Inherited IRA RMD Calculator (10-Year Rule & Beneficiary IRA Estimator)

Beneficiary Classification

Your Current Age (as of Dec 31)

Years Since Original Owner Passed Away (0 = Died this year)

Inherited Account Balance (Dec 31 of prior year) ($)

For Reference Only

These figures are estimates based on standard formulas. Your actual numbers will depend on your lender, location, credit profile, and current market rates. Always confirm with a licensed professional before making financial decisions.

Calculation Results

2026 Annual Inherited IRA RMD

$13,157.89

Calculated using IRS Single Life Expectancy Table (Table I)

Monthly Drawdown

$1,096.49/mo

Single Life Divisor

26.6

10-Year Rule Countdown:8 Year(s) Left

Under IRS regulations, the entire remaining balance of this account must be 100% liquidated by December 31 of Year 10.

Year 2 of 10. You must empty the account by Year 10.

Put This Number to Work

A calculator result is only useful if you act on it. Use these figures as a baseline — then compare them against real loan offers, run different scenarios, and see how small changes in rate or term shift your total cost significantly.

How to Calculate Inherited IRA RMDs Under the 10-Year Rule (2026 IRS Rules)

If you have inherited a Traditional or Roth IRA, our inherited ira rmd calculator (beneficiary ira rmd calculator) helps you navigate the complex post-SECURE Act distribution rules and final IRS Treasury regulations. Calculating your mandatory withdrawal correctly prevents the 25% IRS missed-RMD penalty and allows you to plan your distributions strategically across lower income years.

Final IRS Regulations on Inherited IRAs

The IRS issued final regulations settling the 10-year rule controversy: If the original account owner passed away on or after their Required Beginning Date (RBD), non-spouse beneficiaries must take annual RMDs in years 1 through 9 based on their single life expectancy factor, with the entire remaining balance liquidated by the end of Year 10.

IRS Single Life Expectancy Table (Table I Key Ages)

Used specifically for Inherited IRAs and Beneficiary Required Minimum Distributions.

Age 2560.7 yrs

Age 3055.9 yrs

Age 3551 yrs

Age 4046.2 yrs

Age 4541.5 yrs

Age 5036.8 yrs

Age 5532.2 yrs

Age 6027.7 yrs

Age 6523.3 yrs

Age 7019.1 yrs

Age 7316.7 yrs

Age 7515.2 yrs

Age 8011.6 yrs

Age 858.7 yrs

Age 906.2 yrs

Age 954.4 yrs

Age 1003 yrs

Source: IRS Publication 590-B Table I (Single Life Expectancy).

💼 Worked Example: Brandon's $450,000 Inherited IRA Strategy

Consider Brandon, age 48, a civil engineer in Raleigh, North Carolina. In late 2024, Brandon inherited a $450,000 Traditional IRA from his father, who passed away at age 76 (well after his father's Required Beginning Date of age 73). Under the final IRS Treasury regulations (TD 9992), Brandon is classified as a Designated Non-Spouse Beneficiary.

Brandon's Dual Obligation Under IRS Rules:

The "At Least As Rapidly" Rule: Because his father was already taking RMDs, Brandon cannot simply let the money sit untouched. He must take annual RMDs in Years 1 through 9.
Single Life Factor & Reduction Rule: Brandon turned 47 in 2025 (the year following death). His initial life expectancy factor from IRS Table I was 38.8. In 2026 (Year 2), he does not look up his new age—IRS rules require subtracting 1.0 from the initial factor: 38.8 − 1.0 = 37.8.
Year 2 (2026) Mandatory RMD: $450,000 balance ÷ 37.8 = $11,905 minimum taxable withdrawal.
The Year 10 Liquidation Cliff: By December 31, 2034, the remaining balance must be reduced to exactly $0.

The Tax Bracket Smoothing Strategy:

If Brandon only withdraws the minimum ~$12,000 each year, a 6% annual return would cause the account to grow to over $520,000 by Year 10. Emptying $520,000 in a single tax year would spike Brandon into the top 37% federal tax bracket. Instead, Brandon elects to take roughly $55,000 each year across the 10-year window, keeping his distributions entirely within his current 24% bracket and saving over $48,000 in lifetime taxes.

📐 Calculation Methodology & Table I Mechanics

For non-spouse beneficiaries subject to annual distributions, the mandatory withdrawal amount is determined by the prior year December 31 balance divided by the adjusted distribution factor:

RMD_Year_t = (Prior Year Dec 31 Balance) ÷ [Initial Table I Factor − (t − 1)]

Unlike the Uniform Lifetime Table used by account owners (which recalculates every year), the Single Life Expectancy Table (Table I) is referenced strictly once in Year 1. For every subsequent year, the initial factor is reduced by exactly 1.0. Failing to take the full required amount triggers a 25% excise tax penalty under IRC Section 4974 (reducible to 10% if corrected within the statutory window).

Understanding the Three Beneficiary Categories

Maximum Flexibility

Surviving Spouses

Can roll the inherited IRA into their own account (delaying RMDs to their own age 73/75) or remain a beneficiary and use Single Life Expectancy with annual recalculation.

Lifetime Stretch

Eligible Beneficiaries (EDBs)

Minor children (until 21), disabled individuals, and beneficiaries not >10 years younger can stretch withdrawals over their lifetime using Table I without recalculation.

10-Year Liquidation

Non-Spouse Beneficiaries

Most adult children, grandchildren, and friends. Must fully empty the inherited account by Dec 31 of the 10th year following death, with annual RMDs in years 1–9 if owner reached RBD.

Tax Planning Tip for the 10-Year Rule

Waiting until Year 10 to withdraw the entire balance can result in a massive single-year tax spike, pushing you into the top 37% federal tax bracket and triggering higher Medicare premiums. Modeling even annual distributions over the 10-year window helps smooth taxable income and keeps you in lower marginal brackets.

Frequently Asked Questions

Authoritative answers to common questions about this calculation

Q1.What is the 10-Year Rule for Inherited IRAs in 2026?

Under the SECURE Act and final IRS regulations, designated non-spouse beneficiaries (such as adult children) who inherit an IRA from an owner who died on or after January 1, 2020, must completely empty the inherited account by December 31 of the 10th year following the year of death.

Q2.Are annual RMDs required during years 1 through 9 under the 10-Year Rule?

Yes, if the original owner died ON or AFTER their Required Beginning Date (age 73). In that case, the beneficiary must take annual RMDs in years 1–9 using their Single Life Expectancy and withdraw 100% of the remaining balance by year 10. If the owner died BEFORE their RMD age, no annual withdrawals are required in years 1–9, but the account must still be emptied by year 10.

Q3.Who qualifies as an Eligible Designated Beneficiary (EDB)?

EDBs are exempt from the mandatory 10-year liquidation rule and can "stretch" distributions over their lifetime. EDBs include: (1) Surviving spouses, (2) Minor children of the deceased (until age 21), (3) Disabled or chronically ill individuals, and (4) Beneficiaries not more than 10 years younger than the deceased.

Q4.How are inherited Traditional IRA distributions taxed?

Distributions from an inherited Traditional, SEP, or SIMPLE IRA are taxed as ordinary income at the beneficiary’s tax rate in the year withdrawn. There is NO 10% early withdrawal penalty for inherited accounts, regardless of the beneficiary’s age.

Q5.Do inherited Roth IRAs have annual RMDs?

No. Inherited Roth IRAs are exempt from annual RMDs during years 1–9, regardless of the original owner’s age. However, non-spouse beneficiaries must still empty the entire Roth IRA by the end of the 10th year. All qualified withdrawals are 100% tax-free.

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