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Planning · Retirement-Account Estate Planning Cluster

Retirement Accounts in Your Estate Plan

For many families the largest single asset is a retirement account — and it is the one most likely to pass in a way the owner never intended. Retirement accounts move by beneficiary form, not by will, and the SECURE Act rewrote what heirs must do with them. This is the map: how these accounts pass, who the rules treat differently, and the decisions worth making now, each cited to current law.

They pass outside the will

An IRA or 401(k) does not pass under your will. It passes to the person named on its beneficiary designation form, and that form controls no matter what your will or trust says. This is enormously powerful and enormously easy to get wrong: a form naming an ex-spouse, a predeceased sibling, or no one at all will govern at death, and it cannot be corrected afterward. The single most valuable thing most people can do with their retirement accounts is keep the beneficiary forms current — the subject of the beneficiary-audit page.

The SECURE Act shift

For decades a non-spouse heir could “stretch” an inherited IRA over their own life expectancy, spreading the income tax across decades. The SECURE Act ended that for most beneficiaries of owners who die after 2019, replacing it with the 10-year rule: the inherited account must be emptied within ten years of death (IRC § 401(a)(9)(H)). The IRS’s 2024 final regulations (T.D. 10001, effective 2025) added the wrinkle that has confused nearly everyone: if the owner had already started required minimum distributions, the beneficiary must also take annual RMDs in years one through nine, not just empty the account by year ten. The full mechanics are on the 10-year-rule page.

Why it matters for planning: compressing a large pre-tax account into ten years can push heirs into higher tax brackets during their peak earning years. That single change has made Roth conversions, beneficiary choices, and the timing of withdrawals far more consequential than they were under the old stretch.

Who the rules treat differently

Not everyone is on the 10-year clock. A category called eligible designated beneficiaries can still take distributions over life expectancy: a surviving spouse, a minor child of the account owner (until majority, then a 10-year clock), a disabled or chronically ill individual, and a beneficiary not more than ten years younger than the owner (IRC § 401(a)(9)(E)). A surviving spouse has the most options of all, including treating the account as their own. The differences — and why naming the right beneficiary matters so much now — are laid out on the spouse-vs-non-spouse page.

The Roth angle

The 10-year rule taxes traditional-IRA heirs on every dollar they withdraw. A Roth changes the calculus: the original owner pays the income tax up front on a conversion, takes no required distributions during life, and leaves an account that heirs can inherit and withdraw income-tax-free (though still within ten years). Whether pre-paying that tax helps the next generation depends on whose bracket is higher — the mechanics, and the cases where it backfires, are on the Roth-conversions page.

Annuities inside an IRA

An IRA is already tax-deferred, so an annuity held inside one is purchased for guaranteed income, not for tax deferral — a distinction worth understanding before assuming the two stack. A particular contract, the qualified longevity annuity contract (QLAC), can even push a slice of required distributions out to age 85. How IRA annuities interact with the distribution rules, and which death rules apply, are covered — educationally, without product recommendations — on the annuities-inside-an-IRA page.

These decisions interact with the rest of an estate plan and with each beneficiary’s own tax situation. If you want a professional to model your accounts against your goals, our directory of estate-planning professionals lists people you can verify yourself.

Common questions

Does my will control who gets my IRA?

No. A retirement account passes to whoever is named on its beneficiary designation form, and that form overrides your will entirely. If the form names an ex-spouse, or names no one, the account follows the form (or the plan's default), no matter what your will says. Reviewing and updating beneficiary forms is one of the highest-value, lowest-effort steps in an estate plan — see the beneficiary-audit page.

Can my children still 'stretch' an inherited IRA over their lifetimes?

Generally no, for deaths after 2019. The SECURE Act replaced the lifetime stretch for most non-spouse beneficiaries with a 10-year rule: the inherited account must be fully distributed within ten years of the owner's death (IRC § 401(a)(9)(H)). Certain 'eligible designated beneficiaries' — a surviving spouse, a minor child of the owner, a disabled or chronically ill person, or someone not more than ten years younger — can still stretch. Everyone else is on the 10-year clock.

Do I have to take money out every year during those ten years?

It depends on when the owner died relative to their required beginning date. Under the IRS's 2024 final regulations, if the owner had already reached their required beginning date and started RMDs, a non-eligible beneficiary must take annual required distributions in years one through nine and empty the account by year ten. If the owner died before that date, there are no annual RMDs — only the year-ten deadline. These annual RMDs are required beginning in 2025.

Sources & methodology

Methodology & sources

The governing statute is IRC § 401(a)(9), including the 10-year rule at § 401(a)(9)(H) and the eligible-designated-beneficiary categories at § 401(a)(9)(E), linked to Cornell’s Legal Information Institute. The annual-RMD-within-ten-years requirement comes from the IRS’s final regulations under § 401(a)(9) (Treasury Decision 10001, July 2024), effective for 2025. Figures and rules are re-verified on each change in guidance — see our editorial standards.

This page is educational and is not legal, tax, or investment advice. Retirement-account rules interact with your other assets and each beneficiary’s situation; use this to understand the framework and confirm the details with a qualified professional.

Last verified July 20, 2026.

Continue in the Retirement-Account Estate Planning cluster

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IRC §401(a)(9)(H) · T.D. 10001

The 10-year rule

The SECURE Act ended the lifetime 'stretch' for most non-spouse heirs: inherited accounts must now empty within ten years. The 2024 final regulations added a twist — annual RMDs within those ten years when the owner had already started taking them. What the rule requires now, cited to the statute and the final regs.

Primary-source citedVerified July 20, 202617 min
Checklist

The beneficiary audit

A beneficiary designation beats your will every time — and a stale one sends money to the wrong person with no way to fix it after death. Why the form controls, the mistakes that surface too late, and a printable audit checklist.

Primary-source citedVerified July 20, 202614 min
IRC §401(a)(9)(B), (E)

Spouse vs. non-spouse

A surviving spouse can do something no other heir can — treat the account as their own. The spousal rollover, the eligible-designated-beneficiary categories that still allow a stretch, and the ordinary 10-year rule for everyone else, side by side.

Primary-source citedVerified July 20, 202615 min
IRC §408A

Roth conversions

Converting a traditional IRA to a Roth means paying income tax now so heirs inherit tax-free — and a Roth has no lifetime required distributions for the original owner. When pre-paying the tax helps the next generation, and when it doesn't. Mechanics, not a recommendation.

Primary-source citedVerified July 20, 202615 min
IRC §401(a)(9) · QLAC

Annuities inside an IRA

An IRA is already tax-deferred, so an annuity inside one is bought for income, not for deferral. How an IRA annuity interacts with required distributions, the QLAC that can push RMDs to age 85 (limit $210,000 for 2026), and which death rules apply. Educational mechanics only.

Primary-source citedVerified July 20, 202614 min

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