Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
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Tax if withdrawn as lump sum in year 10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
$422,370
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How to use this
- 1Enter inherited ira balance ($).
- 2Enter expected annual investment return (%).
- 3Enter your current marginal tax rate (%).
- 4Enter marginal rate on a big lump-sum year (%).
- 5Read your tax saved spreading evenly vs. lump sum at end on the right — it updates as you type.
- 6Hit Share to keep the scenario or send it to someone.
About this calculator
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.
Worked example
Using the values the calculator loads with:
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 %
Results
- 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- Tax if withdrawn as lump sum in year 10: $147,829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: $422,370
What each field means
Inputs
- Inherited IRA balance ($)
- The inherited ira balance used in the calculation, measured in $. Starts at 250000 $ so you have a working example on load.
- Expected annual investment return (%)
- The expected annual investment return used in the calculation, measured in %. Starts at 6 % so you have a working example on load. Accepted range: 0–12 %.
- Your current marginal tax rate (%)
- The your current marginal tax rate used in the calculation, measured in %. Starts at 24 % so you have a working example on load. Accepted range: 0–50 %.
- Marginal rate on a big lump-sum year (%)
- The marginal rate on a big lump-sum year used in the calculation, measured in %. Starts at 35 % so you have a working example on load. Accepted range: 0–50 %.
Results
- Tax saved spreading evenly vs. lump sum at end
- Returned as a money amount in US dollars and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Total tax, even withdrawals over 10 years
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Tax if withdrawn as lump sum in year 10
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Balance if left to grow 9 years first
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
Do I have to take money out every single year of the 10-year window?
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.
Are spouses subject to the 10-year rule?
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.
Why does timing withdrawals matter so much?
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.
What if the inherited account is a Roth IRA instead?
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.
Accuracy and 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.
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Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). Inherited IRA 10-Year Rule Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/inherited-ira-10-year-rmd
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/inherited-ira-10-year-rmd" target="_blank" rel="noopener">Inherited IRA 10-Year Rule Calculator — RevenueLab</a> (2026).</p>
Source: [Inherited IRA 10-Year Rule Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/inherited-ira-10-year-rmd) (2026).