--- title: "The 10-Year Rule for Beneficiaries: Planning Strategies" source: https://www.perissosprivatewealth.com/insights/the-10-year-rule-for-beneficiaries-planning-strategies publisher: Perissos Private Wealth Management published: 2026-09-21T05:00:00+00:00 updated: 2026-09-21T05:00:02.22947+00:00 topics: 10-Year Rule for Beneficiaries, inherited IRA withdrawal strategies, 10-year rule inherited IRA RMDs, beneficiary tax planning, nonspouse IRA beneficiary rules license: Educational content. Cite with attribution. Not personalized financial, tax, or legal advice. --- # The 10-Year Rule for Beneficiaries: Planning Strategies ## Quick answer The 10-year rule usually requires many nonspouse beneficiaries to fully distribute an inherited IRA by December 31 of the tenth year after death, with annual RMDs often required if the owner died on or after the required beginning date. A prudent strategy compares legal minimums, tax brackets, and cash-flow needs year by year. ## Key takeaways - For many nonspouse individual beneficiaries of owners who died after 2019, an inherited traditional IRA must be emptied by December 31 of the year containing the tenth anniversary of death. - If the original owner died before the required beginning date, the 10-year rule generally does not require distributions in years 1 through 9, though the account still must usually be fully distributed by year 10. - If the original owner died on or after the required beginning date, annual RMDs generally apply during the 10-year window in addition to the final deadline. - In the article’s hypothetical example, a $1 million inherited traditional IRA could be withdrawn as $100,000 annually for 10 years or as a single $1 million distribution in year 10, creating very different income patterns. - A nonspouse beneficiary generally cannot roll an inherited IRA into their own IRA, but a trustee-to-trustee transfer may preserve inherited IRA treatment when the account is titled correctly. # The 10-Year Rule for Beneficiaries: Planning Strategies *A withdrawal schedule is also a tax and cash-flow decision* September 21, 2026 An inherited IRA can create a tax problem when the beneficiary waits until the final year to act. The law may allow that timing in some cases, but a large final distribution can collide with wages, investment income, or a retirement transition. The planning task is to meet the legal minimum **and** choose a sensible path for the rest. 1 ## Establish the actual deadline and annual minimum For many nonspouse individual beneficiaries of owners who died after 2019, an inherited traditional IRA must be emptied by December 31 of the year containing the tenth anniversary of death. If the original owner died before their required beginning date, the ten-year rule generally does not require distributions in years one through nine. If the owner died on or after that date, annual RMDs generally apply during the window. Eligible designated beneficiaries, trusts, estates, and older inheritances may follow different rules. 1,2 These legal minimums are the floor, not necessarily the best tax schedule. A beneficiary may generally take more than the annual minimum or empty the account sooner. Taxable traditional IRA withdrawals are included in gross income to the extent the account has no basis, so the annual amount interacts with the beneficiary's other income. The applicable federal income tax system is progressive: a higher marginal bracket applies only to the next layer of taxable income. 2,3 ## Compare schedules before selecting one Figure 1 compares two **hypothetical** schedules for a $1 million inherited traditional IRA where the owner died before the required beginning date. Assume no investment growth, no account basis, no distributions in the year of death, and no state or federal tax calculation. Equal $100,000 annual withdrawals spread the balance across ten years. Waiting makes the entire $1 million payable in year ten. Both schedules meet the stated ten-year emptying deadline, but they create very different annual income patterns. Actual portfolio returns and any required annual RMDs would change the numbers. 1,2 I would test the beneficiary's projected income year by year. A temporary low-income period may justify a larger withdrawal. A high-income year may favor only the required minimum. Medicare premium effects, credits, estimated tax payments, and a future spouse's or heir's position can also matter. A level ten-year withdrawal is a comparison point, not a universal recommendation. ## Keep the account and tax records clean A nonspouse beneficiary generally cannot roll the inherited IRA into their own IRA; a trustee-to-trustee transfer can preserve inherited treatment when the account is correctly titled. If the decedent had nondeductible IRA contributions, basis records are important because they affect the taxable portion. If the IRA is Roth, beneficiary distribution timing still applies, while tax treatment requires a separate five-year earnings check. 