Plan inherited IRA withdrawals under the SECURE Act
This calculator builds a simple, year-by-year distribution schedule for an inherited IRA based on the beneficiary category you select. It is designed for planning conversations—how quickly the account might be distributed, what annual withdrawals could look like, and how a growth assumption changes the projected ending balance.
What this calculator does (and what it does not)
The SECURE Act changed how many beneficiaries must withdraw inherited retirement accounts. In many common situations (for example, an adult child inheriting a parent’s IRA), the account generally must be emptied by the end of the 10th year after the year of death. Other situations may allow a life-expectancy style approach (often discussed as “stretch” distributions), and some non-person beneficiaries may fall under a 5-year rule or a remaining-life-expectancy approach depending on timing.
This page provides a projection using simplified mechanics. It does not attempt to reproduce every IRS nuance, custodial policy, or the latest interpretive guidance. If you need a compliance-grade RMD calculation, confirm the applicable rule and divisor with IRS publications and/or a qualified tax professional.
How the schedule is calculated
Each year in the schedule follows the same pattern:
- Start with the current projected balance (initially, your inherited IRA balance).
- Compute a withdrawal using either a life-expectancy style divisor or an even-withdrawal approach to meet the deadline.
- Apply growth to the remaining balance using your assumed annual return.
Withdrawal methods used by this tool
- Life expectancy (simplified): withdrawal = balance ÷ lifeFactor, where lifeFactor is approximated as max(1, 84 − age) and then reduced by 1 each year. This is a planning approximation and will not match the official IRS Single Life Table for every age.
- Even withdrawals to satisfy deadline: withdrawal = balance ÷ yearsRemaining. This produces a smooth schedule that aims to fully distribute the account by the end of the applicable window.
Deadline logic (simplified)
The calculator uses the beneficiary classification to set a distribution window:
- Non-eligible designated beneficiary: 10-year window.
- Minor child of the decedent: years until age 21, then an additional 10 years (simplified).
- Eligible designated beneficiary / spouse: life-expectancy style window based on the approximation above.
- Entity or charity: 5-year window if the decedent died before age 73; otherwise a remaining-life-expectancy style window based on the decedent’s age (simplified).
Worked example (quick check)
Suppose an adult child inherits an IRA with a $400,000 balance, the owner died in 2024, and the beneficiary selects Non-eligible designated beneficiary (10-year rule). If the first distribution year is 2025 and the assumed return is 5%, the calculator will create up to 10 annual lines. With the “even withdrawals” method, the first year’s withdrawal is roughly one-tenth of the current balance (because 10 years remain), and later withdrawals adjust as the balance changes.
If you switch to “life expectancy” while keeping the same beneficiary type, the tool will still use the deadline-based method because the 10-year category is not treated as life-expectancy eligible in this simplified model. That behavior is intentional and helps prevent accidentally applying a stretch-style schedule to a 10-year scenario.
How to interpret results
The results panel provides a narrative summary plus a year-by-year schedule. Use it to compare scenarios:
- Timing: what year the account is projected to be fully distributed by (based on the simplified rule logic).
- Cash flow: how withdrawals may vary year to year under each method.
- Growth sensitivity: how changing the assumed return affects projected ending balances and later withdrawals.
Important limitations
- Not tax advice: the tool does not estimate taxes, penalties, or bracket effects.
- Not an IRS table: life expectancy is approximated for planning convenience.
- One withdrawal per year: real distributions can be monthly/quarterly and may be timed differently.
- Guidance changes: inherited IRA rules have evolved; always confirm current requirements.
If you are coordinating with an advisor, consider bringing: the date-of-death value, the beneficiary designation, whether the decedent had reached their required beginning date, and your preferred distribution strategy. Those details can materially change the correct compliance approach.
Background: SECURE Act inherited IRA rules in plain language
The Setting Every Community Up for Retirement Enhancement (SECURE) Act changed inherited IRA distribution planning by limiting how long many beneficiaries can keep funds in a tax-advantaged account. Before 2020, many designated beneficiaries could take required minimum distributions (RMDs) over their own life expectancy, often called a “stretch” strategy. After the SECURE Act, most non-spouse beneficiaries must generally distribute the entire inherited account by December 31 of the 10th year following the year of death.
Some beneficiaries are treated differently. A surviving spouse often has the most flexibility (for example, rolling the account into their own IRA or using beneficiary rules). Certain eligible designated beneficiaries—such as a disabled or chronically ill beneficiary, a minor child of the decedent (until majority), or someone close in age to the decedent—may be able to use a life-expectancy style approach. Non-person beneficiaries (like an estate or charity) can fall under different timing rules depending on whether the original owner died before or after their required beginning date.
What the inputs mean on this page
- Inherited IRA Balance ($): the starting balance used for the projection.
- Beneficiary Age at Inheritance: used only for the simplified life-expectancy factor and minor-to-majority timing.
- Decedent Age at Death: used for the entity/charity branch in this simplified model.
- Year of Death: used to display the projected deadline year for 10-year and 5-year style windows.
- Assumed Annual Investment Return (%): applied after each year’s withdrawal to project the next year’s balance.
- First Distribution Year: the first year shown in the schedule output.
- Distribution Method: choose a life-expectancy style withdrawal (when allowed by the simplified logic) or even withdrawals to meet the deadline.
Introduction: Practical planning notes
Many beneficiaries use a schedule like this to think about tax timing. For example, a 10-year window may allow you to spread withdrawals to avoid unusually high taxable income in a single year. Conversely, if you expect income to rise later, you might prefer larger withdrawals earlier. This calculator does not model those tax tradeoffs, but it can help you estimate the size of withdrawals you may be considering.
How to use this calculator
- Enter Inherited IRA Balance ($) using the unit or time period shown by the field.
- Enter Beneficiary Age at Inheritance using the unit or time period shown by the field.
- Enter Decedent Age at Death using the unit or time period shown by the field.
- Run the calculation and compare the output with a second scenario before acting on it.
Formula: how the estimate is built
The result can be read as result = f(a, b, c), where those inputs represent Inherited IRA Balance ($), Beneficiary Age at Inheritance, Decedent Age at Death. Keep money, time, distance, percentage, and count fields in the units requested by the form.
Arcade Mini-Game: Icon showing legacy documents and timeline Inherited IRA SECURE Act Distribution Calculator Calibration Run
Use this quick arcade run to practice separating useful scenario inputs from common planning mistakes before you rely on the calculator output.
Start the game, then use your pointer or arrow keys to catch useful inputs and avoid bad assumptions.