Under SECURE Act 2.0, most inherited IRAs must be emptied within 10 years. See how much to withdraw each year to drain it on time and spread the tax hit evenly. ✓ SECURE 2.0
10-year rule • Even drawdown
Since the SECURE Act, most non-spouse beneficiaries (such as adult children) must empty an inherited IRA within 10 years of the original owner's death — the old "stretch IRA" is gone. If the owner had already begun RMDs, you must also take annual RMDs in years 1–9 based on your life expectancy, then drain the rest by year 10.
Because every withdrawal is taxable income, taking it all in year 10 can spike you into a high bracket. Spreading withdrawals evenly across the window usually minimizes total tax — that's the level amount this calculator suggests. Eligible designated beneficiaries (spouses, minor children, disabled or chronically ill) follow different rules. Estimate only; not tax advice.
The SECURE Act of 2019 fundamentally changed inherited retirement accounts. Most non-spouse beneficiaries who inherited after 2019 must empty the account within ten years, replacing the old "stretch IRA" that allowed distributions over a lifetime. Where the original owner had already begun RMDs, annual distributions are also required during those ten years, not just a balloon at the end. Because every dollar from an inherited traditional IRA is ordinary income, the planning question is how to spread it across ten tax years without spiking into higher brackets — and the worst outcome is taking it all in year ten.
Ten-year rule: account must be empty by 31 December of the 10th year after deathAnnual RMD (if required) = Prior year-end balance ÷ single life expectancy factorEven spreading: Balance ÷ years remainingEligible designated beneficiaries may still stretch over life expectancywhere:
Assumptions: Spouses have separate, more favourable options including treating the IRA as their own. Inherited Roth IRAs must also be emptied in ten years but generate no income tax, so deferring to year ten is optimal there and usually wrong for a traditional IRA.
Compare even spreading against a year-ten lump sum for a beneficiary in the 24% bracket.
ResultEven spreading saves roughly $114,000 against a year-ten lump sum
The instinct to defer tax as long as possible is exactly wrong for a large inherited traditional IRA, because the ten-year deadline forces a single enormous income event. Spread withdrawals to fill your current bracket each year and stop at its ceiling.