How does the inherited IRA 10-year rule work under the SECURE Act?
Most non-spouse beneficiaries who inherit a traditional or Roth IRA after 2019 must empty the account within 10 years of the original owner's death. The old "stretch IRA," which let heirs spread withdrawals over their own lifetime, is gone for most people. For traditional IRAs, every dollar withdrawn is ordinary income, so a large inheritance can push you into higher brackets if you wait and drain it in year 10. If the original owner had already started required minimum distributions, the IRS now also requires annual RMDs in years 1 through 9, with the balance gone by year 10. A smart approach is to spread withdrawals across the decade to smooth the tax hit, ideally during your own lower-income years. Certain beneficiaries (spouses, minor children, the disabled or chronically ill) are exempt and follow different rules.