The SECURE Act and Inherited IRAs

For a beneficiary subject to this rule, the inherited account must be fully distributed by the end of the 10th year following the year of the owner's death.

The owner's date of death, beneficiary classification and type of account matter. Older inheritances and beneficiaries that are not individuals can follow different rules, so this summary is not a universal withdrawal schedule.

The categories include a surviving spouse; the owner's minor child until reaching majority; an individual who is disabled; an individual who is chronically ill; and a person not more than 10 years younger than the owner.

Definitions and special rules apply. The minor-child exception concerns the account owner's child, not every young beneficiary. A child's transition to majority can trigger a subsequent 10-year distribution period.

Yes. If the owner died on or after the required beginning date, annual beneficiary RMDs generally apply during the 10-year period as well as the requirement to empty the account by the final deadline.

When the owner died before the required beginning date and the 10-year rule applies, Publication 590-B describes a different annual-distribution treatment. Confirm the applicable rule with the custodian and a qualified tax professional.

The phrase describes the possibility of a concentrated income-tax bill, not a separate tax. Previously untaxed traditional IRA distributions generally add to the beneficiary's taxable income.

Taking a large amount in one year may push some income into higher brackets. Comparing required withdrawals with an heir's other income may help identify timing questions, depending on the situation.

No. The original owner's absence of lifetime Roth IRA RMDs does not remove beneficiary distribution rules. Inherited Roth IRAs can still be subject to a 10-year deadline.

Whether a distribution is qualified depends on the Roth distribution rules. Do not treat the account label alone as an answer to every tax question.