Inherited Roth IRA Calculator 2026 β SECURE Act 10-Year Rule
Calculate your inherited Roth IRA distribution strategy under the SECURE Act. Covers the 10-year rule for non-spouse beneficiaries, life expectancy for EDBs, and tax-free distribution amounts.
$
Account value at date of death Year of first Roth contribution or conversion
10-Year Rule
Distribution Requirement
Tax-Free
Distribution Tax Status
N/A
Must Empty By
$0
Even Annual Distribution
Distribution Analysis
How Inherited Roth IRA Rules Work
The SECURE Act fundamentally changed inherited IRA rules for most beneficiaries. The key distinction is whether you are an Eligible Designated Beneficiary (EDB) β if so, you can stretch distributions over your lifetime. All other beneficiaries must empty the account within 10 years.
The 5-Year Rule for Tax-Free Status
5-Year Clock Starts: January 1 of the year the owner first contributed or converted to Roth
Tax-Free Test: Distribution Year β₯ (Year of First Roth Contribution + 5)
If 5-Year Rule Met: ALL distributions are tax-free
If NOT Met: Contributions (basis) are tax-free; earnings may be taxable
Age Requirement: Beneficiaries do NOT need to be 59Β½ β only the original rule matters
Tax-Free Test: Distribution Year β₯ (Year of First Roth Contribution + 5)
If 5-Year Rule Met: ALL distributions are tax-free
If NOT Met: Contributions (basis) are tax-free; earnings may be taxable
Age Requirement: Beneficiaries do NOT need to be 59Β½ β only the original rule matters
Example
Non-EDB inherits $250,000 Roth IRA, owner died in 2025, Roth first funded in 2018:
Rule: 10-Year Rule applies (must empty by Dec 31, 2035)
5-Year test: 2018 + 5 = 2023 β funded before 2023, so all distributions in 2026+ are tax-free
No annual minimums required β can take $0 in years 1β9 and $250,000+ in year 10
Or spread evenly: ~$25,000/year for 10 years, all tax-free
Rule: 10-Year Rule applies (must empty by Dec 31, 2035)
5-Year test: 2018 + 5 = 2023 β funded before 2023, so all distributions in 2026+ are tax-free
No annual minimums required β can take $0 in years 1β9 and $250,000+ in year 10
Or spread evenly: ~$25,000/year for 10 years, all tax-free
Extended
Stretch IRA vs 10-Year Rule Comparison
Compare distribution strategies for EDBs: stretch IRA vs accelerated 10-year drawdown
For Eligible Designated Beneficiaries, compare the stretch IRA (life expectancy) vs the 10-year rule approach. For non-EDBs, see distribution scenarios.
10-Year Drawdown Schedule (Even Distribution)
| Year | Year # | Distribution | Remaining Balance (7% growth) |
|---|
Frequently Asked Questions
What is the SECURE Act 10-year rule for inherited Roth IRAs?
Under the SECURE Act (2019) and SECURE 2.0, most non-spouse beneficiaries who inherit a Roth IRA must withdraw all assets by December 31 of the 10th year following the year of the owner's death. There are no required annual distributions during years 1β9 β you can take any amount or nothing, as long as the account is fully emptied by year 10. All distributions are tax-free if the Roth was funded at least 5 years ago.
Who is an Eligible Designated Beneficiary (EDB) and what is their advantage?
EDBs can use the "stretch IRA" β taking distributions over their life expectancy rather than a 10-year window. EDBs include: (1) Surviving spouse, (2) Minor child of the account owner (until age of majority), (3) Disabled individuals, (4) Chronically ill individuals, (5) Beneficiaries no more than 10 years younger than the deceased. EDBs use IRS Single Life Expectancy tables from Publication 590-B.
Are inherited Roth IRA distributions tax-free?
Yes, distributions from an inherited Roth IRA are completely tax-free as long as the original Roth IRA was established at least 5 years before the year of distribution. The 5-year clock runs from January 1 of the year the deceased owner made their first Roth contribution or conversion. If the 5-year rule is not met, only the contribution amount (basis) is tax-free; earnings may be taxable.
Can a surviving spouse treat an inherited Roth IRA as their own?
Yes. A surviving spouse has a unique option: they can roll the inherited Roth IRA into their own Roth IRA (or treat it as their own). This means the RMD rules for the deceased spouse's account are now based on the surviving spouse's own age, and the account continues growing tax-free. The spouse can also delay distributions until they would normally be required for their own account.
What happens if you miss the 10-year rule deadline?
Failing to withdraw the full inherited Roth IRA balance by the 10-year deadline results in a 25% excise tax on the amount that should have been withdrawn (reduced to 10% if corrected within 2 years). This excise tax applies to the missed distribution amount, not the remaining balance. The IRS may waive this penalty in certain circumstances if the failure was due to reasonable error.