Calculate inherited IRA RMDs under 2026 SECURE Act rules. 10-year payout, EDB stretch, and penalty-avoidance schedule by beneficiary type.
If you inherited an IRA from someone who died on or after January 1, 2020, you almost certainly fall under the 10-year rule: the entire account must be emptied by December 31 of the tenth year after the original owner's death. Starting in 2025, the IRS finalized regulations requiring most non-spouse beneficiaries to also take annual Required Minimum Distributions (RMDs) during years 1–9 if the original owner had already begun taking RMDs themselves. This is the rule the IRS waived from 2021–2024 — but for 2025 and 2026 distributions, the penalty is back: 25% excise tax on any missed RMD (reduced to 10% if corrected within two years).
This guide walks you through the exact RMD math for 2026, who still qualifies for the old "stretch IRA" treatment, how the 10-year rule interacts with annual RMDs, and the calculator inputs you need to avoid a five-figure penalty.
By Ziv Shay — Last updated April 30, 2026
Educational content only. Not financial or tax advice. Consult a CPA or financial advisor before making distribution decisions on an inherited IRA.
Three inputs determine your 2026 RMD on an inherited IRA:
The basic formula:
RMD = Prior-year-end balance ÷ Single Life Expectancy divisor
Example: You inherited a Traditional IRA from your father, who died in 2024 at age 76 (already taking RMDs). The 12/31/2025 balance is $420,000. You are age 52 in 2026. Your Single Life Expectancy divisor at age 52 is 34.3. Subtract one for each year since death (the "subtract one" method for non-spouse beneficiaries): 34.3 − 2 = 32.3. Your 2026 RMD = $420,000 ÷ 32.3 = $13,003. You also must empty the account by December 31, 2034.
The SECURE Act of 2019 eliminated the lifetime "stretch IRA" for most beneficiaries who inherit on or after January 1, 2020. If you are not one of the five Eligible Designated Beneficiaries (EDBs) below, you are subject to the 10-year rule:
Under the 10-year rule, the account must be fully distributed by December 31 of the year containing the 10th anniversary of the death. Critically, the 2024 final regulations confirmed that if the original owner had reached their Required Beginning Date (RBD) — generally age 73 under SECURE 2.0 — the beneficiary must also take annual RMDs in years 1–9, and then drain whatever remains in year 10.
If the original owner died before their RBD, no annual RMDs are required during the 10-year window. You can take $0 in years 1–9 and the full balance in year 10 — though that bunches the tax bill into one calendar year, which is rarely optimal.
If you fit one of these five categories, you qualify for the old "stretch IRA" treatment — annual RMDs based on your single life expectancy, with no 10-year deadline:
EDBs use the Single Life Expectancy Table and the "subtract one" method each year. When an EDB dies, their beneficiary (a successor beneficiary) is generally subject to the 10-year rule from that point.
The IRS updated the Single Life Expectancy Table in 2022 (longer life expectancies, smaller RMDs). Selected divisors for 2026 calculations:
You look up your divisor only in the first RMD year, then subtract one each subsequent year. Do not re-look up the table annually — that's the mistake that triggers most 25% penalties.
Sarah (age 48) inherited a $300,000 Traditional IRA from her mother, who died in 2023 at age 78. Mom was already taking RMDs. Sarah is subject to both the 10-year rule (must drain by 12/31/2033) and annual RMDs in years 1–9.
First-year divisor (age 46 in 2024): 39.0. For 2026 (year 3), the divisor is 39.0 − 2 = 37.0. If the 12/31/2025 balance is $315,000, the 2026 RMD = $315,000 ÷ 37.0 = $8,514.
Marcus (age 35) inherited a $180,000 Roth IRA from his uncle, who died in 2025 at age 68. Uncle had not started RMDs (and Roth IRA owners never have RMDs during life). The 10-year rule applies, but no annual RMDs are required in years 1–9. Marcus could take $0 each year and a $180,000+ growth lump in 2035 — but spreading it out smooths income. Roth distributions remain tax-free, but the account must still be empty by 12/31/2035.
