Inherited IRA RMD Calculator

Inherited IRA distribution rules in plain English

Inherited IRA planning becomes complicated as soon as a beneficiary moves beyond the headline that an account must be emptied in 10 years. The practical questions are whether annual required minimum distributions may apply before the deadline, how traditional and Roth inherited IRA withdrawals differ for tax planning, and how the timing of distributions changes both the invested balance and the cash a beneficiary keeps. This calculator turns those choices into a readable year-by-year inherited IRA schedule.

Under the SECURE Act, many non-spouse beneficiaries cannot use a lifetime stretch schedule and instead must generally distribute the inherited account by December 31 of the tenth year after the year of death. Important exceptions and special treatment can apply to surviving spouses, certain disabled or chronically ill beneficiaries, minor children of the original owner, and beneficiaries who are not more than 10 years younger than the owner. For beneficiaries subject to the 10-year rule, the timing can also depend on whether the original owner died before or on/after the required beginning date for lifetime RMDs.

This page therefore provides an inherited IRA planning estimate rather than a legal determination. Enter the balance, account type, year of death, beneficiary type, decedent RBD status, assumed return, tax rate, and distribution strategy. The model then projects withdrawals, estimated traditional-IRA tax, after-tax cash flow, and year-end balances over the 10-year period. It is designed to make the contrast between steady withdrawals and a heavily deferred year-10 payout easier to see.

For an actual inherited IRA, compare several plausible assumptions instead of treating one output as a final answer. Run an even schedule beside maximum deferral, or compare a front-loaded pattern with a back-loaded pattern. Large differences between those projections show where tax timing, assumed investment growth, and the final distribution deadline matter most.

How to use this inherited IRA distribution calculator

Start the inherited IRA projection with the account balance and account type, then enter the original owner’s year of death. The calculator is intended for 2020-and-later scenarios using the SECURE Act framework. Choose the beneficiary category and the decedent’s required-beginning-date status from records when available. For a non-eligible designated beneficiary, the model uses a traditional IRA owner’s on/after-RBD status to decide whether to display simplified annual RMD floors during years 1 through 9.

1. Enter the current inherited IRA balance.
2. Choose Traditional IRA or Roth IRA.
3. Enter the year of death, beneficiary type, and decedent RBD status.
4. Provide the beneficiary’s age for the simplified life-expectancy calculation when applicable.
5. Set an assumed annual return and marginal tax rate.
6. Select a withdrawal strategy and click Calculate Distributions.

The inherited IRA strategy menu illustrates different timing choices. Even annual distributions models level annual withdrawals across the 10-year window. Maximum deferral leaves assets invested until late in the period except for any modeled RMD floor, which can increase year-10 concentration. Front-load and Back-load intentionally create uneven schedules. Minimum required takes the simplified RMD amount in years 1 through 9 when that rule is flagged, then distributes the remaining balance in year 10.

Once the inherited IRA results appear, look beyond the totals. The annual table shows whether distributions cluster near the deadline, whether the assumed return allows the balance to keep growing after withdrawals, and whether a traditional IRA plan places a large estimated tax amount in a particular year. Those are useful discussion points for a CPA, estate attorney, financial planner, or custodian.

How the inherited IRA model estimates withdrawals

This inherited IRA model uses an inspectable annual sequence. It selects a withdrawal from the chosen timing strategy and, when its simplified annual-RMD rule applies, raises that withdrawal to at least the modeled minimum. The balance remaining after the withdrawal earns the annual return you entered. The output is consequently a constant-return planning projection, not a daily market calculation or a custodian tax statement.

The inherited IRA balance relationship reduces the prior balance by the year’s distribution before applying growth:

• B_t is the projected ending balance for year t.
• W_t is the inherited IRA withdrawal during year t.
• r is the assumed annual return expressed as a decimal.

When the simplified inherited IRA rule flags annual RMDs, the model divides the prior year-end balance by an applicable life-expectancy denominator. It begins with the beneficiary’s Single Life Expectancy factor in the first distribution year and reduces that denominator by one in each following year.

Here L₁ is the beneficiary’s Single Life Expectancy factor for the first distribution year, and t is the distribution-year number. For a traditional inherited IRA, the calculator estimates tax by multiplying each withdrawal by the entered marginal tax rate. For a Roth inherited IRA, it displays zero estimated tax so the schedule can focus on withdrawal timing and depletion; it does not determine whether every Roth distribution is qualified. The RMD calculation is a simplified planning treatment, so custodian records and professional guidance remain important.

