SECURE Act 2020 forces most non-spouse beneficiaries to fully withdraw the account within 10 years. Compute the year-by-year withdrawal that minimizes lifetime tax (front-load, level, back-load strategies).
Detailed instructions, formula notes, and US-context guidance shown in the calculator above.
Disclaimer: Estimate only. Consult a qualified professional for decisions with major financial, legal, or health consequences.
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📋 How to use this calculator
- Enter the inherited IRA balance at the start of the 10-year window.
- Select beneficiary type — Non-Spouse (most common, 10-yr rule) or Eligible Designated Beneficiary (EDB).
- Choose withdrawal strategy: front-load, level, or back-load.
- Enter your current marginal tax bracket and projected bracket changes.
- Review year-by-year withdrawal schedule and total tax cost.
🧮 SECURE Act 10-Year Rule (Non-Spouse Beneficiaries)
Year_n_withdrawal x Marginal_rate = Year_n_tax_cost; sum over 10 years = total tax
- 10-year rule: account must be fully withdrawn by Dec 31 of year 10 after death
- Applies to most non-spouse beneficiaries (siblings, adult children, friends)
- Eligible Designated Beneficiaries (EDB): spouse, minor child, disabled, chronically ill, beneficiary within 10 yrs of decedent's age
- EDBs can stretch over their life expectancy (like pre-2020 rules)
- Annual RMDs may also apply during the 10 years if decedent was past RBD
If decedent died on or after their Required Beginning Date (RBD), beneficiary must take annual RMDs in years 1-9 PLUS empty by year 10. If died before RBD, only need empty by year 10 — flexible timing. Final RMD penalty: 25% of shortfall (reduced from 50%, but reducible to 10% if cured timely).
💡 Worked example: Adult child inherits $500K Traditional IRA, 35-year-old in 24% bracket
Given:- Inherited balance: $500,000
- Beneficiary: 35-year-old adult child (non-spouse)
- Current bracket: 24% federal + 5% state = 29%
- Projected bracket in 5 years: 32% (career growth)
- Decedent died before RBD (no annual RMD required during 10 years)
Steps:- Level strategy: $50,000/yr withdrawal x 10 years
- Annual tax: $50,000 x 29% = $14,500
- Total 10-yr tax: $145,000
- Front-load (Y1-Y5, $100K/yr): if pushes into 32% bracket, $32,000/yr = $160,000 total tax
- Back-load (Y6-Y10 $100K/yr at projected 32%): same as front-load
Result: Level strategy minimizes total tax at $145K. Front-loading wins ONLY if you stay in current bracket and expect future tax law to raise rates (current OBBBA brackets expire 2028 — high uncertainty).
❓ Frequently asked questions
What if I don't withdraw anything for 10 years and just empty in year 10?
If decedent died before their Required Beginning Date (RBD, age 73-75 depending on birth year), you can do exactly that — no RMDs during years 1-9, then full empty by Dec 31 year 10. BUT this triggers massive bracket-busting in year 10 — withdrawing $500K all at once likely pushes you into 35-37% federal. Almost always level or front-loaded is better unless year 10 is a known low-income year (sabbatical, retirement gap).
What if decedent died AFTER their RBD?
You must take annual RMDs in years 1-9 based on YOUR life expectancy AND empty the account by year 10. The annual RMD is small (1-2% of balance for a 35-year-old beneficiary) but still required. Skipping = 25% penalty on shortfall. IRS gave relief for 2021-2025 RMDs in this scenario; 2026 onward enforcement is expected.
Can I roll an inherited IRA into my own IRA?
Only SPOUSE beneficiaries can — and only into an existing or new IRA in their own name. Non-spouse beneficiaries CANNOT roll the inherited IRA into their own. Must remain titled as 'inherited from [decedent]' with proper beneficiary designations. Treating an inherited IRA as your own (non-spouse) triggers full taxation of the entire balance.
What's the difference between Traditional and Roth inherited IRA?
Traditional inherited IRA: withdrawals are ORDINARY INCOME (taxed at your marginal rate). Roth inherited IRA: withdrawals are TAX-FREE assuming the original Roth was 5+ years old. BOTH are subject to the 10-year rule (Roth doesn't escape it). Roth inheritance is the gift that keeps giving — empty it at year 10 with $0 tax cost, transferring potentially $1M+ of tax-free wealth to next generation.
Should I use the inherited IRA money to fund my own Roth via backdoor?
Indirectly yes — withdraw $7K from inherited IRA (paying ordinary tax on the withdrawal), then contribute $7K to a Roth IRA (assuming you have earned income). Net effect: shifts assets from inherited-pre-tax to your own Roth. Multi-year strategy: drain the inherited IRA over 10 years while filling Roth IRA + Roth 401(k) every year, doubling the tax-free space. Coordinate with estate attorney if amounts are large.
📚 Sources & references
Last updated: May 23, 2026