Inherited IRA Calculator
The rules for withdrawing from an inherited IRA changed significantly with the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 and its follow-up legislation SECURE 2.0 in 2022. Most adult non-spouse beneficiaries who inherited an IRA after 2019 must now deplete the entire account within 10 years of the original account owner's death, rather than spreading distributions over their own lifetime using the prior stretch IRA method. If the original owner died on or after their required beginning date (April 1 of the year following the year they turned 73), non-eligible designated beneficiaries must also take annual required minimum distributions in each of the first nine years, with the remaining balance withdrawn by the end of year 10. Surviving spouses and certain eligible designated beneficiaries including minor children, disabled individuals, chronically ill individuals, and those no more than 10 years younger than the deceased can still use stretch IRA rules tied to their own life expectancy. This calculator models the 10-year depletion schedule for a non-spouse beneficiary, letting you enter the inherited balance, the expected annual return, your planned annual withdrawal amount in years 1 through 9, and your federal marginal tax rate. It projects the year-by-year balance, annual distribution, and cumulative income tax owed under your chosen withdrawal strategy.
An inherited balance of $250,000 for a non-EDB beneficiary with a 10-year depletion period and 6% expected return requires annual withdrawals of roughly --.
How inherited IRA calculations work
The SECURE Act (2019) and SECURE 2.0 (2022) introduced a mandatory 10-year rule for most beneficiaries: the entire inherited IRA must be depleted by December 31 of the 10th year following the year of death.
If the original owner had not yet reached their Required Beginning Date (RBD, April 1 of the year after age 73), you can take any withdrawal strategy within the 10 years (lump sum, equal installments, or nothing until year 10). If the owner had reached RBD, you must take Required Minimum Distributions in years 1-9, plus any additional amounts needed to fully deplete by year 10.
This calculator assumes equal annual withdrawals over the 10-year period, growing at the specified rate. The account balance decreases as you withdraw and the remaining balance continues to earn returns.
r = annual return / 100
annual withdrawal = (opening balance * r + opening balance) / years remaining
ending balance = opening balance + growth - withdrawal
tax per year = annual withdrawal * marginal rate
Inherited IRA tax and planning strategies
Inherited IRA distributions are taxed as ordinary income in the year received. Unlike contributions to a Traditional IRA, there is no deduction available. This means a large inherited account can push you into a higher tax bracket in any single year.
One strategy to minimize tax impact is to spread withdrawals evenly over the 10-year window, or to take larger withdrawals in lower-income years. Some beneficiaries take nothing until year 10, then take a large lump sum (potentially triggering a higher bracket that year). Others withdraw equal amounts to smooth the tax impact. If you face a large inherited IRA, consult a tax professional to design a withdrawal strategy aligned with your other income and tax circumstances.
Surviving spouses have a unique advantage: they can roll the inherited IRA into their own IRA, treating it as if they had always owned it. This defers RMDs until age 73 and allows continued tax deferral. For most spouses, the rollover is the optimal choice.
Inherited IRA calculator: frequently asked questions
What are the SECURE Act 2019 and SECURE 2.0 rules for inherited IRAs?
The SECURE Act (2019) and SECURE 2.0 (2022) changed inherited IRA rules significantly. Most adult beneficiaries who inherit after 2019 are now subject to the 10-year rule: the entire account must be depleted within 10 years of the owner's death. If the owner died on or after their Required Beginning Date (RBD, age 73), you must also take annual Required Minimum Distributions in years 1-9. Spouses, minor children, disabled or chronically ill beneficiaries, and those not more than 10 years younger have different rules and may use stretch IRA strategies.
What is the Required Beginning Date (RBD)?
The RBD is April 1 of the year after the original owner turns 73 (age changed to 73 effective 2023 via SECURE 2.0; it was 72 before). If the owner died on or after their RBD, beneficiaries who are subject to the 10-year rule must take annual RMDs in years 1-9 in addition to depleting the account by year 10. If the owner died before their RBD, no annual RMDs are required; you only need to empty the account by the end of year 10.
Who can use the stretch IRA strategy?
The stretch IRA (taking distributions over your lifetime) is available only to Eligible Designated Beneficiaries (EDBs). These include the deceased's spouse (who can also roll to their own IRA), minor children of the deceased (until age 21, then 10-year rule applies), disabled beneficiaries, chronically ill beneficiaries, and persons not more than 10 years younger than the deceased. Most adult children, siblings, and friends are not EDBs and must use the 10-year rule.
What if I inherit as a spouse?
Spouses have the most flexibility. You can roll the inherited IRA into your own IRA (treating it as if you always owned it, with RMDs beginning at age 73). Alternatively, you can keep it as an inherited IRA and take RMDs based on your life expectancy. This decision should consider your age, other sources of income, and tax planning goals. A spouse rollover typically defers taxes longest.
Can I delay withdrawals under the 10-year rule?
Yes. If you are subject to the 10-year rule, you can take no distributions in years 1-9 (assuming the owner died before RBD). The account continues to grow tax-deferred. However, you must fully deplete the account by the end of year 10. Many beneficiaries use a strategy of minimal distributions early and a lump sum withdrawal in year 10, or uniform annual withdrawals over 10 years. If the owner died after RBD, you must take annual RMDs each year 1-9.
How is inherited IRA income taxed?
Distributions from inherited Traditional IRAs are taxed as ordinary income at your marginal tax rate. Inherited Roth IRAs are tax-free to you (the distributions were after-tax in the original owner's account). The tax is due in the year you withdraw, regardless of when the original owner made contributions. This can create significant tax liability in years with large distributions.
Official sources
- IRS Publication 590-B (Distributions from Individual Retirement Arrangements): Publication 590-B.
- IRS SECURE Act FAQ: Tax inflation adjustments for 2025.
- IRS Notice 2022-53 (SECURE 2.0 guidance): Notice 2022-53 PDF.
Reviewed by the CalculatorHub team, edited by James Graham, 13 June 2026. See our methodology. General information, not financial advice.