?
Yes — the 10-year depletion deadline applies to inherited Roth IRAs. The difference: no annual RMDs are required during the window, because Roth IRAs have no Required Beginning Date. Most beneficiaries optimally defer all distributions to year 10, maximizing tax-free growth. See the Inherited Roth IRA guide.
How is the annual RMD calculated for a Group B inherited IRA?
Use IRS Publication 590-B Table I (Single Life Expectancy Table, updated per T.D. 9930 in 2022). Find your life expectancy factor for your age as of December 31 of the year after the owner's death (or, if you did not begin distributions in year 1 due to the waivers, the year you were supposed to start). Reduce the factor by 1.0 for each subsequent year. Divide the prior December 31 account balance by the current factor. Use the Inherited IRA Annual RMD Calculator to project your required distributions year-by-year.
I inherited an IRA from my parent who died in 2022. How much time do I have?
Your year-10 depletion deadline is December 31, 2032 — 6 years from now. If your parent died after their RBD (check the birth year chart above), you are a Group B beneficiary and owe annual RMDs each year through 2031. Your 2022–2024 annual RMDs were waived. Your 2025 annual RMD was mandatory and is now past due if not taken — see the missed RMD guide. Your 2026 annual RMD must be taken by December 31, 2026.
Sources
- T.D. 10001 — Required Minimum Distributions (Final Regulations, July 2024). Establishes Group A (pre-RBD decedent, no annual RMDs required) vs Group B (post-RBD decedent, annual RMDs required in years 1–9) for non-EDB beneficiaries. Effective for distribution calendar years beginning January 1, 2025. Confirms the waiver series (Notices 2022-53, 2023-54, 2024-35) does not extend beyond 2024. Verified June 2026.
- IRS Publication 590-B — Distributions from Individual Retirement Arrangements (2025). 10-year depletion deadline is December 31 of the 10th calendar year following the year of the owner's death. Single Life Expectancy Table I (updated per T.D. 9930, 2022) used for annual RMD calculations by EDB and Group B beneficiaries. RBD ages: 70½ (born before 1951), 73 (born 1951–1959 per SECURE Act), 75 (born 1960+ per SECURE 2.0). Verified June 2026.
- IRS: 2026 Tax Inflation Adjustments (Rev. Proc. 2025-32). Federal income tax bracket thresholds for 2026. Standard deduction $16,100 (single) / $32,200 (MFJ). QCD annual limit $111,000 per IRS Rev. Proc. 2025-32. Verified June 2026.
- Medicare.gov — Part B Costs 2026. Base Part B premium $202.90/month. IRMAA tier-1 threshold: $109,000 MAGI for single filers, $218,000 MFJ based on 2024 income (2-year lookback). Tier-5 starts $500,000 (single) / $750,000 (MFJ). Verified June 2026.
- IRS Notice 2024-35 — Relief for Certain RMDs Required for 2024. Final waiver in the series; provides penalty relief only through tax year 2024. No waiver issued for 2025 or 2026. Distributions missed in 2025 and 2026 by Group B non-EDB beneficiaries are subject to the 25% excise tax under IRC § 4974, reducible to 10% in the 2-year correction window per SECURE 2.0 § 302. Verified June 2026.
Rules and values verified as of June 2026 against T.D. 10001, IRS Rev. Proc. 2025-32, IRS Notice 2024-35, IRS Pub. 590-B, and Medicare.gov. Inherited IRA law is complex and fact-specific. Verify any specific value or rule at IRS.gov or with a qualified tax professional before acting.
Deeper guides for your situation
- SECURE Act 10-Year Rule — EDB categories, Group A vs B, three planning levers
- Inherited IRA RMD Rules — Annual minimum calculation, T.D. 10001, post-RBD split
- Eligible Designated Beneficiary — All 5 EDB categories and lifetime stretch rules
- Missed Inherited IRA RMD — Form 5329 correction, reasonable-cause waiver letter
- Annual RMD Calculator — Project your required distributions year-by-year
- 10-Year Distribution Strategy — Equal, front-loaded, back-loaded, or year-10 sweep
- Inherited IRA Tax Rate — 2026 bracket math and worked examples
- Surviving Spouse Options — Rollover, treat-as-own, EDB stretch, under-59½ hybrid
- Non-Spouse Inherited IRA — 10-year rule, annual RMD determination, strategies
- What to Do with an Inherited IRA — First-30-days action checklist
- 10-Year Withdrawal Optimizer Calculator
- SECURE Act 2.0 Changes — RMD age 73/75, penalty reduction, Roth 401(k) RMD elimination
Work with an inherited IRA specialist in 2026
With the annual RMD waiver period over and 10-year depletion deadlines approaching for beneficiaries who inherited in 2020–2022, 2026 is a critical planning year. A fee-only advisor specializing in inherited IRA rules can model your Group A or Group B distribution schedule, minimize bracket stacking across the 10-year window, coordinate with Social Security and IRMAA, and ensure you meet all required deadlines without triggering penalties. Free match, no commissions.