Inherited IRA Calculator
Plan withdrawals from an inherited IRA under the 10-year rule, with the level annual amount that empties it by the deadline.
Want to understand the concept, not just the number? Read The Social Security and Early Withdrawals Guide .
How it's calculated
The rules for inherited IRAs changed with the SECURE Act. Most non-spouse beneficiaries, like adult children, can no longer stretch withdrawals over their lifetime. Instead they must empty the account within 10 years. How you spread those withdrawals has a big tax impact, since every dollar from a traditional inherited IRA is taxable income in the year you take it.
The worst approach is often to wait and take it all in year 10, which can pile a huge amount of income into one year and push you into a top bracket. Spreading it evenly usually keeps more of it in lower brackets. This calculator finds the level annual withdrawal that empties the growing balance over the 10 years. Take the default. A 500,000 dollar inherited balance growing at 6 percent supports a level withdrawal of about 67,934 dollars a year, which fully depletes it by year 10 and totals about 679,000 dollars including growth. A naive even split ignoring growth would be 50,000 a year.
The right pace depends on your other income. In years when your income is low, taking more can fill up low brackets. In high-income years, taking less avoids the top rates. Coordinating inherited IRA withdrawals with your overall tax picture across the 10 years is where the real savings are. Use this as a baseline, then adjust for the years when your income is unusually high or low.
Assumptions
- Most non-spouse beneficiaries must empty an inherited IRA within 10 years. This finds the level annual withdrawal that depletes the growing balance over that window.
- Spreading withdrawals evenly avoids a large taxable spike in year 10. This does not model annual required minimums that may apply if the original owner had started distributions.
Last updated: 2026-08-08
These assumptions follow our general methodology.
Frequently asked questions
What is the 10-year rule for inherited IRAs?
Under the SECURE Act, most non-spouse beneficiaries must withdraw the entire inherited IRA within 10 years of the original owner death. There is no longer a lifetime stretch for these beneficiaries, though spouses and certain others have different options.
Should I wait until year 10 to withdraw?
Usually not. Taking it all in one year can spike your income into a top bracket. Spreading withdrawals across the 10 years generally keeps more of the money in lower brackets and results in less total tax, which is what this calculator plans for.
Do I owe tax on an inherited IRA?
From a traditional inherited IRA, yes. Every withdrawal is taxable as ordinary income in the year you take it. A Roth inherited IRA is generally tax-free. The 10-year rule still applies to both, but the tax impact is far larger for a traditional account.
Are there annual required minimums during the 10 years?
It depends. If the original owner had already started required distributions, annual minimums may apply in years one through nine, with the rest by year 10. If not, you can withdraw in any pattern as long as the account is empty by the deadline.