Free inherited IRA distribution calculator. Estimate required distributions under the SECURE Act 10-year rule and tax impact by year.
The SECURE Act of 2019 fundamentally changed inherited IRA distribution rules. Most non-spouse beneficiaries must now distribute the entire inherited IRA within 10 years of the owner's death. This replaced the previous "stretch IRA" strategy that allowed distributions over the beneficiary's lifetime.
Spouse beneficiaries, minor children, disabled individuals, and beneficiaries less than 10 years younger than the decedent are exempt from the 10-year rule and may still use longer distribution periods. Understanding the distribution requirements helps beneficiaries minimize tax impact through strategic timing.
This calculator estimates annual distributions and their tax impact under both level and strategic distribution approaches.
Legal professionals, business owners, and individuals alike benefit from transparent inherited ira distribution calculations when evaluating obligations, settlements, or compliance requirements. Bookmark this page and return whenever circumstances change so you always have current figures at your fingertips.
From contract negotiations to dispute resolution, having reliable inherited ira distribution numbers at your disposal strengthens your position and streamlines decision-making. Adjust the inputs to reflect your unique circumstances and run the calculation as many times as needed to cover every plausible scenario.
From contract negotiations to dispute resolution, having reliable inherited ira distribution numbers at your disposal strengthens your position and streamlines decision-making. Adjust the inputs to reflect your unique circumstances and run the calculation as many times as needed to cover every plausible scenario.
Strategic distribution timing can save thousands in taxes on inherited IRAs by managing which years you take distributions to stay in lower tax brackets. Instant recalculation as you change inputs lets you model multiple scenarios quickly, giving you the data foundation needed for well-informed legal and financial decisions. No registration or login is required, and you can return to this page anytime to re-run calculations as laws, rates, or circumstances evolve. No registration or login is required, and you can return to this page anytime to re-run calculations as laws, rates, or circumstances evolve.
Level Distribution = IRA Balance / Years Remaining Tax Per Year = Annual Distribution × (Federal Rate + State Rate) Total Tax = Sum of Annual Taxes Over 10 Years
Result: $50,000/year, $145,000 total tax
$500,000 distributed evenly over 10 years = $50,000/year. At combined 29% rate (24% federal + 5% state), annual tax is $14,500, totaling $145,000 over 10 years.
Even distribution: $50K/year for 10 years. Front-loaded: $100K/year for 5 years, $0 for 5 years. Back-loaded: $0 for 7 years, $167K/year for 3 years. Bracket-optimized: varies based on other income each year. Each strategy has different total tax implications.
Before the SECURE Act, beneficiaries could stretch distributions over their lifetime (often 30–50 years). The 10-year rule compresses distributions, potentially pushing beneficiaries into higher tax brackets. This makes inherited retirement accounts less tax-efficient than before.
Multiple beneficiaries: The IRA can be split into separate inherited IRAs by 12/31 of the year after death. Each beneficiary then follows their own distribution schedule. Trust beneficiaries: Distribution rules depend on trust type (conduit vs. accumulation).
Under the SECURE Act, most non-spouse beneficiaries must fully distribute an inherited IRA by December 31 of the 10th year following the original owner's death. There are no required minimum distributions within those 10 years — you can distribute on any schedule as long as the account is empty by the deadline.
Eligible designated beneficiaries are exempt: surviving spouses, minor children (until age of majority), disabled or chronically ill individuals, and beneficiaries not more than 10 years younger than the decedent. These beneficiaries can use longer stretch distribution periods.
The IRS has issued proposed regulations requiring annual RMDs if the original owner had already started RMDs. This is still being finalized. If the owner died before their required beginning date, annual RMDs are not required within the 10-year window.
Only surviving spouses can roll an inherited IRA into their own IRA. Non-spouse beneficiaries must maintain the account as an inherited IRA. Rolling it over would be a taxable distribution plus potential penalties.
Failure to distribute the full balance by the deadline triggers a 25% penalty on the amount that should have been distributed (reduced from the previous 50% penalty by SECURE 2.0). Timely correction can reduce this to 10%.
Strategic distribution is usually better. Take larger amounts in low-income years and smaller amounts in high-income years. Some beneficiaries defer most distributions to years 8–10, while others front-load. Model your specific tax situation.