Most people who inherit an IRA today must empty it within 10 years — and since the IRS's 2024 final regulations, some must also take annual distributions along the way. Which group are you in?
The core rule: if the original owner died in 2020 or later and you're not an "eligible designated beneficiary," the entire inherited balance must be withdrawn by December 31 of the year containing the 10th anniversary of the death. And: if the owner had already reached their own RMD age when they died, the IRS (final regulations, July 2024) also requires annual RMDs in years 1–9, each due December 31.
| Situation | Annual RMDs? | Final deadline |
|---|---|---|
| Owner died before their required beginning date (most heirs of working-age owners; all inherited Roth IRAs) | No — take nothing until year 10 if you like | Entire balance by Dec 31 of year 10 |
| Owner died on or after their required beginning date (already taking RMDs) | Yes — years 1 through 9, each due Dec 31 (per the 2024 final regulations) | Annual RMDs years 1–9 plus full balance by Dec 31 of year 10 |
| Owner died in 2019 or earlier (grandfathered "stretch") | Yes — life-expectancy RMDs, as under the old law | Old stretch rules continue |
Year 1 is the calendar year after the year of death. So an owner who died in 2024: years run 2025–2034, final deadline December 31, 2034. Died in 2026? Years 2027–2036, final deadline December 31, 2036.
David, 75 and taking RMDs, dies in 2024. His daughter (age 45 — not an eligible designated beneficiary) inherits $400,000:
These beneficiaries keep the old life-expectancy ("stretch") treatment instead of the 10-year deadline.
The 10-year rule applies to inherited Roths too — but because Roth owners never take lifetime RMDs, there is no "died on or after RMD date" case: no annual RMDs are required, and the full balance must simply be drained by December 31 of year 10. Qualified withdrawals are tax-free, so there's usually no reason to wait the full ten years.