Printable checklist for your desk
Print this checklist, fill in each account and beneficiary, and bring it to our meeting or your attorney.
Download the PDF (large print)The short version. Most people who inherit an IRA or a 401(k) from someone who died after 2019 must empty it by the end of the tenth year after the death. A few categories get more time. Whether you must also take yearly withdrawals inside those ten years depends on whether the owner had already started required withdrawals.
Who gets more than ten years?
The law calls them eligible designated beneficiaries. Their status is fixed on the date of death. [1, 2]
- A surviving spouse
- A minor child of the account owner (until reaching majority)
- A disabled individual
- A chronically ill individual
- Someone not more than 10 years younger than the owner
These beneficiaries can generally spread withdrawals over the longer of their own life expectancy or the owner's remaining life expectancy. When a minor child reaches majority, the ten-year clock starts. [1, 2]
Yearly withdrawals inside the ten years
| If the owner died... | What the ten-year beneficiary must do |
|---|---|
| Before starting required withdrawals | No yearly amount is required in years one through nine. Everything must be out by December 31 of year ten. |
| On or after starting required withdrawals | Yearly withdrawals are required in years one through nine, and the account must be empty by December 31 of year ten. |
The final IRS regulations apply to years beginning in 2025. The IRS waived penalties for missed yearly withdrawals under this rule for 2021 through 2024. [2, 3, 4]
Spouse options
A surviving spouse who is the sole beneficiary generally can: [1, 5]
- Treat the IRA as their own
- Roll it into their own IRA, or to the extent it is taxable, a qualified plan
- Stay on as the beneficiary, which can mean delaying withdrawals until the owner would have reached the required age, depending on the owner's situation
- Elect, under SECURE 2.0, to be treated as the deceased owner for withdrawal purposes
Which choice fits depends on the spouse's age, income needs, and tax picture. The choice is easy to make by accident, because skipping a required withdrawal or adding money can mean you are treated as having made the account your own.
Rules for everyone else
- A non-spouse cannot treat an inherited IRA as their own, cannot add to it, and cannot roll money into or out of it. The only way to move it is a direct transfer to another inherited IRA still in the owner's name. [5]
- With several beneficiaries on one account, the oldest one's life expectancy can control unless separate accounts are set up by December 31 of the year after death. [5]
- An estate or other non-person generally has no designated beneficiary and faces a faster payout. [5]
- Money inherited in a traditional IRA is "income in respect of a decedent." It does not get a step-up in basis the way a house or stock might. If estate tax was paid, the beneficiary may be able to deduct part of it. [6]
Inherited Roth accounts
The original Roth owner has no required withdrawals during life, but beneficiaries are subject to the after-death rules above. A qualified distribution is tax-free once the five-year clock from the owner's first Roth contribution is met. Ask your tax professional how the yearly and ten-year deadlines apply to a specific Roth account. [7]
Trusts as beneficiaries
A trust can qualify as a "see-through" beneficiary if it is valid under state law, becomes irrevocable at death, has identifiable beneficiaries, and the documents reach the account company on time. A conduit trust passes withdrawals straight out. An accumulation trust can keep them inside. Trusts add complexity, so bring your attorney into the conversation. [5, 2]
A beneficiary review you can do this week
- List every retirement account, IRA, and workplace plan you have, and the named primary and contingent beneficiary on each. The beneficiary form controls who gets the account, not your will.
- Check that each name is current after any marriage, divorce, birth, or death.
- If a spouse is named, check whether other names alongside the spouse change the options.
- Note whether any beneficiary is a minor, disabled, or a trust, and whether the paperwork reflects that.
- Ask each account company for a copy of the current form and keep it with your records.
- Review the mix of traditional and Roth money from the beneficiary's point of view.
Frequently asked questions
How long do I have to empty an inherited IRA?
Most people who inherit from someone who died after 2019 must empty the account by the end of the tenth year after the death. Eligible designated beneficiaries get more time.
Who is an eligible designated beneficiary?
A surviving spouse, a minor child of the owner, a disabled or chronically ill individual, or someone not more than 10 years younger than the owner.
Do inherited IRAs get a step-up in basis?
No. Traditional IRA money is income in respect of a decedent and does not get a step-up like a house or stock might.
Sources and review notes
General education, not individualized investment, tax, or legal advice. Discuss tax decisions with your tax professional, and recheck annual limits before using this page for another tax year.