Inherited IRA Planning Tool
Inherited IRA Calculator & RMD Guide
Inherited an IRA? The rules are complicated, especially after the SECURE Act. This tool tells you exactly what you need to do: your beneficiary classification, required distributions, and the withdrawal strategy that saves you the most in taxes.
I built this tool because inherited IRA mistakes are some of the most expensive, and most preventable, errors I see. The rules are confusing, but the math doesn't have to be.
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About the Inherited IRA
Tell us about the IRA you inherited. These details determine which IRS rules apply to your distributions.
Current account value
Traditional: Distributions are taxed as ordinary income in the year you withdraw.
SECURE Act rules apply to deaths after December 31, 2019
Age at death: 78
⚠️ Owner was 73+: they had reached their Required Beginning Date (RBD). This means annual RMDs are required for most non-spouse beneficiaries.
Why does the owner's age matter?
Under SECURE 2.0, IRA owners must begin taking Required Minimum Distributions (RMDs) at age 73. If the owner died after reaching this age, most non-spouse beneficiaries must take annual RMDs during the 10-year window. If the owner died before age 73, non-spouse beneficiaries can choose when to withdraw, as long as the account is emptied by year 10.
By Jay Chang, VP, Wealth Advisor
Last updated July 6, 2026
What Are the Rules for an Inherited IRA?
Your rules depend on one thing: your relationship to the person who died. Spouses can treat the IRA as their own. Most other beneficiaries who inherited after 2019 must empty the account within 10 years under the SECURE Act.
For a Traditional IRA, every withdrawal is ordinary income. Ten years of forced distributions can land squarely on your peak earning years. The deadline is fixed, but the schedule inside it is yours to plan, and the schedule is where the tax savings live.
When Inherited IRA Planning Matters Most
The distribution schedule deserves real attention in a few situations I see often:
- You inherited during peak earning years. Withdrawals stack on top of your salary at your highest marginal rate. Spreading them evenly, or loading them into a lower-income year, changes the total tax bill. My guide to the inherited IRA 10-year rule covers the timing options.
- The owner was already taking RMDs. You likely owe annual distributions in years one through nine on top of the 10-year deadline. Missing those carries an IRS penalty.
- You're a surviving spouse. Rolling the account into your own IRA, keeping it inherited, or disclaiming it are three different tax outcomes, and the choice is usually permanent.
- A retirement or income change is coming. A sabbatical, retirement, or job change opens low-bracket years that are ideal for larger withdrawals.
- The inheritance is recent. Before any distribution decisions, slow down. My article on what not to do with a first inheritance covers the mistakes that cannot be undone.
One more thing while you're here: check your own accounts. Beneficiary forms override your will, and outdated ones cause exactly the mess you may be untangling now. I wrote about why beneficiary designations are the most overlooked estate plan.
How to Use This Calculator
- Enter the account details: balance, Traditional or Roth, the year the owner passed away, and the owner's year of birth.
- Identify your relationship to the owner. This sets your beneficiary category and which distribution rules apply to you.
- Add your filing status, other income, state, and an expected growth rate so the tax math matches your bracket.
- Compare withdrawal strategies side by side and review the year-by-year schedule of distributions and taxes.
Inherited IRA Questions I Hear Most
What is the 10-year rule?
Most non-spouse beneficiaries who inherit an IRA from someone who died after 2019 must empty it by the end of the tenth year after death. The old stretch IRA is gone for most people. The deadline is rigid; the schedule inside it is not, and that schedule drives the tax bill.
Do I have to take annual RMDs during the 10 years?
It depends on whether the owner had already started RMDs. If they had, you generally must take annual distributions in years one through nine, then empty the account by year 10. If they died before RMDs began, you can time withdrawals freely within the window. The IRS beneficiary rules spell out both paths.
What can a surviving spouse do?
Spouses have the most options: roll the IRA into your own, keep it as an inherited IRA, or disclaim it. Each has different consequences depending on your age and income. The rollover restarts the RMD clock on your age, which usually helps but not always.
Do I pay taxes on an inherited IRA?
For a Traditional IRA, yes: every withdrawal is ordinary income, and retirement accounts get no step-up in basis. Inherited Roth IRA withdrawals are generally tax-free, though the 10-year deadline still applies to most non-spouse beneficiaries. Sequencing withdrawals against your other income is the kind of work I do in retirement planning engagements.
What is an eligible designated beneficiary?
A beneficiary exempt from the 10-year rule: surviving spouses, the owner's minor children until adulthood, disabled or chronically ill beneficiaries, and anyone not more than 10 years younger than the owner. These beneficiaries can generally stretch distributions over their own life expectancy.