Important Timelines
(Updated for 2025 – IRS Guidelines & SECURE Act Rules)
When you inherit an IRA or Roth IRA, the rules you follow depend on two main factors:
- Your relationship to the original account holder (spouse vs. non-spouse)
- Whether the account owner had already begun Required Minimum Distributions (RMDs)
This guide breaks down each scenario in plain language so you can avoid costly mistakes and make the most of your inheritance.
Inheriting an IRA from Your Spouse
(Before They Began RMDs)
They passed away before April 1 of the year after they turned 73.)
You have three options:
- Treat the IRA as Your Own
- Roll it into your existing Traditional IRA or retitle it in your name.
- Your RMDs won’t start until you turn 73—allowing maximum tax-deferred growth.
- You can contribute if it’s now in your name.
Best for: Spouses who want to keep growing the account long-term.
- Remain a Beneficiary
- Keep it as an Inherited IRA – Spouse Beneficiary.
- Delay RMDs until the year your spouse would have turned 73.
- Helpful if you’re under 59½ and may need withdrawals— there’s no early withdrawal penalty.
- 10-Year Distribution Option
- You can withdraw all funds by December 31 of the 10th year after your spouse’s death.
- This is optional for spouses, unlike non-spouse beneficiaries who must follow the 10 year rule.
Non-Spouse IRA Inheritance Rules
(Includes adult children, siblings, grandchildren, friends)
Whether you inherit a Traditional IRA, SEP IRA, or SIMPLE IRA, the rules are the same.
The SECURE Act 10-Year Rule (Default)
- You must empty the account within 10 years of the original owner’s death.
- No annual Required Minimum Distributions (RMDs) are required during the 10 years, but the entire balance must be withdrawn by the end of year 10.
Exceptions: Eligible Designated Beneficiaries (EDBs)
Certain non-spouse beneficiaries can stretch distributions over their lifetime:
- Minor children (until they reach majority—usually 18)
- Disabled individuals
- Chronically ill individuals
- Beneficiaries within 10 years of the owner’s age (e.g., a sibling close in age)
If the Owner Had Started RMDs Before Death
- In all cases, you must continue taking annual RMDs (based on your life expectancy) until the 10th year, when the balance must be fully withdrawn.
- Clarified by IRS Notice 2022-53 for deaths in 2020 or later.
Key Rules for Non-Spouse Beneficiaries
- No rolling into your own IRA – it must remain an “Inherited IRA”
- No contributions allowed
- No 10% early withdrawal penalty – you can withdraw at any age without penalty
- Taxes still apply to Traditional, SEP, and SIMPLE, IRA withdrawals
Titling Requirement
Must include the original owner’s name:
“John Smith (deceased 03/01/2024) IRA FBO Jane Smith, Beneficiary”
Inheriting a Roth IRA If You’re the Spouse
- Treat as Your Own – No RMDs during your lifetime, tax-free withdrawals if account is 5+ years old.
- Remain a Beneficiary – 10-year withdrawal window, but no taxes if 5-year rule met.
- Take a Lump Sum – No penalty or taxes (if 5-year rule met).
Inheriting a Roth IRA If You’re a Non-Spouse
- Must open an Inherited Roth IRA in the deceased’s name with you as beneficiary.
- 10-year rule applies – account must be emptied by year 10.
- Withdrawals remain tax-free if the account is at least 5 years old.
Exceptions (EDBs)
Same as Traditional IRA—minor children, disabled, chronically ill, or within 10 years of age of original owner.
Quick Comparison Table
| Rule | Spouse | Non-Spouse |
| Roll into own IRA | ✅ Yes | ❌ No |
| Remain Beneficiary | ✅ Yes | ✅ Yes |
| 10-Year Rule | Optional | ✅ Required |
| RMDs | Only if keeping as beneficiary IRA | No (unless owner had started RMDs) |
| Contributions allowed | ✅ Yes (if own) | ❌ No |
| Early withdrawal penalty | Yes, if own & under 59½ | ❌ No |
Final Takeaways
- Spouses have the most flexibility—choose the path that best matches your age, tax situation, and income needs.
- Non-spouse beneficiaries must carefully follow the 10-year rule unless they qualify for exceptions.
- Roth IRAs can provide tax-free growth and withdrawals, making them powerful legacy tools.
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