Inherited IRA Managing RMDs for inherited IRAs

When inheriting an IRA, soon afterward, you may have a requirement to take money out annually, known as a required minimum distribution (RMD). We can help.1


Take your RMD

3 factors to understand


Your relationship matters

Your annual RMD varies if you're a spouse, a non-spouse, or a non-person entity, like a trust.


The original owner's age matters

The original owner's age when they passed away is one of the factors that determines when your RMDs begin.


RMDs are taxed

The money you're required to take out is taxed as income to you. If you don't take the money, you may face a 25% penalty.

Let's identify your RMD options

To understand your options, select the tab below that reflects your relationship to the original owner or your beneficiary type2:

Spousal beneficiary options3,4,5

If you inherited an IRA from your spouse, you can move the money into either:

  1. Your own IRA
  2. An inherited IRA in your own name

As a spouse, you generally have more RMD options than other types of beneficiaries.

If you move the assets Into your own IRA, you must begin taking RMDs in the year you reach the IRS-required starting age.
If you move the assets into an inherited IRA in your name, you typically have 3 options:

  • Delay taking RMDs until your late spouse would've turned RMD age.
  • Begin taking RMDs the calendar year that follows the year your spouse passed away.**
  • If your spouse passed away before they began taking RMDs, withdraw the balance of your inherited IRA by December 31 of the year that marks the 10th anniversary of their passing.

Note: If your spouse passed away on or after January 1, 2020, and they had begun taking RMDs before their passing, you have one additional RMD option:

  • Take an RMD from the account in year's 1-9 of a 10-year withdrawal period and withdraw the balance of the account by December 31 of the year that marks the 10-year anniversary of your spouse's passing.

We'll help you identify the options that apply to your specific situation below:

** If your spouse passed away after they began taking their own RMDs, you can calculate RMDs from your inherited IRA based on the longer of your life expectancy or your spouse's remaining life expectancy.

Non-spouse beneficiary options3,5,6,7

As a non-spouse inheriting an IRA, you generally have one initial option for the assets inheriting:

  • Move the inherited assets into an inherited IRA in your name

To apply the correct RMD rules, you'll need to know:

  • The original owner's age when they passed away
  • Whether you were the only beneficiary on their account

In general, your RMD options will differ depending on the date the original owner passed away:

If the original owner passed away on or after January 1, 2020 and, depending on whether they had begun taking RMDs, or not, before passing, you have two withdrawal options:

  • If your original owner passed away before they began taking RMDs, withdraw the balance by December 31 of the year that marks the 10th anniversary of their passing.
  • If your original owner passed away after they began taking RMDs, over a 10-year period, take an RMD from the account in year's 1-9, with the remaining balance to be taken by December 31 of the year that marks the 10th anniversary of their passing.

If the original owner passed away on or before December 31, 2019, your two RMD options are:

  • Withdraw the balance by December 31 of the year that marks the 5th anniversary of the original owner's passing.
  • Take RMDs beginning in the calendar year following the original owner's passing.**

We'll help you identify the options that apply to your specific situation below:

** If the original owner passed away after they began taking their own RMDs, you can calculate RMDs from your inherited IRA based on the longer of your life expectancy or your original owner's remaining life expectancy.

Eligible designated beneficiary3,5,6,8

If the original owner passed away on or after January 1, 2020, a non-spouse beneficiary qualifies as an EDB by falling into any of the following

3 categories:

  • Minor child of the original owner when they passed away
  • Chronically ill or disabled
  • Not more than 10 years younger than the original owner

As an EDB, you have one option for the inherited assets:

  • Move the inherited assets into an inherited IRA in your name

In general, the IRS then gives you the following RMD options:

  • If your original owner passed away after they began taking RMDs, begin taking RMDs in the calendar year that follows their passing.
  • Withdraw the balance by December 31st of the year that marks the 10th anniversary of their passing, if they had not begun taking RMDs before the died.2
  • For a minor child of the original owner, begin taking RMDs based on your life expectancy up to age 30, with the remaining balance needing to be taken by December 31 of the year you turn age 31.

We'll help you identify the options that apply to your specific situation below:

Estate, entity, or trust3,5,9,10,11,12

When an IRA is left to a trust or estate entity, the IRS gives you only one initial option for the assets:

  • Move the inherited assets into an inherited IRA in the name of the estate, entity or trust

When it comes to RMDs, however, you may have different options depending on:

  • Trust type: Some examples include see-through and non-see-through trusts, as well as spousal or marital trusts.
  • Number of beneficiaries: Is there a single beneficiary of the trust or multiple beneficiaries?
  • Beneficiary type: For example, is the trust beneficiary a spouse, non-spouse, or EDB?
  • Date of death: Did the original owner pass away in 2019 or earlier or did it occur in 2020 or later?

In general, depending on your situation, you may have the options to:

  • Withdraw the balance by December 31 of the year that marks the 5-year anniversary of the original owner's death.
  • Take RMDs based on the age of the original owner.

To help determine an RMD schedule that may apply to your situation, try the following tools. With trusts, it's best to consult with a tax advisor or attorney to verify available options.

Actions to consider


View the calculated RMD amount for a Fidelity inherited IRA*

For inherited IRAs at Fidelity, we've done the math for you in our Retirement Distribution Center.


