Inherited IRA Calculator

How to Use This Calculator

1. Enter the inherited account balance and select your beneficiary type.
2. If you are a non-spouse beneficiary, the 10-Year Rule applies — the calculator shows annual distribution options.
3. Use Spouse Rollover tab to model rolling into your own IRA and deferring RMDs to age 73.
4. Use Eligible Designated Beneficiary tab if you qualify for the lifetime stretch (disabled, chronically ill, or within 10 years of owner's age).
5. Use Professional for total tax burden and missed-RMD penalty calculations.

Formula

Example

Frequently Asked Questions

• What is the 10-year rule for inherited IRAs? ▼
  Under the SECURE Act (2019), non-spouse beneficiaries who inherited an IRA after December 31, 2019 must withdraw the entire balance by December 31 of the 10th year following the original owner's death. There is no requirement for equal annual withdrawals — the beneficiary can take any amount in any year, as long as the full balance is out by year 10.
• Are annual RMDs required within the 10-year period? ▼
  If the original owner died before their required beginning date (before starting RMDs at age 73), no annual distributions are required within the 10-year window. If the owner died after their required beginning date, the IRS requires annual RMDs in years 1-9 based on the beneficiary's life expectancy, plus full liquidation by year 10.
• Who qualifies as an Eligible Designated Beneficiary (EDB)? ▼
  EDBs can use the lifetime stretch IRA method instead of the 10-year rule. EDB categories include: the surviving spouse, a minor child of the deceased (until age of majority, then 10-year rule), a disabled or chronically ill individual, and a beneficiary not more than 10 years younger than the deceased.
• What is the penalty for missing an inherited IRA RMD? ▼
  SECURE 2.0 reduced the missed RMD penalty from 50% to 25% of the amount not distributed. If corrected within 2 years (the correction window), the penalty is further reduced to 10%.
• Can a spouse treat an inherited IRA as their own? ▼
  Yes. A surviving spouse has the unique option to roll the inherited IRA into their own IRA. This delays RMDs until the spouse's own RMD age (73 for those born 1951-1959), and the normal beneficiary rules apply when the spouse later dies.

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