{
  "slug": "inherited-ira-10-year-rmd",
  "title": "Inherited IRA 10-Year Rule Calculator",
  "heading": "Inherited IRA 10-Year Drawdown Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/inherited-ira-10-year-rmd",
  "summary": "Model how to spread inherited IRA withdrawals across the 10-year SECURE Act window.",
  "description": "Under the SECURE Act, most non-spouse beneficiaries who inherit an IRA after 2019 must empty the account within 10 years of the original owner's death (with some beneficiaries also owing annual RMDs within that window if the original owner had already started theirs). This calculator models a few withdrawal strategies over the 10-year window — even distributions, or a lump-sum-at-the-end approach — and estimates the tax impact of each given your other income, since dumping a large inherited IRA balance into taxable income in your peak earning years can push you into much higher brackets than spreading withdrawals evenly across a decade. The best strategy usually means withdrawing more in low-income years and less in high-income years within the 10-year window, not necessarily equal amounts each year.",
  "formula": "Even strategy: annual withdrawal = balance ÷ 10, grown balance reduces each year. Lump-sum-at-end: balance grows untouched for 9 years then withdrawn fully in year 10. Tax estimate = withdrawal × marginal rate stacked on other income for each scenario.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=inherited-ira-10-year-rmd",
  "inputs": [
    {
      "id": "balance",
      "label": "Inherited IRA balance",
      "kind": "number",
      "hint": null,
      "default": 250000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "returnRate",
      "label": "Expected annual investment return",
      "kind": "number",
      "hint": null,
      "default": 6,
      "unit": "%",
      "min": 0,
      "max": 12
    },
    {
      "id": "marginalRate",
      "label": "Your current marginal tax rate",
      "kind": "number",
      "hint": null,
      "default": 24,
      "unit": "%",
      "min": 0,
      "max": 50
    },
    {
      "id": "lumpSumRate",
      "label": "Marginal rate on a big lump-sum year",
      "kind": "number",
      "hint": null,
      "default": 35,
      "unit": "%",
      "min": 0,
      "max": 50
    }
  ],
  "outputs": [
    {
      "id": "evenTaxAdvantage",
      "label": "Tax saved spreading evenly vs. lump sum at end",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "evenTax",
      "label": "Total tax, even withdrawals over 10 years",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "lumpTax",
      "label": "Tax if withdrawn as lump sum in year 10",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "lumpBalance",
      "label": "Balance if left to grow 9 years first",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Inherited IRA balance: 250000 $",
      "Expected annual investment return: 6 %",
      "Your current marginal tax rate: 24 %",
      "Marginal rate on a big lump-sum year: 35 %"
    ],
    "outputs": [
      "Tax saved spreading evenly vs. lump sum at end: $87,829",
      "Total tax, even withdrawals over 10 years: $60,000",
      "Tax if withdrawn as lump sum in year 10: $147,829",
      "Balance if left to grow 9 years first: $422,370"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter inherited ira balance ($).",
      "Enter expected annual investment return (%).",
      "Enter your current marginal tax rate (%).",
      "Enter marginal rate on a big lump-sum year (%).",
      "Read your tax saved spreading evenly vs. lump sum at end on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "balance": 150000,
        "returnRate": 3.5999999999999996,
        "marginalRate": 14,
        "lumpSumRate": 21
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "balance": 250000,
        "returnRate": 6,
        "marginalRate": 24,
        "lumpSumRate": 35
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "balance": 400000,
        "returnRate": 9.600000000000001,
        "marginalRate": 38,
        "lumpSumRate": 50
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "Do I have to take money out every single year of the 10-year window?",
      "a": "It depends on whether the original account owner had already started RMDs before death. If they had, current IRS guidance (following 2024 final regulations) generally requires the beneficiary to take annual RMDs during years 1–9 in addition to emptying the account by year 10. If the owner died before their RMD start date, most beneficiaries can wait and withdraw any amount in any pattern, as long as the account is empty by the end of year 10."
    },
    {
      "q": "Are spouses subject to the 10-year rule?",
      "a": "No. A surviving spouse has more flexible options, including treating the inherited IRA as their own, which allows RMDs based on their own life expectancy rather than the 10-year rule. The 10-year rule primarily applies to non-spouse beneficiaries like adult children."
    },
    {
      "q": "Why does timing withdrawals matter so much?",
      "a": "Every dollar withdrawn from an inherited traditional IRA is ordinary taxable income stacked on top of your regular income. Withdrawing unevenly to fill up lower tax brackets in years when your income dips (between jobs, a sabbatical, early retirement before Social Security) rather than dumping it all at once in your peak-earning years can save real money in aggregate tax paid."
    },
    {
      "q": "What if the inherited account is a Roth IRA instead?",
      "a": "Non-spouse beneficiaries still generally must empty a Roth IRA within 10 years, but qualified withdrawals from an inherited Roth are tax-free, so the timing question becomes about investment growth and required minimum distribution rules rather than tax-bracket management."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/sepp-72t-withdrawal",
    "https://www.revenuelab.fyi/toolbox/qualified-charitable-distribution",
    "https://www.revenuelab.fyi/toolbox/asset-location-tax-efficiency"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Inherited IRA 10-Year Rule Calculator (https://www.revenuelab.fyi/toolbox/inherited-ira-10-year-rmd)"
}