Who counts as an eligible designated beneficiary exempt from the 10-year rule?

The SECURE Act created a special category called eligible designated beneficiaries who escape the strict 10-year payout. This group includes the surviving spouse, the account owner's minor child (until they reach the age of majority, after which the 10-year clock starts), a disabled person, a chronically ill person, and any beneficiary not more than 10 years younger than the deceased. These beneficiaries can generally stretch distributions over their own life expectancy.

Everyone else, adult children, grandchildren, most other heirs, is a designated beneficiary subject to the 10-year rule. Non-person beneficiaries like a poorly drafted trust or an estate face even faster payout. Because classification changes the tax picture dramatically, confirm your status against current IRS guidance at irs.gov and coordinate with an advisor.