Linda (age 60) inherited a $750,000 Traditional IRA from her husband, who died in 2026 at age 67. She has three options. The most common: roll it into her own IRA. No RMDs until she turns 73 in 2039 — 13 years of tax-deferred growth. If instead she stays as beneficiary (useful if she's under 59½ and needs penalty-free access), she takes RMDs based on her single life expectancy starting the year her husband would have turned 73.
Tom (age 65) inherited a $500,000 IRA from his brother, who died in 2024 at age 72. Tom is less than 10 years younger, so he qualifies as an EDB. He uses the stretch rules: 2026 divisor = age 65 lookup (22.9) minus 2 years = 20.9. RMD = $500,000 ÷ 20.9 = $23,923. No 10-year deadline.
The RMD is a floor, not a ceiling. Taking only the minimum often backfires under the 10-year rule because you're forced to liquidate the entire balance in year 10 — potentially pushing you into the 32% or 35% federal bracket. Smarter strategies:
For Roth inherited IRAs, the calculus flips: there's no income-tax cost, so let it grow tax-free for the full 10 years and take everything in year 10. The 5-year holding rule for Roth earnings tacks on from the original owner's first Roth contribution year.
SECURE 2.0 dropped the missed-RMD penalty from 50% to 25%, with a further reduction to 10% if you self-correct within two years using Form 5329. To stay clean:
The 10-year rule applies to inherited 401(k)s too, but plan administrators often force distribution faster. Many 401(k) plans require the entire balance be distributed within 1–5 years regardless of IRS rules. Your best move is almost always a direct trustee-to-trustee transfer to an inherited IRA, which preserves the 10-year window and gives you investment flexibility. See our 401(k) rollover guide for the mechanics.
If the original owner died before their RBD and there is no designated beneficiary (e.g., the estate inherited the IRA), the entire balance must be distributed within 5 years. This is rare but catches estates that didn't update beneficiary forms. Always name a designated beneficiary on every retirement account.
If you're a non-spouse beneficiary and the original owner died on or after January 1, 2020, you must empty the inherited Roth by December 31 of year 10. However, you do not have to take annual RMDs in years 1–9 because Roth IRA owners are not subject to RMDs during their lifetime — meaning they died before their "RBD" by definition for Roth purposes. Distributions remain tax-free as long as the original Roth was open at least 5 years.
The penalty is a 25% excise tax on the missed amount, reported on Form 5329. If you correct the shortfall within two years and file Form 5329 requesting a waiver, the penalty drops to 10% — and the IRS frequently waives it entirely for first-time honest mistakes. Take the missed RMD as soon as possible and explain the reasonable cause in the Form 5329 narrative.
You can combine inherited IRAs from the same decedent (e.g., a Traditional IRA and a SEP-IRA your father owned) into one inherited IRA in your name. You cannot combine inherited IRAs from different decedents — each must remain separate, and RMDs are calculated separately. You also cannot mix an inherited IRA with your own personal IRA unless you're a spouse who chose the spousal rollover.
No. Your successor beneficiary inherits the remaining 10-year clock — they don't get a fresh 10 years. If you inherited in 2024 and die in 2028, your beneficiary still must empty the account by December 31, 2034. This is one of the most overlooked pieces of the SECURE Act regulations and a strong argument for not deferring distributions to year 10.
No. Distributions from an inherited IRA are exempt from the 10% early withdrawal penalty regardless of your age. This is a key reason a non-spouse beneficiary under 59½ should generally not roll an inherited IRA into their own IRA (which spouses can do but non-spouses cannot) — you'd lose the penalty exemption.
Yes, in most states. Distributions from an inherited Traditional IRA are taxed as ordinary income at both federal and state levels. A handful of states (Florida, Texas, Washington, Nevada, South Dakota, Wyoming, Alaska, Tennessee, New Hampshire) have no state income tax. Pennsylvania and Illinois exempt most retirement distributions from state tax. Plan distributions around state-of-residence rules — moving to a no-tax state during your 10-year window is a legitimate tax strategy.
This article reflects IRS regulations finalized in July 2024 and SECURE 2.0 provisions effective for 2026. Inherited IRA rules are complex and depend on the original owner's death date, age, and your relationship. Consult a CPA or estate planning attorney before making distribution decisions, especially for accounts over $250,000.
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