Beneficiary Checklist · SECURE Act · June 2026
After inheriting an IRA, start with four moves: confirm whether you're a spouse or non-spouse beneficiary, get the account titled correctly as an inherited IRA, map the withdrawal rule that applies to you, and check custodian fees before you move or withdraw anything. Many non-spouse beneficiaries face the 10-year rule; some may qualify for other IRS-allowed exceptions.
Your first job after inheriting an IRA is to confirm two things: your relationship to the deceased owner and the type of IRA account. That single step drives the rest of the decision tree. Spouses generally have more options than non-spouses, and some non-spouse beneficiaries may qualify for IRS-allowed exceptions to the general 10-year rule.
The IRS says beneficiary designation controls the payout framework for inherited accounts. If the original owner died after 2019, the SECURE Act inherited IRA rules are generally the starting point. Publication 590-B (2025) and the IRS required minimum distribution FAQs are the core references for those rules.
At the highest level, the IRS rules split beneficiaries into groups:
That is the first fork in the road. Get this wrong and the rest of the plan can be off.
After inheriting an IRA, make sure the account is titled and administered the right way before you take money out. A spouse may be able to roll the account into their own IRA or treat it as their own. A non-spouse beneficiary generally needs an inherited IRA structure.
Ask the custodian for written confirmation of:
A good question to ask is: "Please confirm in writing how this inherited IRA will be titled and what IRS distribution rule you are applying."
If you are not the spouse, do not assume you can handle the inherited account like your own IRA. That mistake is common, and it can create tax and timing problems. The safest move is to keep the account in inherited form and follow the IRS distribution framework tied to your status.
For many non-spouse beneficiaries, the key rule is the 10-year rule: the inherited IRA must be fully distributed by the end of the year that contains the 10th anniversary of the owner's death. Certain beneficiaries may qualify for a different method, such as a life-expectancy-based payout.
If the 10-year rule applies, the account must be fully distributed by December 31 of the year containing the 10th anniversary of the owner's death. If the required distribution or depletion is not satisfied, the IRS can assess an excise tax under the applicable inherited IRA rules; the penalty rate regime was reduced by SECURE 2.0 for years beginning after 12/31/2023.
If the IRA owner died in 2019: the 10th anniversary year is 2029, and the account generally must be empty by December 31, 2029. Verify your specific beneficiary category and dates with Pub. 590-B.
Do not assume Roth means "no rules." Inherited Roth IRAs can still be subject to timing rules like the 10-year framework. The difference is that tax treatment may be more favorable if Roth requirements are met.
The smartest way to handle an inherited IRA is to turn the IRS rules into a calendar. That helps you avoid last-minute problems with custodian processing, year-end cutoffs, and deadline confusion.
In the year you inherit the IRA, focus on setup: confirm beneficiary status, confirm Traditional vs. Roth, get the account titled correctly, ask the custodian which rule applies, ask about inherited-account fees, and record the 10th anniversary year if the 10-year rule applies.
Depending on your beneficiary category and the payout method the IRS requires, you may or may not have annual RMD amounts. Many people choose to take distributions gradually rather than waiting until the end. That can help spread taxable income, avoid a huge year-end sale, and reduce processing stress. Keep a record of distribution dates, amount taken, Form 1099-R, and remaining balance.
This is the year that matters most under the 10-year rule. Do not wait until the last minute. A practical rule is to initiate distribution requests early enough to ensure the distribution meets the deadline under IRS rules and your custodian's cutoff schedule.
Traditional inherited IRA distributions are generally taxable income; Roth inherited IRA distributions may be tax-free if IRS rules are satisfied. That difference can materially change the value of the inheritance and the withdrawal strategy.
For a Traditional IRA, distributions are generally taxable when you take them. Larger withdrawals can push more income into a higher bracket.
Roth inherited IRAs can be different. Distributions from an inherited Roth IRA may be tax-free if the inherited Roth rules are met. But "tax-free" does not mean "rule-free." The timing framework still matters.
Your custodian generally reports IRA distributions on Form 1099-R. Review the form codes and box entries with your tax documents. Keep the form with your tax records and make sure it matches the account type and the distribution you received. If the reporting looks off, ask the custodian for clarification before filing.
If you miss or underpay a required distribution, the IRS can assess an excise tax. SECURE 2.0 reduced the penalty regime, but the risk did not disappear.
For tax years beginning after Dec. 31, 2023, IRS guidance reflecting SECURE 2.0 shows:
If there is a failure, correction can involve IRS Form 5329. The IRS instructions for that form are the place to verify how the penalty is reported and corrected.
Inherited IRA fees can eat into the value of the account, especially if you are deciding whether to keep the assets in cash, invest them, or move them into a Gold IRA structure. Ask for the fee schedule before you make a transfer or distribution plan.
Request the custodian's current fee schedule and look for:
If the account will hold precious metals, also ask about storage fee, segregated storage fee, insurance or vault fee, and dealer markup or spread on purchase and resale.
Moving inherited IRA funds into a Gold IRA does not make the inherited distribution rules disappear. The IRS payout schedule still applies. The 10-year clock still runs. Any annual distribution obligations still matter.
If you want to move inherited IRA assets, ask the custodian to do a direct transfer or otherwise follow the proper movement for your beneficiary situation into the appropriate inherited IRA vehicle. Avoid any strategy that would be treated as a distribution. Before you do anything: confirm the receiving account is allowed for your beneficiary situation, confirm the inherited IRA schedule is still being followed, get the process in writing from the custodian, and keep records of all movement and reporting forms.
Confirm your relationship to the deceased owner (spouse or non-spouse) and the type of IRA account (Traditional or Roth). That single step drives the rest of the decision tree, including whether the 10-year rule applies and what distribution options are available to you.
Generally, no. Non-spouse beneficiaries cannot treat an inherited IRA like their own rollover IRA. The account generally must be kept in inherited form and follow the IRS distribution framework tied to your status. That mistake is common and can create tax and timing problems.
Under IRS rules reflecting SECURE 2.0, the excise tax for missed or insufficient required minimum distributions is 25% of the required amount, reduced to 10% if corrected within the correction window (for tax years beginning after Dec. 31, 2023). Correction may involve IRS Form 5329.
Distributions from an inherited Roth IRA may be tax-free if the inherited Roth rules are met, but that does not mean rule-free. The timing framework — including the 10-year rule where applicable — still matters. Check the specific IRS rules before assuming tax-free treatment.
Collect the death certificate, latest IRA statement, custodian inheritance packet, beneficiary designation paperwork, account opening paperwork showing Traditional or Roth, and any spouse or beneficiary status documents the custodian asks for.