A single constant return and flat tax rate cannot reproduce real markets or a complete tax return. Their purpose is to make first-pass inherited IRA decisions comparable: for example, whether postponing distributions materially increases the year-10 amount, or whether a smoother pattern reduces annual taxable income concentration.

Worked example: comparing inherited IRA withdrawal timing

A realistic inherited IRA comparison begins by entering the facts available from the account and custodian records, then testing how withdrawal timing changes the projection. The calculator’s most informative output is not a generic total: it is the annual pattern of withdrawals, RMD floors when flagged, estimated tax, after-tax cash, and remaining balance through the year-10 deadline.

An even annual schedule can provide a more predictable stream of projected cash flow. By contrast, maximum deferral retains more of the inherited account for later years, subject to any modeled annual minimums. For a traditional IRA, that choice can also concentrate estimated taxable income in the final distribution year. Front-loading may reduce the balance exposed to future growth, while back-loading increases reliance on later investment performance and leaves less room to adjust before the deadline.

No strategy is automatically best for every beneficiary. A later withdrawal pattern may be worth considering when future taxable income is expected to be lower, while a level schedule can be useful when steady after-tax cash flow matters more. Use the inherited IRA schedule to identify the tradeoff, then confirm the actual distribution requirements and tax consequences with an appropriate professional.

Inherited IRA withdrawal strategies compared at a glance

These five inherited IRA strategies all model a complete distribution by year 10, but their timing, tax concentration, and exposure to assumed investment growth differ. Select one in the calculator, then use its annual schedule and all-strategy comparison to evaluate the tradeoffs.

How to read inherited IRA results and compare strategies

Start an inherited IRA result review with the annual schedule. Start Balance is the amount available at the beginning of a year. Required RMD appears when the model’s simplified annual-minimum rule applies. Withdrawal is the strategy’s actual distribution and will not be lower than the modeled minimum. The remaining columns show estimated tax, after-tax cash, and projected end balance.

Compare a smoother inherited IRA strategy with a more concentrated one. If the deferred plan creates a substantially larger year-10 distribution, consider whether that concentration is acceptable for projected taxable income and cash flow. If the level plan sacrifices assumed growth but produces steadier after-tax amounts, assess whether that better matches the beneficiary’s needs. The calculator does not model filing status, state tax, Medicare-related thresholds, charitable planning, or other income, but the annual schedule helps identify where those questions may matter.

Must an inherited IRA distribute money every year? The actual answer depends on beneficiary status and, in some cases, whether the owner died before or on/after the required beginning date. This tool uses a simplified planning flag. When annual RMDs are shown, treat them as a prompt to verify the account’s requirement rather than as a formal determination.

Why can the estimated inherited IRA tax differ from an actual tax bill? The model applies one marginal rate to each traditional IRA withdrawal. Actual tax can vary with brackets, deductions, credits, filing status, state rules, Social Security, and other income. Re-run the same schedule using several tax-rate assumptions to see how sensitive the comparison is.

How does the model treat a Roth inherited IRA? It sets estimated tax to zero and concentrates on the distribution deadline, withdrawal timing, and assumed balance growth. That is not a determination that a particular Roth distribution is qualified or tax-free.

What does a very aggressive or gentle output mean? It usually reflects the return and timing assumptions. A higher assumed return gives delayed withdrawals more opportunity to grow, while a low or negative return makes delay less attractive. Use the differences between strategies to identify which assumptions deserve closer review.

Inherited IRA assumptions and limitations worth knowing

This inherited IRA calculator is deliberately simplified so the distribution mechanics remain visible. It is useful for education, rough comparisons, and preparing questions for an advisor, but it should not be used as a custodian instruction or filing calculation.

• Educational model only: projected results may differ from custodian or tax-preparer calculations.
• Constant annual return: the model does not simulate volatility, fees, contributions, or intra-year timing.
• Flat tax rate: it does not calculate progressive brackets, deductions, credits, or state-specific tax rules.
• Simplified annual-RMD flag: the model uses the selected account type, beneficiary type, and decedent RBD status; actual inherited IRA requirements can require additional facts and guidance.
• Limited special-case coverage: trusts, estates, multiple beneficiaries, successor beneficiaries, pre-2020 deaths, and elections can follow different rules.
• Roth treatment: zero estimated Roth tax is a timing-model assumption, not a qualification analysis.

If the inherited IRA involves a trust, multiple inheritors, disability or chronic illness status, or uncertainty about the original owner’s RBD status, use this schedule as a starting point and verify the applicable rules with a qualified advisor or custodian. The calculator is most valuable when it turns a broad question into a focused one: how much does year-10 exposure change if distributions are smoothed rather than deferred?

Inherited IRA questions beneficiaries ask most