Inherited IRA Calculator: 10-Year Rule, RMDs and Tax (2026)
Most people who inherit an IRA from someone who died in 2020 or later must empty it by the end of the 10th year after the death. Since 2025, many of them must also take a yearly minimum along the way. This calculator shows your deadline, your required 2026 withdrawal and how much tax you can save by spreading withdrawals instead of taking it all at once.
Usually yes if the owner was 73 or older. If you are not sure, ask the IRA custodian.
The 10-year rule in plain English
- Who it applies to: most non-spouse beneficiaries (adult children, grandchildren, siblings, friends) of an owner who died in 2020 or later.
- The deadline: the account must be empty by December 31 of the 10th year after the year of death. Death in 2024 means a 2034 deadline.
- Yearly minimums: if the owner had already started required minimum distributions, you must also take a minimum every year in years 1 to 9. The IRS waived these for 2021 to 2024, so they apply from 2025.
- If the owner died before starting RMDs: no yearly minimum, but the account must still be empty by the deadline.
- Roth IRAs: no yearly minimum, and withdrawals are usually tax-free, but the 10-year deadline still applies.
Who can still stretch withdrawals over life expectancy
"Eligible designated beneficiaries" are not forced into the 10-year rule: a surviving spouse, a minor child of the owner (until 21), a disabled or chronically ill person, and anyone not more than 10 years younger than the owner.
Examples (federal tax, 5% growth)
| Situation | Tax: equal shares (rate) | Tax: all in 2026 (rate) | Extra kept by spreading |
|---|---|---|---|
| $500,000, owner died 2024 after starting RMDs, single, $90,000 income | $141,297 (23.1%) | $158,664 (31.7%) | $64,138 |
| $250,000, owner died 2022, single, $60,000 income | $59,423 (20.4%) | $66,614 (26.6%) | $20,857 |
| $300,000, owner died 2025, married, $120,000 income, 5% state | $88,881 (23.6%) | $83,228 (27.7%) | $19,808 |
| $1,000,000, owner died 2023, married, $150,000 income, 5% state | $331,179 (27.7%) | $370,410 (37.0%) | $131,022 |
Extra kept compares the after-tax money each plan leaves you by the deadline, with money taken out early growing at the same 5% outside the IRA.
How the yearly minimum is calculated
Find your age in the year after the owner died in the IRS Single Life Expectancy Table. Divide the balance at the end of the previous year by that number. Each later year, subtract 1 from the number. Example: you were 51 in 2025 (factor 35.3). For 2026, use 34.3, so a $500,000 balance needs a withdrawal of about $14,577.
IRS Single Life Expectancy Table (selected ages)
| Age | Factor | Age | Factor | Age | Factor |
|---|---|---|---|---|---|
| 30 | 55.3 | 40 | 45.7 | 50 | 36.2 |
| 31 | 54.4 | 41 | 44.8 | 51 | 35.3 |
| 32 | 53.4 | 42 | 43.8 | 52 | 34.3 |
| 33 | 52.5 | 43 | 42.9 | 53 | 33.4 |
| 34 | 51.5 | 44 | 41.9 | 54 | 32.5 |
| 35 | 50.5 | 45 | 41.0 | 55 | 31.6 |
| 36 | 49.6 | 46 | 40.0 | 56 | 30.6 |
| 37 | 48.6 | 47 | 39.0 | 57 | 29.8 |
| 38 | 47.7 | 48 | 38.1 | 58 | 28.9 |
| 39 | 46.7 | 49 | 37.1 | 59 | 28.0 |
| 60 | 27.1 | 70 | 18.8 | 80 | 11.2 |
| 61 | 26.2 | 71 | 18.0 | 81 | 10.5 |
| 62 | 25.4 | 72 | 17.2 | 82 | 9.9 |
| 63 | 24.5 | 73 | 16.4 | 83 | 9.3 |
| 64 | 23.7 | 74 | 15.6 | 84 | 8.7 |
| 65 | 22.9 | 75 | 14.8 | 85 | 8.1 |
| 66 | 22.0 | 76 | 14.1 | 86 | 7.6 |
| 67 | 21.2 | 77 | 13.3 | 87 | 7.1 |
| 68 | 20.4 | 78 | 12.6 | 88 | 6.6 |
| 69 | 19.6 | 79 | 11.9 | 89 | 6.1 |
Ways to lower the tax on an inherited IRA
- Spread it out. Equal withdrawals keep more of the money in lower tax brackets.
- Use low-income years. Take more in a year when you retire, change jobs or have a gap in pay.
- Watch the cliffs. A big withdrawal can raise Medicare premiums (IRMAA) and cut ACA health subsidies.
- Do not miss a yearly minimum. The penalty is 25% of the amount missed, cut to 10% if you correct it in time.
On Medicare? Check the effect of a big withdrawal with the Medicare IRMAA calculator. See your bracket in the federal income tax calculator.
How this calculator works
It plans every year from 2026 to your deadline. The yearly minimum uses your age in the year after the death and the IRS Single Life Expectancy Table, reduced by 1 each year. Extra tax is the 2026 federal income tax on your other income plus the withdrawal, minus the tax without it, plus your state rate. Brackets are kept at 2026 levels. If the owner was younger than you, the minimum may use the owner's remaining life expectancy instead, which can be lower. This is an estimate, not tax advice.
FAQ
What is the 10-year rule for inherited IRAs?
Most non-spouse beneficiaries of an IRA owner who died in 2020 or later must empty the account by December 31 of the 10th year after the year of death.
Do I have to take an RMD from an inherited IRA every year?
Yes, if the owner had already started required minimum distributions. You must take a minimum in years 1 to 9 under the 10-year rule, starting in 2025. If the owner died before starting RMDs, no yearly minimum is required.
How is the inherited IRA RMD calculated?
Divide the prior year-end balance by your factor from the IRS Single Life Expectancy Table, using your age in the year after the death and subtracting 1 for each later year.
Is an inherited IRA taxable?
Withdrawals from a traditional inherited IRA are taxed as ordinary income, but there is no 10% early withdrawal penalty. Inherited Roth withdrawals are usually tax-free.
What is the penalty for missing an inherited IRA RMD?
A 25% excise tax on the amount you should have taken, reduced to 10% if you take it and correct it within the correction window.
Rules and rates last checked: October 2026. This is an estimate for general information only, not financial, tax or legal advice. Check IRS.gov or a tax professional before you file.