IRS Rules · RMD Timing · June 2026
The best way to withdraw an inherited IRA over 10 years is to confirm the 10-year rule applies, take any annual RMDs required in years 1–9, and spread remaining withdrawals in a tax-aware way — all while ensuring the balance reaches $0 by December 31 of year 10. The strategy changes if the original owner died on or after their required beginning date for RMDs.
The 10-year rule means the inherited IRA must be fully emptied by December 31 of the 10th year after the original owner's death. That deadline is the anchor for every withdrawal plan. See: IRS retirement topics — beneficiary.
But not every beneficiary is treated the same way. The standard 10-year rule applies to most non-spouse designated beneficiaries. Spouses and certain other categories of beneficiaries may have different treatment, depending on the facts and the applicable IRS rules. See: IRS Publication 590-B.
Before you decide how to withdraw, answer these questions:
If you can't answer those cleanly, stop and verify first. A wrong assumption here can cause a withdrawal mistake later.
The key date is not "10 years from when you inherited it." It is December 31 of the 10th year after death. So if the owner died in 2025, the inherited IRA must be emptied by December 31, 2035. That one date drives the whole plan.
A common misunderstanding is that the 10-year rule lets you leave the account untouched for nine years and then empty it in year 10. That is not always correct.
IRS guidance and Publication 590-B show that whether you must take annual RMDs in years 1–9 depends on the facts, including whether the original owner was already in their RMD period when they died. In other words, the 10-year rule is always the final deadline, but it does not always mean "no withdrawals until the end."
Your plan needs two layers:
If you only focus on the final deadline, you may miss required annual withdrawals.
The penalty risk is real. Under IRC §4974, the excise tax for insufficient distributions is 25% of the amount you were supposed to withdraw but didn't. SECURE 2.0 reduced this to 10% if corrected within the IRS's two-year correction window.
The IRS has provided time-limited relief for certain past years under specific transitional conditions, but you should not assume that relief applies to current or future tax years. If a distribution is required, treat it like a deadline, not a suggestion.
For most beneficiaries, the best approach is not one giant withdrawal strategy. It is a calendar-based plan built around compliance first and tax planning second.
If annual RMDs apply, this is usually the default. You take the required amount each year, keep records, and then make sure the balance is fully gone by the year-10 deadline. This is the most conservative approach and usually the safest from a compliance standpoint.
If you have flexibility beyond required minimums, you can often reduce tax spikes by spreading withdrawals over multiple years. Taking too much in one year can push you into a higher bracket. Taking less, when allowed, may help manage the tax bill. But tax planning only comes after compliance — you never want to withdraw less than required just to save taxes.
This is only workable if your situation does not require annual RMDs in years 1–9. Even then, waiting until year 10 creates risk. If you wait too long, a custodian delay, settlement issue, or transfer problem can put you past the deadline. So "later" should still mean "early enough to finish safely."
If the inherited IRA holds physical metals or sits inside a Gold IRA structure, the "best way" is not just about taxes. It is also about liquidation timing.
You may need to:
Because the deadline is December 31 of year 10, you should factor in custodian and settlement cutoffs to make sure the distribution is processed in time. Start the process early enough that the account can be fully emptied by the deadline.
When comparing custodians or dealers, look at setup or inherited account fees, annual custodian fees, storage fees, liquidation or transaction fees, wire or transfer fees, and dealer buy/sell spreads. Do not rely on rough estimates — use the posted fee schedule from the custodian or dealer, and note the date you retrieved it, as fee schedules change.
Some beneficiaries focus on annual distributions and assume they are done as long as they keep taking something each year. Not always.
If the 10-year rule applies, the inherited IRA still has to be fully distributed by year 10. That means your plan needs both the annual check (if applicable) and the final zero-balance check. Think of it as a two-part test.
Spouses often have more options than non-spouse beneficiaries. Confirm your options with IRS guidance before proceeding.
If yes, your distribution rules may differ from the standard non-spouse 10-year clean-out. Verify your category with the custodian and IRS guidance.
If yes, the inherited IRA must be emptied by Dec. 31 of year 10.
If yes, annual RMDs may also be required during years 1–9.
Use the applicable IRS method for your beneficiary category and death/RMD start date. Then use the rest of the years to manage taxes and avoid a rushed year-10 scramble.
| Mistake | Why it matters | Better approach |
|---|---|---|
| Assuming no withdrawals are needed until year 10 | May miss annual RMDs | Confirm the owner's RMD status |
| Counting the deadline wrong | Can cause late distribution | Use death year + 10, with Dec. 31 as the cutoff |
| Withdrawing too little | Can trigger 25% excise tax | Use the required minimum as your floor |
| Waiting too long to liquidate metals | Processing delays can cause missed deadlines | Start early and build in buffer |
| Not documenting distributions | Harder to defend if questioned | Save confirmations and statements |
| Treating an inherited IRA like your own | Inherited IRAs have separate rules | Keep the beneficiary account structure intact |
Good documentation makes compliance much easier. Keep:
If you are claiming a special beneficiary treatment, keep the related documentation too.
For most people, the headline has not changed: the 10-year deadline remains the key rule, but the details around annual RMDs and special beneficiary categories matter.
Not always. It depends on whether annual RMDs apply in your situation. The 10-year rule always sets the final deadline, but some beneficiaries also have annual minimums during years 1–9. This depends on whether the original owner had reached their required beginning date for RMDs before death.
The deadline is December 31 of the 10th year after the year of the original owner's death — not 10 years from the date you inherited it. If the owner died in 2025, the deadline is December 31, 2035.
Under IRC §4974, the excise tax for insufficient distributions is 25% of the amount you were supposed to withdraw but didn't, reduced to 10% if corrected within the IRS's correction window. Treat required distributions like a compliance deadline, not a suggestion.
Match withdrawals to your lower-income years when possible. Inherited IRA distributions are generally taxable as ordinary income and stack on top of wages, Social Security, and other income. Taking too much in one year can push you into a higher bracket. Always satisfy required minimums first, then decide on additional amounts.
Start the liquidation process early. Gold IRAs may require selling metals, waiting for dealer pricing and settlement, and processing the distribution through the custodian — all of which add operational risk relative to the December 31 deadline in year 10. Factor in custodian and settlement cutoffs.