The rule in plain language
The SECURE Act ended the lifetime stretch for most non-spouse beneficiaries of IRAs inherited after 2019 and replaced it with the 10-year rule: the entire account must be distributed by the end of the 10th year following the owner's death. For traditional IRAs, the IRS final regulations added a twist: if the owner had already started RMDs, the beneficiary must also take annual RMDs in years 1 through 9.
Roth IRAs skip that twist. Roth owners have no lifetime RMDs, so there is no "at least as rapidly" schedule for a beneficiary to continue. The result, confirmed across IRS guidance and practitioner analysis: no annual RMDs in years 1 through 9, full distribution by end of year 10. You can take it all in year 1, wait until year 10, skip years, or take some each year. The only hard requirement is the year-10 deadline.
Worked example: the 10-year clock
The following is a hypothetical illustration showing the timeline, not tax advice.
- Deadline: December 31, 2036 (the end of the 10th year after 2026).
- Years 1 through 9 (2027-2035): no required distributions. You may take $0 every year.
- By December 31, 2036: the full balance, whatever it has grown to, must be out.
- Tax: distributions are tax-free if the account satisfied the five-year holding period (the owner's holding period counts for you). You still report them, but qualified Roth distributions are not taxable income.
Who gets different treatment
- Surviving spouses. A spouse can roll the inherited Roth IRA into their own Roth IRA. It becomes theirs: no lifetime RMDs, no 10-year clock, and their own beneficiaries get a fresh 10-year rule later. This is usually the best option. See spousal beneficiary options.
- Eligible designated beneficiaries. Minor children (until age 21, then the 10-year clock starts), disabled or chronically ill individuals, and beneficiaries not more than 10 years younger than the deceased may use the life-expectancy stretch instead of the 10-year rule. See the life-expectancy stretch guide.
- Successor beneficiaries. If you inherit an already-inherited Roth IRA, the 10-year clock does not reset. See the successor beneficiary RMD calculator.
- Designated Roth 401(k)/403(b) beneficiaries. SECURE 2.0 eliminated pre-death RMDs from these accounts while the owner is alive, but beneficiaries are still subject to the RMD rules, including the 10-year rule.
Sources
- Kiplinger, Ask the Editor: Tax Questions on Inherited IRAs (inherited Roth IRA 10-year rule, no annual RMDs)
- Morningstar, FAQs About Inherited IRAs (Roth beneficiaries: no years 1-9 RMDs under the 10-year rule)
- IRS Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs)
- IRS RMD FAQs: beneficiaries of Roth IRAs and designated Roth accounts are subject to RMD rules
Frequently asked questions
Do inherited Roth IRAs have RMDs?
The owner had none, but beneficiaries have the 10-year rule: empty the account by the end of year 10, with no annual RMDs required in years 1 through 9.
Can I wait until year 10 to take money from an inherited Roth IRA?
Yes. Most non-spouse beneficiaries can take $0 in years 1 through 9 and withdraw everything by December 31 of year 10.
Are inherited Roth IRA distributions taxable?
Qualified distributions are tax-free, generally once the five-year holding period is satisfied. Earnings taken before that may be taxable, but no early-withdrawal penalty applies to beneficiaries.
What are a surviving spouse's options with an inherited Roth IRA?
Roll it into your own Roth IRA (no lifetime RMDs, no 10-year clock) or remain as beneficiary. The rollover is usually simplest.
Who is exempt from the 10-year rule on an inherited Roth IRA?
Eligible designated beneficiaries: surviving spouses, minor children, disabled or chronically ill individuals, and beneficiaries not more than 10 years younger than the deceased.
Do designated Roth 401(k) beneficiaries follow the same rules?
Yes. No pre-death RMDs for the owner since 2024, but beneficiaries still face the RMD rules including the 10-year rule.
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