An inherited IRA comes with complex distribution rules that changed significantly under the SECURE Act (2019) and SECURE Act 2.0 (2022). Most non-spouse beneficiaries must now withdraw the entire balance within 10 years. This calculator generates your year-by-year distribution schedule, shows annual RMD amounts, and estimates the tax impact of different withdrawal strategies.
Inherited IRA Details
EDB: disabled, chronically ill, or within 10 years of age of decedent
If 73+, annual RMDs are required in years 1-9 of the 10-year period
Traditional IRA distributions taxed as ordinary income
Year-by-Year Distribution Schedule
| Year | Starting Balance | Growth | Distribution | Est. Tax | Ending Balance |
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For informational purposes only. Inherited IRA rules are complex and fact-specific. Consult a tax professional or estate attorney. Not tax or legal advice.
How to Use the Inherited IRA Calculator
Inheriting an IRA triggers one of the most complex areas of tax law, with rules that changed dramatically under the SECURE Act. The inherited IRA 10-year rule, annual RMD requirements, and beneficiary classifications all affect your distribution obligations. This calculator helps you understand what's required and plan distributions strategically.
Step 1: Identify Your Beneficiary Type
Your distribution rules depend entirely on your relationship to the decedent and your classification as a beneficiary. Surviving spouses have the most flexibility, including the option to roll the inherited IRA into their own account. Non-spouse beneficiaries face the 10-year rule. Eligible designated beneficiaries (those disabled, chronically ill, or not more than 10 years younger than the decedent) can use the life expectancy stretch method.
Step 2: Note the Decedent's Age at Death
Whether the original account owner had reached the RMD starting age (73 under SECURE 2.0) at the time of death affects your annual requirements. If the decedent was already taking RMDs, non-spouse beneficiaries under the 10-year rule must also take annual RMDs in years 1-9 (not just deplete the account by year 10).
Step 3: Choose Your Distribution Strategy
The calculator shows equal annual distributions as a baseline, but you have flexibility in how you structure withdrawals within the 10-year window. Consider taking larger distributions in years when your income is lower, and smaller ones in high-income years to minimize tax bracket impact. If you expect significant income increases (promotion, selling a business), front-load distributions in earlier years.
Step 4: Understanding the Tax Impact
For traditional inherited IRAs and 401ks, all distributions are taxed as ordinary income at your marginal rate. For inherited Roth IRAs, distributions are generally tax-free if the original owner met the 5-year holding requirement. The 10-year deadline cannot be extended — any remaining balance after year 10 is subject to a 25% excise tax under SECURE 2.0.
FAQ
Is this inherited IRA calculator free?
Yes, completely free with no signup required. All calculations run in your browser — your financial data is never sent to any server.
Is my financial data private?
Absolutely. Everything runs entirely in your browser using client-side JavaScript. No data is transmitted or stored anywhere.
What is the 10-year rule for inherited IRAs?
Under the SECURE Act 2.0, most non-spouse beneficiaries must withdraw the entire inherited IRA balance within 10 years of the original owner's death. There are no required annual minimums — you can withdraw any amount each year as long as the account is fully depleted by the end of year 10. However, if the decedent had reached RMD age, annual RMDs are also required in years 1-9.
Who is an eligible designated beneficiary and what rules apply?
Eligible designated beneficiaries (EDBs) include: surviving spouses, minor children of the decedent, disabled or chronically ill individuals, and individuals not more than 10 years younger than the decedent. EDBs can use the life expectancy (stretch) method instead of the 10-year rule, which allows much smaller annual distributions over their lifetime.
Can I roll an inherited IRA into my own IRA?
Only surviving spouses can roll an inherited IRA into their own IRA. All other beneficiaries must maintain the account as an inherited IRA with its own distribution rules. Rolling into your own account as a non-spouse is a taxable distribution and may trigger penalties.
Are Roth inherited IRAs also subject to the 10-year rule?
Yes, Roth IRAs inherited from non-spouse beneficiaries are generally subject to the 10-year rule. However, unlike traditional inherited IRAs, Roth distributions are typically tax-free as long as the original owner met the 5-year holding period. This makes the Roth inherited IRA significantly more valuable since tax-free growth can compound for up to 10 years.
What happens if I miss the 10-year deadline?
Any balance remaining in an inherited IRA after the 10-year window expires is subject to a 25% excise tax (reduced from 50% under SECURE 2.0). The IRS may waive penalties for reasonable cause. If you inherited in 2020 or later, the deadline is the 10th year after the year of the original owner's death.
Should I take distributions evenly over 10 years or all at once?
Spreading distributions over 10 years is almost always better from a tax perspective. Larger withdrawals push you into higher tax brackets. Taking equal annual amounts keeps each distribution in a lower bracket. Consider your other income, tax bracket, and whether the inherited account is traditional (taxable) or Roth (tax-free) when deciding the optimal distribution schedule.