Who qualifies

Path 1, Eligible designated beneficiary (EDB). Five categories, and only these:

  1. The surviving spouse of the original owner
  2. A minor child of the owner, not a grandchild, not a minor relative. (The age of majority for this purpose is 21. When the child reaches 21, EDB status ends and the 10-year clock starts.)
  3. A disabled individual (as defined by the tax code)
  4. A chronically ill individual (as defined by the tax code)
  5. Any individual not more than 10 years younger than the original owner (a sibling close in age, for example)

Path 2, Death before January 1, 2020. Beneficiaries of owners who died before the SECURE Act took effect generally continue under the old stretch rules, regardless of category.

Everyone else falls under the 10-year rule.

How the stretch works

  • Take an annual RMD based on your life expectancy from the IRS Single Life Table (Table I, Publication 590-B).
  • Find your factor in the first distribution year, then subtract 1 from the factor each subsequent year (the "term-certain" method). The factor does not reset to your new age each year.
  • There is no 10-year deadline, distributions continue on this schedule for life.
Example. A 50-year-old disabled child inherits a $300,000 traditional IRA. Single Life Table factor at 50 is 36.2 → year-1 RMD ≈ $8,287. Year 2 uses 35.2, year 3 uses 34.2, and so on. Contrast this with the 10-year rule, which would force the entire $300,000 out within a decade, the stretch keeps far more growing tax-deferred, and keeps annual taxable income far lower.

Details that trip people up

  • The minor-child trap. A 12-year-old child of the owner is an EDB and stretches, until 21. Then the 10-year rule begins, with the account emptied by age 31. Plan for the handoff; don't assume the stretch lasts forever.
  • Documentation matters. Disabled and chronically ill status have specific tax-code definitions. If the IRS ever questions the stretch, you'll want the determination documented, this is CPA territory.
  • The "not more than 10 years younger" test compares birth dates, not just years. Someone 10 years and 2 months younger doesn't qualify.
  • Trusts as beneficiaries add a layer: only certain "see-through" trusts preserve EDB treatment for the underlying individual. If a trust is involved, get professional advice before taking any distribution.
Calculate my stretch RMDs
Disclaimer. Educational purposes only, not tax, legal, or financial advice. EDB definitions are fact-specific; verify with a qualified tax professional. IRS Publication 590-B is the authoritative source.