Inherited IRA SECURE Act 2.0 RMD Calculator 2027
SECURE Act 2.0 (signed 2022, fully effective 2025) requires most non-spouse beneficiaries to empty inherited IRAs within 10 years — and take RMDs each year if decedent had reached RBD. This tool models withdrawal strategies and tax impact.
SECURE Act 2.0 10-Year Rule
Effective 2020 for new inheritances (clarified by SECURE 2.0 in 2022). Non-spouse beneficiaries who aren't 'eligible designated beneficiaries' (spouse, minor child, disabled, chronically ill, < 10 years younger) must withdraw entire inherited IRA within 10 years of decedent's death. Annual RMDs required if decedent had reached Required Beginning Date.
Annual RMD Requirement
IRS clarified 2024: if decedent was taking RMDs at death, beneficiary must take RMDs years 1-9 AND empty by year 10. Skipping year-1 RMD = 25% penalty (reduced to 10% if corrected within 2 years). Calculate RMD using single life expectancy table at decedent's age in year of death, reducing by 1 each year.
Tax-Optimal Strategies
Three approaches: (1) Equal annual withdrawals smooth tax brackets, prevent year-10 bracket jump. (2) Front-load if you expect higher future taxes (or are currently in lower bracket). (3) Back-load if you expect lower future taxes (retirement) — risks lump-sum bracket creep. Always compare 3 scenarios with current + projected brackets.
Source: IRS Pub 590-B, SECURE Act 2.0 (P.L. 117-328), IRS Notice 2024-35. Last updated: May 2026.