View calculationLog In Required


See options for taking RMDs for your unique inheritance situation*

Answer a few quick questions and the Beneficiary Distribution Options Tool will hone in your RMD options.


Explore now


Estimate your RMD amount for a non-Fidelity inherited IRA*

For an inherited IRA you don't keep at Fidelity, assess your outside RMDs using our RMD Calculator.


Estimate now

Frequently asked questions

  • What's a required minimum distribution (RMD)?
    At age 73, the original IRA owner must take an IRS-required amount from the account every year, called an RMD. When you inherit the account, you may also inherit the deceased's RMD responsibility.
  • I'm a non-spouse beneficiary. Under the finalized SECURE regulations, are missed RMD penalties from the IRS now applicable?

    Yes. For non-spouse beneficiaries required to follow a 10-year life expectancy withdrawal schedule, meaning you inherited from someone who passed away in 2020 or later, and that person had begun taking RMDs, in order to avoid an IRS missed RMD penalty of up to 25%, withdrawals must begin no later than December 31, 2025. You must continue taking RMDs for the remaining years in the 10-year withdrawal period and withdraw the full balance of your account by the end of the year containing the 10-year anniversary of the original depositors passing.

  • Is my 10-year withdrawal period extended because the IRS waived missed RMD penalties in 2021 through 2024?

    No. For those subject to a 10-year life expectancy withdrawal schedule, the clock started when your original depositor passed away.

    For example, if you inherited your account from someone that passed away in 2022, and they had begun taking their own RMDs before they passed away, your 10-year withdrawal period ends on December 31, 2032, which is the end of the year containing the 10-year anniversary of their passing. 2023 and 2024 are still included in your 10-year withdrawal period, even if you didn't take an RMD because the IRS waived missed RMD penalties during those years. To avoid IRS missed RMD penalties, you must begin taking RMDs from your account each year from 2025 through 2031 and withdraw the full balance of your account by the end of 2032.

  • What should I do if I inherited an IRA that was held at another financial services provider?

    If you've inherited an IRA that was held at another financial services provider, you'll need to complete the inheritance process with that provider. Once you've taken ownership of the assets, you could then transfer the assets to Fidelity if you wish.

  • What should I do if I have inherited a 401(k) or other workplace plan?

    This transfer process depends on the type of plan you're inheriting. Our associates are ready to help guide you along the way. Begin by giving us a call at 800-343-3548. Learn more about what happens if you inherit a 401(k).

  • Do I need to pay taxes when I inherit an IRA?

    Receiving inherited assets generally has no immediate income tax impact; however, required minimum distributions (RMDs) are taxed as ordinary income for the inheritor in the year they are withdrawn.

    For inherited Roth IRAs, the inherited assets generally have no immediate income tax impact and the withdrawals are tax-free as long as the original owner met the 5-year aging requirement.

Glossary of terms

  • Pre-required beginning date (Pre-RBD)

    When an original depositor passes away before April 1st of the year they were required to begin taking RMDs, they passed away "Pre-RBD".

  • Post-required beginning date (Post-RBD)

    When an original depositor passes away on or after April 1st of the year they were required to begin taking RMDs, they passed away "Post-RBD".

  • Timely

    Taking receipt of IRA assets, or having ownership within the original depositor's account assigned to you within the year containing the one year anniversary of the original depositor's death.

  • Eligible Designated Beneficiary (EDB)

    EDBs are a type of beneficiary that can only apply in situations where the original depositor passed away on or after January 1, 2020. They are the spouse, the minor child of the original depositor, a disabled or chronically ill person or an individual that is not more than 10 years younger than the original depositor.

  • Spouse Beneficiary

    Someone who is legally married to the original depositor when they passed away.

  • See-through or Look-through trust

    A type of legal trust arrangement that enables the trustee to use the oldest trust beneficiary's date of birth for purposes of calculating RMDs.

    Requirements for a trust to be a see-through or look-through trust are:

    • The trust must be valid under state law.​
    • The trust must be irrevocable or become irrevocable upon the death of the account holder.
    • All of the trust's underlying beneficiaries must be identifiable as being eligible to be designated beneficiaries themselves.
    • A copy of the trust must be provided to the custodian by October 31 the following year after the account holder's death.
  • Conduit trust

    A type of see-through or look-through trust that requires the trustee to immediately transfer distributions from the inherited IRA to the trust beneficiaries.

  • Accumulation trust

    A type of see-through or look-through trust that requires the trustee to immediately transfer distributions from the inherited IRA to the trust beneficiaries.

  • Applicable Multi-beneficiary trust

    A trust: (1) which has more than one beneficiary; (2) all of the beneficiaries are treated as designated beneficiaries for purposes of determining the distribution period pursuant to section 401(a)(9); and (3) at least one of the beneficiaries is an eligible designated beneficiary who is either disabled or chronically ill.

  • Estate Beneficiary

    If the original depositor of an IRA names their estate as the beneficiary of their account, or did not leave beneficiaries on their IRA, the IRA funds may go to their estate.

  • Entity

    A beneficiary who is not an individual, such as an estate, a charity or a non-look-through/non-see-through trust.

Questions?

A Fidelity representative can help you understand your options and guide you through each step of inheriting an IRA account.

800-343-3548

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