With an Inherited IRA, you may either need to take annual distributions no matter what age you are when you open the account or may be required to fully distribute the assets in the account within a specified number of years, or in some cases a combination of both. These rules don't apply if you've simply transferred another IRA to your own IRA but are specific to Inherited IRAs.
This guidance is also for situations where the IRA account holder died after 2019, and therefore the rules under the SECURE Act apply. You can also review additional information in our Inherited IRA Brochure (SECURE Act compliant).
If the account holder died before 2020, and therefore is not subject to the changes in the SECURE Act, you can learn about distributions options in our Inherited IRA Brochure that covers scenarios prior to the SECURE Act.
Please also note that the below options are for individuals that are specifically named as the beneficiary on the decedent's IRA account. If you are named as the beneficiary in an estate, you should consult your estate executor or trustee.
If you inherit a Traditional, Rollover, SEP, or SIMPLE IRA from a spouse, you have several options, depending on whether your spouse died before or after their required beginning date to start taking Required Minimum Distributions (RMDs). Most commonly, those who inherit an IRA from a spouse transfer the funds to their own IRA.
Note: If the original account holder did not take an RMD in the year of death and they were required to, an RMD must be taken from the account by 12/31 of the year the original account holder died.
If your spouse (the account holder) died before their RMD required begin date, these are your choices:
Expand All Collapse All Option #1: Spousal transfer (treat as your own)Account type:
You transfer the assets into your own existing or new IRA.
Money is available:
At any time, but a penalty will apply to withdrawals made before you reach age 59½.
Other considerations:
Account type:
You transfer the assets into an Inherited IRA held in your name.
Money is available:
RMDs are mandatory, and you have the option to postpone distributions until the later of:
Distributions must begin no later than 12/31 of the year the account holder would have reached 73.
Other considerations:
Account type:
You transfer the assets into an Inherited IRA held in your name.
Money is available:
At any time up until 12/31 of the tenth year after the year in which the account holder died, at which point all assets need to be fully distributed.
Other considerations:
Account type:
None. All assets in the Traditional IRA are distributed to you.
Money is available:
Other considerations:
If your spouse (the account holder) had already reached their required beginning date to start taking RMDs (age 73 and over):
Expand All Collapse All Option #1: Spousal transfer (treat as your own)Account type:
You transfer the assets into your own existing or new IRA.
Money is available:
At any time, but a penalty will apply to withdrawals made before you reach age 59½.
Other considerations:
Account type:
You transfer the assets into an Inherited IRA held in your name.
Money is available:
You must begin taking an annual RMD over your life expectancy beginning no later than 12/31 of the year following the original account holder's death.
Note: If the original account holder did not take an RMD in the year of death, an RMD must be taken from the account by 12/31 of the year the original account holder died.
Other considerations:
Account type:
None. All assets in the Traditional IRA are distributed to you.
Money is available:
Other considerations:
If you are inheriting a Roth IRA as a spouse, you have several options—including opening an Inherited IRA.
Expand All Collapse All Option #1: Spousal transfer (treat as your own)Account type:
You transfer the assets into your own existing or new Roth IRA.
Money is available:
At any time, but earnings generally will be taxable until you reach age 59½ and the five-year holding period has been met.
Other considerations:
Account type:
You transfer the assets into an Inherited Roth IRA held in your name.
Money is available:
RMDs are mandatory and you have the option to postpone distributions until the later of:
Other considerations:
Account type:
The assets are transferred into an Inherited Roth IRA held in your name.
Money is available:
At any time up until 12/31 of the tenth year after the year in which the account holder died, at which point all assets need to be fully distributed.
Other considerations:
Account type:
None. All assets in the Roth IRA are distributed to you.
Money is available:
Other considerations:
If the account is less than five years old at the time of the account holder's death, earnings are taxable.
If you, as an individual, inherited an IRA from someone other than your spouse, there are different withdrawal rules depending upon the type of beneficiary you are (an Eligible Designated Beneficiary or a Designated Beneficiary).
Furthermore, if the beneficiary is a non-individual like an estate, trust, or entity, other rules apply.
If you satisfy one of these above criteria, look below in the section titled "Eligible Designated Beneficiary options (other than a spouse)" to determine your distribution requirements.
If you do not meet the requirements to be considered an Eligible Designated Beneficiary, and the account holder died after 2019, you will be considered a Designated Beneficiary and you will be required to:
Note: If the original account holder did not take an RMD in the year of death and they were required to, an RMD must be taken from the account by 12/31 of the year the original account holder died.
If you inherit a Traditional, Rollover, SEP, or SIMPLE IRA and are an Eligible Designated Beneficiary (other than a spouse) you have several withdrawal options.
If the account holder died before their required beginning date to start taking RMDs, these are your choices:
Expand All Collapse All Option #1: Open an Inherited IRA: Life expectancy methodAccount type:
You transfer the assets into an Inherited IRA held in your name.
Money is available:
RMDs must begin no later than 12/31 of the year after death.
Other considerations:
Account type:
The assets are transferred into an Inherited IRA held in your name.
Money is available:
At any time up until 12/31 of the tenth year after the year in which the account holder died, at which point all assets need to be fully distributed.
Other considerations:
Account type:
None. All assets in the Inherited IRA are distributed to you.
Money is available:
Other considerations:
If the account holder died after their required beginning date to start taking RMDs, these are your choices:
Expand All Collapse All Option #1: Open an Inherited IRA: Life expectancy methodAccount type:
You transfer the assets into an Inherited IRA held in your name.
Money is available:
RMDs must start by 12/31 of the year after death.
Note: If the original account holder did not take an RMD in the year of death, an RMD must be taken from the account by 12/31 of the year the original account holder died.
Other considerations:
Account type:
None. All assets in the IRA are distributed to you.
Money is available:
Other considerations:
If you inherit a Roth IRA and are considered to be an Eligible Designated Beneficiary (other than a spouse) you have several withdrawal options:
Expand All Collapse All Option #1: Open an Inherited Roth IRA: Life expectancy methodAccount type:
You transfer the assets into an Inherited Roth IRA held in your name.
Money is available:
Other considerations:
Account type:
The assets are transferred into an Inherited Roth IRA held in your name.
Money is available:
At any time up until 12/31 of the tenth year after the year in which the account holder died, at which point all assets need to be fully distributed.
Other considerations:
Account type:
None. All assets in the Roth IRA are distributed to you.
Money is available:
Other considerations:
If the beneficiary is not an individual (such as an estate, charity, or organization):
Note: If the original account holder did not take an RMD in the year of death and they were required to, an RMD must be taken from the account by 12/31 of the year the original account holder died.
Ready to move an Inherited IRA to your own IRA?
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