Inherited IRA RMD Rules 2026: What Beneficiaries Must Know
The rules for inherited IRAs have changed dramatically. Learn the 2026 requirements for RMDs and the 10-year rule.
Key Takeaways
- 1Most non-spouse beneficiaries must empty inherited IRA within 10 years
- 2Annual RMDs may be required during the 10-year period (if owner was past RMD age)
- 3Spouse beneficiaries have the most flexibility
- 4Eligible designated beneficiaries can still use stretch
- 5SECURE 2.0 clarified confusing rules from SECURE Act
- 625% penalty for missed RMDs (reduced from 50%)
- 7Different rules for deaths before/after 2020
2026 Inherited IRA Rules Overview
The SECURE Act of 2019 and SECURE 2.0 dramatically changed inherited IRA rules. Here's what applies in 2026.
- **10-year rule**: Most non-spouse beneficiaries must empty IRA within 10 years
- **Annual RMDs clarified**: Required during 10-year period in some cases
- **Spouse exception**: Spouses have multiple options including stretch
- **Eligible designated beneficiaries**: Can still use life expectancy (stretch)
- **Death before 2020**: Old rules may still apply
Rules Changed Again
The IRS issued final regulations in 2024 clarifying that annual RMDs ARE required during the 10-year period if the original owner had reached their RMD age.
Beneficiary Categories
How you're treated depends on your relationship to the deceased.
| Category | Who Qualifies | Distribution Rule |
|---|---|---|
| Spouse | Surviving spouse | Multiple options (most flexible) |
| Eligible Designated Beneficiary (EDB) | Minor child, disabled, chronically ill, within 10 years of age | Life expectancy (stretch) |
| Designated Beneficiary | Most other individuals | 10-year rule |
| Non-Designated Beneficiary | Estate, charity, non-see-through trust | 5-year or life expectancy of decedent |
Spouse Beneficiary Options
Surviving spouses have the most flexibility with inherited IRAs.
- **Treat as own**: Roll into your own IRA (most common)
- **Remain as beneficiary**: Keep as inherited IRA
- **10-year rule**: Can elect if beneficial
- **Delay RMDs**: If younger than deceased, can delay until deceased would have reached RMD age
- **No 10% penalty**: If keeping as inherited IRA, no early withdrawal penalty
Best Choice Usually
Most surviving spouses should roll the IRA into their own name. This provides the most flexibility and allows naming new beneficiaries.
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Non-Spouse Beneficiary Rules
Most non-spouse beneficiaries face the 10-year rule.
- **10-year deadline**: Must withdraw ALL funds by Dec 31 of 10th year after death
- **No annual RMD**: If owner died before RMD age
- **Annual RMD required**: If owner died after reaching RMD age
- **Year 10 balance**: Whatever remains must be withdrawn
- **Tax planning**: Can spread withdrawals over 10 years (subject to annual RMD if applicable)
Example
Parent dies in 2024 at age 75 (past RMD age). Child inherits IRA. Child must take annual RMDs in 2025-2033, AND empty the entire account by December 31, 2034.
Annual RMDs During 10-Year Period
The IRS clarified that annual RMDs ARE required if the original owner had reached their RMD age.
| Owner Died | Annual RMDs Required? |
|---|---|
| Before reaching RMD age | No - just empty by year 10 |
| After reaching RMD age | Yes - annual RMDs + empty by year 10 |
Penalty for Missing RMDs
Missing an annual RMD results in 25% penalty on the amount not withdrawn (reduced from 50% by SECURE 2.0). Correcting quickly may reduce to 10%.
Inheriting a Gold IRA
Gold IRAs follow the same inherited IRA rules. Physical gold can be distributed in-kind or sold for cash distributions.
- Same 10-year rule applies to inherited Gold IRAs
- Can take RMDs as physical gold or cash
- Gold may appreciate during 10-year period
- Consider keeping gold allocation during distribution period
- Diversification benefits continue for beneficiaries
- Augusta Precious Metals explains beneficiary options
Frequently Asked Questions
1What if I inherited an IRA before 2020?
Old rules apply. You can generally continue stretching over your life expectancy if you were already taking RMDs.
2I'm a minor child beneficiary - what are my rules?
Minor children of the deceased can use stretch RMDs until reaching age of majority (18-21 depending on state). Then the 10-year rule kicks in.
3What happens if I miss the 10-year deadline?
The entire remaining balance would be subject to the 25% penalty. Take distributions throughout the 10 years to avoid this.
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