Inherited IRA
An inherited IRA is a retirement account passed to a beneficiary after the owner's death, with most non-spouse beneficiaries required to deplete the account within 10 years under the SECURE Act.
Exam Tip
SECURE Act = 10-year rule for most beneficiaries. Spouse = most flexibility. 2025 = RMD enforcement begins.
What is an Inherited IRA?
A retirement account that passes to a beneficiary after the owner dies.
SECURE Act 10-Year Rule
Most non-spouse beneficiaries must fully distribute within 10 years.
Beneficiary Categories
| Type | Distribution Rule |
|---|---|
| Surviving Spouse | Most flexible |
| Minor Child | Stretch until 21, then 10-year |
| Disabled/Chronically Ill | Life expectancy |
| All Other Individuals | 10-year rule |
2025 Update
RMD enforcement begins - annual RMDs required if owner had started RMDs.
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Related Terms
IRA (Individual Retirement Account)
An IRA is a tax-advantaged personal retirement savings account that individuals can open independently, offering either tax-deductible contributions (Traditional) or tax-free withdrawals (Roth).
Roth IRA
A Roth IRA is a retirement account funded with after-tax dollars that grows tax-free and allows tax-free withdrawals in retirement, with no required minimum distributions.
RMD (Required Minimum Distribution)
RMDs are mandatory annual withdrawals from traditional retirement accounts (Traditional IRA, 401(k)) that must begin at age 73, calculated based on account balance and life expectancy.
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