Inherited IRA 10-Year Rule 2026: RMDs Now Enforced

If you inherited an IRA, the IRS gave you ten years to empty it — and starting in 2025, it started enforcing annual deadlines inside that window. Miss a required distribution and the penalty is 25% of the amount you should have taken. Here’s how the 10-year rule actually works in 2026.

The SECURE Act of 2019 eliminated the “stretch IRA” for most non-spouse beneficiaries. Instead of spreading distributions over your lifetime, most heirs must empty an inherited traditional IRA by December 31 of the 10th year after the owner’s death. IRS final regulations in 2024 added a twist: in many cases you also have to take annual required minimum distributions (RMDs) during years 1 through 9.

Do You Owe Annual RMDs? It Depends on When the Owner Died

The key question is whether the original owner died on or after their required beginning date (generally April 1 after turning 73).

• Owner died ON or AFTER their required beginning date: you must take annual RMDs in years 1–9 and empty the account by end of year 10.
• Owner died BEFORE their required beginning date: no annual RMDs — you just must empty the account by end of year 10, on whatever schedule you choose.

Example: your father died in 2023 at age 78 (after his required beginning date). You must take an RMD for 2025, 2026, … 2031, and the account must be empty by December 31, 2033.

The Penalty Holiday Is Over

The IRS waived penalties for missed annual RMDs from 2021 through 2024 while the rules were unclear. That grace period ended. Enforcement began with the 2025 tax year — so 2026 is the second year the annual RMD requirement has teeth.

The excise tax on a missed RMD is 25% of the amount you failed to take. If you correct it reasonably quickly (generally within two years), it drops to 10%. Either way, it’s the most expensive “oops” in retirement planning.

Special Cases

Inherited Roth IRAs: the 10-year emptying rule still applies, but there are no annual RMDs in years 1–9 — you can wait until year 10 if you want the maximum tax-free growth. (Qualified distributions remain tax-free.)

Eligible designated beneficiaries — surviving spouses, minor children, disabled or chronically ill individuals, and anyone not more than 10 years younger than the owner — can still use the old stretch rules. Everyone else gets the 10-year clock.

Spouses have the best option of all: roll the inherited IRA into your own IRA and treat it as yours, resetting the clock entirely. See our 401(k) rollover guide for the mechanics of moving retirement money without triggering taxes.

Planning Around the 10-Year Window

Because distributions from an inherited traditional IRA are taxable income, bunching them creates tax spikes. Common strategies:

• Spread evenly across the 10 years to stay in lower brackets.
• Front-load in low-income years — e.g., before your own RMDs or Social Security begin.
• Coordinate with Roth conversions of your own accounts so the two don’t stack in the same year. Our Roth vs Traditional guide covers the conversion math.
• Watch IRMAA: a big distribution year can push your MAGI over Medicare surcharge thresholds two years later.

What to Do Right Now

1. Confirm which year the 10-year clock started (the year after death = year 1).
2. Determine whether annual RMDs apply (was the owner past their required beginning date?).
3. Calculate this year’s RMD using the IRS Single Life Table and take it before December 31.
4. If you missed 2025’s RMD, correct it now — the penalty drops from 25% to 10% with timely correction.

The Bottom Line

The 10-year rule is simple to state and easy to get wrong. The annual-RMD trap — new, enforced since 2025, carrying a 25% penalty — is where heirs get hurt. If you inherited an IRA in the last few years and haven’t taken 2025’s RMD, fix that first, then build a 10-year distribution plan that keeps you out of higher brackets.

Related reading: 401(k) Rollover to IRA: How to Move Your Old 401(k) Without Taxes or Penalties · Roth IRA vs Traditional IRA: Which Is Better in 2026?

Sources

• IRS final regulations on SECURE Act RMDs (2024), via retirementaihelper.com
• SW CPAs — Inherited IRA RMD rules
• Q3 Advisors — Inherited Roth IRAs and the ten-year rule

Not financial advice. Do your own research. Inherited IRA rules have many exceptions — consider a qualified advisor for your situation.

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Bull Lounge is an independent financial education publication. Our team breaks down markets, retirement planning, and tax strategy into plain English for investors in their 40s, 50s, and 60s — no hype, no jargon, verified numbers only.