Inherited IRA Calculator
The SECURE Act ended the stretch IRA for most people. If you inherited an IRA from someone other than a spouse, you generally have ten years to empty it — and how you spread those withdrawals is worth far more than how you invest them.
The 10-year rule
For most non-spouse beneficiaries of someone who died after 2019, the entire account must be distributed by 31 December of the tenth year following the year of death. There is no annual minimum in the classic sense — but under the final regulations issued in 2024, if the original owner had already begun required minimum distributions, the beneficiary must also take annual RMDs during years one to nine, and still empty the account in year ten. Enforcement of that annual requirement began with the 2025 tax year.
If the owner died before their required beginning date, no annual RMDs apply — only the year-ten deadline.
Spreading it evenly is usually the answer
Emptying a $400,000 inherited IRA in one year can push a mid-career beneficiary from the 24% bracket into the 35% bracket. Spreading it across ten years keeps each slice smaller.
| Strategy | On $400,000 | Typical outcome |
|---|---|---|
| Lump sum in year one | $400,000 of income | Worst case — often two brackets higher |
| Even tenths | About $40,000 a year | Usually the default best answer |
| Front-loaded into low-income years | Variable | Best if you retire, take a sabbatical or have a low-income year inside the window |
| Wait and take it all in year ten | $400,000 of income | Common mistake — the deadline arrives with the whole bill |
The calculator above is set to $3,600 a month, which is roughly a tenth of a $400,000 balance each year with growth continuing. Inflation is set to zero because the distribution schedule is nominal, not inflation-linked.
Who is exempt from the 10-year rule
- Surviving spouses. A spouse may treat the IRA as their own, roll it over, or remain a beneficiary — much more flexible, and usually the best outcome.
- Minor children of the deceased. Stretch until majority, then the 10-year clock starts. Grandchildren do not qualify.
- Disabled or chronically ill beneficiaries. Full life-expectancy stretch.
- Beneficiaries not more than 10 years younger than the deceased — typically a sibling or partner.
Rules that catch people out
- You cannot roll an inherited IRA into your own IRA unless you are the spouse. Doing so is treated as a full taxable distribution.
- Inherited Roth IRAs also face the 10-year rule, but withdrawals are tax free — so the right strategy is the opposite: leave it untouched and empty it in year ten after a decade of tax-free growth.
- There is no 10% early-withdrawal penalty on an inherited IRA, whatever your age.
- The 50% penalty for a missed RMD is now 25%, reduced to 10% if corrected promptly.
How the calculator works
Each month the balance earns one month of return, then the withdrawal is taken out. Every 12 months the withdrawal is increased by the inflation rate so your spending power stays level. If you enter a tax rate, each withdrawal is grossed up so the after-tax amount you keep matches the number you typed. The calculator stops when the balance hits zero, or after 100 years if it never does.
The "to last 20 / 25 / 30 years" figures are solved by bisection: the largest starting withdrawal that still survives that horizon under the same return and inflation assumptions.
Frequently asked questions
What is the 10-year rule for inherited IRAs?
Most non-spouse beneficiaries of an account owner who died after 2019 must fully distribute the inherited IRA by the end of the tenth year after the year of death. If the owner had already started required minimum distributions, annual RMDs are also required in years one to nine.
Do I have to take money out every year?
Only if the original owner had reached their required beginning date. Otherwise the account simply has to be empty by year ten. Even where annual withdrawals are not required, spreading them out is usually the lower-tax choice.
Is an inherited IRA taxable?
Distributions from an inherited traditional IRA are ordinary income to the beneficiary. Inherited Roth IRAs are tax free, though the 10-year deadline still applies — which is why the best strategy for an inherited Roth is to leave it growing until year ten.
Can I roll an inherited IRA into my own?
Only a surviving spouse can. For anyone else the account must stay titled as an inherited IRA; moving it into your own IRA is treated as a complete distribution and taxed in full that year.
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SavingsLast calculators are educational estimates. They assume a constant average return and steady inflation; real markets are volatile and sequence-of-returns risk can shorten how long money lasts. Nothing here is financial, investment, tax, or legal advice. Consult a qualified professional before making decisions.