2 The schedule should be revisited annually with the beneficiary's CPA and, if a trust is named, the estate attorney. Account values change, tax law changes, and life events can make last year's withdrawal target stale. ## Closing My preferred starting point is a ten-year calendar showing the mandatory distribution in each year, a projected income range, and the balance left to distribute. Then we can compare deliberate withdrawals with the cost of postponing them. That turns a deadline into a manageable planning decision. All my best, Brandon VanLandingham, CFA, CMT, CFP Founder / CIO ## Related Reading [Medicare IRMAA: How to Avoid the 'Tax' on High-Income Retirees](/insights/medicare-irmaa-high-income-retiree-strategies) [What HNW Retirees Get Wrong About Required Minimum Distributions](/insights/hnw-retirees-required-minimum-distributions-mistakes) [Lifetime Gifting Strategies for Families With $10M+](/insights/lifetime-gifting-strategies-high-net-worth-families) ## Citations - Treasury and IRS, final required minimum distribution regulations, 89 FR 58886, accessed September 18, 2026. https://www.irs.gov/irb/2024-33_IRB - IRS, Publication 590-B (2025) , "IRA Beneficiaries" and "10-year rule," accessed September 18, 2026. https://www.irs.gov/publications/p590b - IRS, "Federal income tax rates and brackets," accessed September 18, 2026. https://www.irs.gov/filing/federal-income-tax-rates-and-brackets ## Important Disclosures This piece is educational. It is not legal, tax, or accounting advice and is not a recommendation to take or refrain from any specific action. Tax law is fact-specific and changes regularly. Please coordinate any decisions discussed here with your attorney, your CPA, and Perissos before acting. Perissos Private Wealth Management is a Registered Investment Adviser ("RIA"). Registration as an investment adviser does not imply a certain level of skill or training, and the content of this communication has not been approved or verified by the United States Securities and Exchange Commission or by any state securities authority. Perissos Private Wealth Management renders individualized investment advice to persons in a particular state only after complying with the state's regulatory requirements, or pursuant to an applicable state exemption or exclusion. All investments carry risk, and no investment strategy can guarantee a profit or protect from loss of capital. Past performance is not indicative of future results. The information contained in this newsletter is intended to provide general information about market themes. It is not intended to offer investment advice. Investment advice will only be given after a client engages our services by executing the appropriate investment services agreement. Information regarding investment products and services is given solely to provide education regarding our investment philosophy and our strategies. You should not rely on any information provided in making investment decisions. Market data, articles and other content in this material are based on generally available information and are believed to be reliable. Perissos Private Wealth Management does not guarantee the accuracy of the information contained in this material. Perissos Private Wealth Management will provide all prospective clients with a copy of our current Form ADV, Part 2A (Disclosure Brochure), Part 2B (Supplemental Brochures), and Part 3 (Client Relationship Summary) prior to commencing an advisory relationship. You can also view these documents at any time at adviserinfo.sec.gov or by contacting us requesting a copy. ## Frequently asked questions ### Do all inherited IRAs require withdrawals every year under the 10-year rule? No. If the original owner died before their required beginning date, years one through nine generally do not require annual distributions, although the account usually must still be emptied by the end of year ten. ### Why can waiting until year ten create a tax problem? A large final-year inherited traditional IRA distribution can stack on top of wages, investment income, or retirement-transition income and increase taxable income in that year. ### Can a nonspouse beneficiary roll an inherited IRA into their own IRA? Generally, no. A correctly titled trustee-to-trustee transfer can preserve inherited IRA treatment, but a nonspouse beneficiary usually cannot combine the assets with their own IRA. --- Source: [Perissos Private Wealth Management](https://www.perissosprivatewealth.com/insights/the-10-year-rule-for-beneficiaries-planning-strategies) — fee-only fiduciary wealth management in Bethany, Oklahoma. 405.212.9690. This article is educational and is not personalized financial, tax, legal, or investment advice.