Inherited IRA rules were significantly restructured by the SECURE Act and SECURE 2.0. In 2026, the specific requirements are determined by your relationship to the original owner and whether that owner had already begun taking Required Minimum Distributions (RMDs).

Rules for Spousal Beneficiaries

Spouses continue to have the most flexibility when inheriting an IRA.

  • Treat as Own: You can roll the inherited assets into your own existing or new IRA. The funds then follow standard RMD rules based on your age.
  • Inherited IRA: You can keep the assets in an “Inherited IRA.” This allows you to take penalty-free withdrawals at any age, which is beneficial if you are under 59½.
  • RMD Timing: If you choose an Inherited IRA, you can delay RMDs until the year the deceased spouse would have reached age 73 (or age 75 for those born in 1960 or later).

The 10-Year Rule for Non-Spouse Beneficiaries

Most non-spouse heirs (such as adult children) who inherit an IRA after 2019 fall under the “10-year rule.”

  • Account Liquidation: The entire balance of the inherited account must be distributed by December 31 of the 10th year following the owner’s death.
  • Annual RMD Requirement: For 2026, if the original owner died after they had already started their own RMDs, you must take annual RMDs in years 1 through 9, and then empty the remaining balance in year 10.
  • No Annual RMD: If the original owner died before reaching RMD age, you generally do not have to take annual distributions; you simply must ensure the account is empty by the end of the 10th year.

Eligible Designated Beneficiaries (EDBs)

Certain individuals are exempt from the 10-year rule and can still “stretch” distributions over their own life expectancy.

  • Disabled or Chronically Ill: Individuals meeting specific IRS criteria for disability.
  • Minor Children: Minor children of the deceased can take life-expectancy payments until they reach age 21, at which point the 10-year clock begins.
  • Near-Age Beneficiaries: Anyone who is not more than 10 years younger than the original owner.

Inherited Roth IRA Specifics

While inherited Roth IRAs are also subject to the 10-year rule, the tax treatment differs.

  • Tax-Free Distributions: As long as the original account was open for at least five years before the owner’s death, all withdrawals (including earnings) are tax-free.
  • Withdrawal Strategy: Since there is no tax impact, many Roth heirs choose to leave the money in the account for the full 10 years to maximize tax-free growth, taking a single lump sum at the very end of the period.

Penalties and Compliance

Failure to comply with inherited RMD rules can be costly.

  • Excise Tax: The penalty for a missed RMD is 25 percent of the amount not taken. This can be reduced to 10 percent if the mistake is corrected within two years.
  • No Early Withdrawal Penalty: Inherited IRAs are exempt from the 10 percent early withdrawal penalty that usually applies to those under age 59½, regardless of whether it is a Traditional or Roth account.

Source: Internal Revenue Service (IRS), Publication 590-B (2026 Updates); and SECURE 2.0 Act of 2022.