SECURE Act · IRS Publication 590-B · June 2026
For many non-spouse beneficiaries, the inherited IRA must be fully distributed by the end of the 10th year after the IRA owner's death. But whether annual withdrawals in years 1–9 are required depends on the beneficiary type and whether the owner died before or after their required beginning date. This is the most commonly misunderstood part of the rule.
The IRS's inherited IRA rule is often summarized too casually. The real rule is a timing requirement: most non-spouse designated beneficiaries must finish taking the money out by the end of the 10th year after the IRA owner dies. That means the account cannot simply sit untouched forever, and in some cases it cannot legally be deferred all the way to year 10 either.
A simple way to think about it:
For non-EDB designated beneficiaries, the IRS generally requires full distribution by the end of the 10th year after the IRA owner's death. If you miss the deadline, the IRS may impose an excise tax for failure to take required minimum distributions, subject to IRS correction procedures. See IRS Publication 590-B (2025) for the current penalty language.
Some beneficiaries are Eligible Designated Beneficiaries (EDBs), which can include a qualifying surviving spouse, certain disabled or chronically ill beneficiaries, and certain minor children under special rules. These beneficiaries may use different distribution methods, including life-expectancy-style rules in some cases.
So the first question is not "How do I stretch the money?" It is: What kind of beneficiary am I under IRS rules?
Many articles describe inherited IRA planning as if you can simply wait nine years and then drain the account in year 10. That is not always true.
For inherited IRA cases covered by IRS guidance, whether annual RMDs are required during years 1–9 depends on the beneficiary category and whether the IRA owner died before or after their required beginning date (RBD).
If the decedent died on or after their RBD, annual RMDs may be required during the 10-year window. That means years 1–9 are not "free years." You may need to take a required amount each year, and then fully empty the account by year 10.
In certain inherited IRA cases, annual RMDs may not be required during years 1–9 if the decedent died before their RBD, but the account must still be fully distributed by the end of year 10.
Two beneficiaries can both hear "10-year rule" and still have very different withdrawal obligations. That's why the strategy has to start with the facts, not the headline.
A compliant strategy comes down to two IRS decision points:
If you are a non-EDB, you are usually in the standard 10-year framework. If you are an EDB, you may qualify for different treatment. That is why a good inherited IRA plan starts with the beneficiary designation paperwork and the applicable IRS category.
For inherited IRA cases subject to the 10-year framework:
This is the part most simplified explainers leave out.
When annual RMDs are required, the mechanics matter. The IRS generally uses the December 31 account balance from the prior year and divides it by the applicable factor from the IRS tables in Publication 590-B.
That is why year-end statements matter so much. The amount you must withdraw is tied to the prior year's balance, not today's market value.
If an RMD is required and you take too little, or none at all, the IRS may impose an excise tax penalty. Before acting on any distribution plan, check the current penalty language in IRS Publication 590-B (2025) and speak with a qualified tax professional if you need help correcting a missed amount.
Find out whether you are a non-spouse designated beneficiary, an EDB, a surviving spouse, or another category with special rules.
This determines whether annual RMDs may apply during years 1–9.
Once you know the rule set, decide whether you are planning a required annual withdrawal schedule during years 1–9, or a distribution schedule with a year-10 full distribution deadline. If annual RMDs apply during years 1–9, you cannot choose to wait until year 10.
Distributions from a traditional inherited IRA are generally taxable as ordinary income. If you can control timing within the rules, it may help manage taxable income.
Save the death certificate, beneficiary designation records, custodian account setup confirmation, annual statements, and withdrawal confirmations. Good documentation helps prevent mistakes.
If annual RMDs apply, the plan is not about choosing any withdrawal pattern you want. You must satisfy the annual minimum and then decide whether to take anything extra. That extra planning is where tax management comes in — you may want to avoid bumping yourself into a higher bracket in one year if you can legally spread withdrawals out.
If your situation allows flexibility in years 1–9, that does not mean you can ignore the account until the end. You still need to make sure the inherited IRA is fully distributed by the year-10 deadline. In that case, the strategy is usually about pacing — spreading distributions to manage taxes while ensuring the deadline is met.
A custodian can help with administration, but don't assume the first answer is the whole answer. Ask:
In general, the tax and RMD timing rules for inherited IRAs are determined by IRS beneficiary and RMD rules; a gold or precious-metals IRA mainly changes how distributions are executed.
If the account holds physical metals, you may have:
That matters because an inherited IRA withdrawal strategy is only useful if you can actually get the cash out on time. Always confirm timing expectations with your custodian and review IRS rules for your situation.
Inherited IRA rules have gone through clarifications over time, and the current planning baseline should be IRS Publication 590-B (2025). The IRS also published guidance on the application of these rules for calendar years beginning on or after January 1, 2025.
That is important because outdated checklists can oversimplify the 10-year rule or miss the annual RMD distinction. If you are making withdrawals now, rely on the current IRS publication and related FAQ pages rather than older blog posts or forum summaries.
Annual RMDs may apply during years 1–9, and the account still must be fully distributed by the end of year 10. Your strategy is a compliance schedule first, tax management second.
The account may allow more flexibility in years 1–9. You still need a plan to avoid a large last-minute withdrawal before the end of year 10.
An EDB may qualify for a different distribution method. That means the inherited IRA 10-year withdrawal strategy may not be the right label for your account at all. Verify your category with IRS guidance before proceeding.
Not always. If annual RMDs apply in years 1–9, you may need to take distributions before year 10. Whether that happens depends on your beneficiary status and whether the owner died before or after their required beginning date, according to IRS Publication 590-B (2025).
Eligible designated beneficiaries (EDBs) may qualify for different treatment. EDB categories can include a qualifying surviving spouse, certain disabled or chronically ill beneficiaries, and certain minor children under special rules. Check IRS Publication 590-B and the IRS RMD FAQ pages for the current category rules.
The IRS generally uses the December 31 account balance from the prior year divided by the applicable life expectancy factor from the IRS tables in Publication 590-B. The beneficiary must use the right inherited IRA rule set for their category.
Under IRS rules reflecting SECURE 2.0, the excise tax for missed or insufficient required minimum distributions is 25%, reduced to 10% if corrected within the correction window. Confirm the current penalty language in IRS Publication 590-B (2025) before acting on any distribution plan.
A Gold IRA changes the execution of distributions. Physical metals must be sold, potentially through dealer channels, before cash is available. Depository/storage fees, custodian fees, and dealer spreads all apply. Plan distributions early enough that settlement doesn't create a missed-deadline risk.