Ask an Advisor: I Inherited an IRA from My Parents. When Do I Need to Start Taking RMDs From It?

If you’ve inherited an IRA from one of your parents, you may or may not have required minimum distributions (RMDs). Whether you do largely depends on when your parent passed away.

But RMDs aren’t the only distribution rule that you need to understand. You also need to be aware of how long you have to deplete the account. Let’s take a look at the rules.

If you need help managing an inheritance or navigating the rules surrounding inherited retirement accounts, speak with a financial advisor.

Types of Beneficiaries

First, you need to understand that there are different categories of beneficiaries. This matters because different rules apply depending on which category you fall into. There are two types:

Eligible designated beneficiaries: These are the surviving spouse or minor child of the deceased account owner, someone who is disabled or chronically ill, or someone who is no more than 10 years younger than the deceased account owner.
Designated beneficiaries: Named beneficiaries who are not otherwise eligible designated beneficiaries.

If you’re an adult child of the original account owner, you are most likely a designated beneficiary rather than an eligible designated beneficiary. However, a minor child who inherits an IRA from a parent is considered an eligible designated beneficiary. If that’s you, then special rules also apply.

(The rules surrounding inherited IRAs can be confusing, which is why it may help to work with a fiduciary financial advisor. Connect with an advisor for free.)

The 10-Year Rule

The 10-year rule requires you to completely distribute the inherited IRA by the end of the 10th year following the year your parent died. This rule applies to everyone except eligible designated beneficiaries.

For example, suppose your mother died in 2026 and you inherited her IRA. The 10-year period begins Jan. 1, 2027, and you must deplete the account by Dec. 31, 2036.

However, this doesn’t tell you how much, if any, you must withdraw each year. It also doesn’t prevent you from withdrawing the money more quickly. It simply establishes the deadline by which you must empty the account.

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RMD Rules for Inherited IRAs

Whether or not you also have to take RMDs from an inherited IRA depends on when your parent died.

Under the current rules, an adult child who is subject to the 10-year rule must determine whether their parent died before or after their required beginning date (RBD). The RBD is the date by which the original IRA owner had to start taking their RMDs.

To see whether your parent had reached their RBD, start with their birth date. For a traditional IRA, the RBD was April 1 of the year after they turned 70 ½ if they were born before July 1, 1949; age 72 if born from July 1, 1949, through 1950; or age 73 if born from 1951 through 1959. Compare that April 1 date with the date they died. If they died before it, they died before their RBD, even if they had already reached the applicable age.

Death Occurred Before Required Beginning Date

If your parent died before their required beginning date, you generally don’t have to take annual RMDs during years one through nine. You simply have to make sure to distribute the entire balance by the end of year 10.

For example, if your mother died in 2026 before reaching her required beginning date and left you a $500,000 traditional IRA, you don’t have to take annual RMDs (assuming you are an adult child subject to the 10-year rule).

That doesn’t necessarily mean you should wait until the final year to withdraw everything, though. Taking a large, lump sum distribution can result in a significant tax bill. Depending on your situation, spreading withdrawals across several years could be more tax efficient.

Death Occurred After Required Beginning Date

If your parent died on or after their required beginning date, you generally must take annual RMDs beginning in the year after your parent’s death. In other words, if your parent had RMDs, then you do too. You are also still subject to the 10-year rule.

Suppose your mother died in 2026 after reaching her required beginning date and you inherited her traditional IRA. You would need to take an RMD from the inherited IRA in 2027 and continue taking annual RMDs during the 10-year period. You would have to withdraw any remaining balance by Dec. 31, 2036.

If your parent hadn’t withdrawn the full amount of any RMDs owed in the year of death, you still need to distribute the remaining amount.

You generally calculate RMDs using the IRS Single Life Expectancy Table. The calculation is based on the inherited IRA’s prior year-end balance and the applicable life-expectancy factor. The annual RMD is a minimum, however. You can always withdraw more.

(And if you need help calculating RMDs from an inherited IRA, connect with a financial advisor who can help you manage your inheritance.)

Bottom Line

If you inherit an IRA from a parent as an adult child, you’ll generally be subject to the 10-year rule, which requires you to empty the inherited IRA by the end of the 10th year following the year of death.

Whether you also need to take annual RMDs during those 10 years depends on whether your parent had reached their required beginning date before they died. If they died before that date, you generally don’t have annual RMDs during the 10-year period. If they died on or after that date, you generally do.

However, the amount you’re required to withdraw isn’t necessarily the amount you should withdraw. Because distributions from a traditional IRA are taxable, deciding when to take them can be an important tax-planning decision. You may want to examine your income, tax bracket and expected income over the entire 10-year period to develop a complete withdrawal strategy rather than simply waiting until the deadline.

Tips for Managing an Inheritance

Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Understand the tax treatment of each asset you receive. Inherited property generally has a basis tied to its value at death, which matters if you sell it. Inherited retirement accounts have separate withdrawal rules, and taxable distributions may add to your income.

Brandon Renfro, CFP®, is a SmartAsset financial planning columnist and answers reader questions on personal finance and tax topics. Got a question you’d like answered? Email AskAnAdvisor@smartasset.com and your question may be answered in a future column.

Please note that Brandon is not an employee of SmartAsset and is not a participant in SmartAsset AMP. He has been compensated for this article. Some reader-submitted questions are edited for clarity or brevity.