Understanding the 10-Year RMD Rule for Inherited IRAs

The SECURE Act introduced significant changes to how inherited retirement accounts—such as IRAs and 401(k)s—must be distributed. These new rules affect many beneficiaries and can have meaningful implications for taxes, cash flow, and long-term planning.

This article provides a high-level overview of the 10-year rule and explains how distribution requirements vary depending on the type of beneficiary.

Key Changes Under the SECURE Act

The SECURE Act of 2019 changed the distribution rules for retirement accounts inherited from individuals who passed away after December 31, 2019. The rules a beneficiary must follow depend on how they are classified under the law.

Beneficiaries generally fall into one of two categories:

Eligible Designated Beneficiaries (EDBs)
Designated Beneficiaries (DBs)

Understanding which category applies is the first step in determining distribution options.