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Repair Windows errors before they cause bigger problemsFix Now →Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Clear out junk files and repair common Windows errorsFree Scan →The IRS finalized major required minimum distribution (RMD) rules in 2024, and they generally apply to distribution years beginning January 1, 2025. For inherited IRAs, the key point is that a 10-year deadline does not always mean a beneficiary can wait until the final year: depending on the beneficiary’s status and when the owner died relative to the required beginning date, annual distributions may also be required.
What changed in the IRS inherited IRA rules?
The Treasury Department and IRS issued final RMD regulations in July 2024. The rules update requirements affected by the SECURE Act and SECURE 2.0 Act and cover qualified retirement plans, section 403(b) arrangements, IRAs, and certain deferred compensation plans. The final regulations generally apply to distribution calendar years beginning on or after January 1, 2025. The Federal Register published the rule on July 19, 2024; the IRS announced it the day before.
The rules do not give every inherited IRA beneficiary the same schedule. The result depends on the beneficiary’s classification, the owner’s date of death and required beginning date, the account type, and the distribution method that applies.
When must I empty an inherited IRA?
The 10-year deadline
Many designated beneficiaries who are not eligible designated beneficiaries must empty the account by December 31 of the year containing the 10th anniversary of the owner’s death. IRS Publication 590-B (2025) gives this example: if the owner dies in 2025 and the 10-year rule applies, the account generally must be fully distributed by December 31, 2035.
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Do I have to take an RMD from an inherited IRA every year?
Sometimes. The 10-year deadline and annual RMDs can apply together, but not in every case. The owner’s required beginning date—the point by which the owner was required to start taking distributions—is a key factor in the rules described by the IRS.
| Situation | What the IRS materials say |
|---|---|
| The 10-year rule applies, and the owner died before their required beginning date | Publication 590-B says no distribution is required for a year before the tenth year under this rule. The account still must be fully distributed by the applicable 10-year deadline. |
| The owner died on or after their required beginning date | The final regulations prescribe annual beneficiary distributions in relevant cases. Whether this applies to a particular beneficiary depends on the applicable beneficiary rule. |
| The beneficiary is an eligible designated beneficiary | A life-expectancy option may be available; a 10-year election is available in specified cases. The applicable option depends on the facts and governing rules. |
The table describes general rules, not an individual calculation. The precise amount and timing cannot be determined from the death date alone: confirm the beneficiary category, applicable method, and account details.
What if the beneficiary is the surviving spouse?
A surviving spouse has distinct options. Depending on the circumstances, the spouse may be able to elect to treat the inherited IRA as their own, or continue as a beneficiary under the rules for inherited accounts. Those choices can affect distribution timing and requirements. Consult IRS Publication 590-B and the IRA’s terms, and ask the custodian or trustee how the account is administered before making an election or requesting a distribution.
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1Clear out junk files and repair common Windows errors2Scan for outdated or missing drivers - takes under a minute3Repair Windows errors before they cause bigger problemsWhat was the 2024 transition relief, and what remains pending?
Specified RMDs for 2024
Notice 2024-35 addressed specified RMDs for 2024 and stated that Treasury and the IRS intended the final regulations to apply from 2025. This was limited transition relief for the specified distributions; it did not repeal the 10-year distribution deadline.
Separate proposed-rule provisions
The 2024 final regulations did not finalize every related RMD provision. IRS Announcement 2026-7 says certain sections addressed in separate 2024 proposed regulations are anticipated to apply no earlier than the distribution calendar year beginning at least six months after those future final regulations are published in the Federal Register. Until that applicability date, taxpayers must apply “a reasonable, good-faith interpretation of the statutory provisions underlying the regulations.” Therefore, the general 2025 applicability date for the 2024 final rule should not be treated as the effective date for every related RMD issue.
How are inherited IRA distributions taxed?
Tax treatment depends on the account and distribution. Distributions from a traditional IRA are generally included in the recipient’s gross income to the extent they are taxable. The applicable treatment for a particular inherited account depends on its type and facts; do not assume every distribution has the same tax result.
If a required distribution is missed, an excise tax may apply to the shortfall, subject to applicable tax rules and relief provisions. IRS Publication 590-B cautions inherited traditional IRA beneficiaries about this consequence.
What to check before taking or postponing a distribution
- Identify the beneficiary category. Determine whether you are a surviving spouse, an eligible designated beneficiary, or another designated beneficiary; the available schedules differ.
- Confirm the account and owner details. Establish whether the account is a traditional or Roth IRA, the owner’s date of death, and whether the owner had reached the required beginning date.
- Find the applicable distribution method and deadline. Check whether the 10-year rule, a life-expectancy method, or another applicable rule governs, and whether annual distributions are due before the final deadline.
- Check for a distribution due for the year of death. Do not assume the beneficiary’s later schedule resolves any amount that may have been due for that year.
- Review account documents and administration details. Consult the IRA agreement and ask the custodian or trustee about account-specific provisions and any spouse election procedures.
- Verify current IRS guidance for your circumstances. Publication 590-B (2025) explains IRA distribution rules and examples, but it does not replace advice based on the beneficiary’s facts.
These checks help identify which rules to apply; they do not calculate an individual RMD. When the applicable category, deadline, or taxable amount is unclear, consult a qualified tax adviser.
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