Three lanes at death
Since the SECURE Act, inherited-account beneficiaries fall into three groups with very different rules: a surviving spouse, the “eligible designated beneficiaries” who may still stretch, and all other designated beneficiaries, who follow the 10-year rule. Which lane a beneficiary is in — and therefore how much tax flexibility they have — is set the moment the owner dies, which is why naming the right beneficiary during life matters so much.
The surviving spouse: the widest options
A surviving spouse is the only beneficiary who can treat an inherited retirement account as their own. By rolling it over or electing spousal treatment, the surviving spouse can put the account in their own name, name their own beneficiaries, and use their own age for required distributions — deferring RMDs until they reach RMD age (currently 73) rather than being forced onto the deceased’s schedule (IRC § 408(d)(3); § 401(a)(9)). A spouse can instead choose to remain a beneficiary (sometimes useful if they are under 59½ and need penalty-free access), and SECURE 2.0 added an election letting a surviving spouse be treated as the deceased employee for distribution purposes. The spouse’s flexibility is unique.
Eligible designated beneficiaries
A second group, the eligible designated beneficiaries(EDBs), can still take distributions over life expectancy rather than in ten years (IRC § 401(a)(9)(E)):
- a minor child of the account owner — stretching until the age of majority, then switching to a 10-year clock;
- a disabled individual;
- a chronically ill individual;
- an individual not more than ten years younger than the owner (often a sibling or partner).
Two traps worth flagging: a grandchild is not an EDB (only the owner’s own minor child qualifies), and a minor child’s special status ends at majority. Disabled and chronically ill beneficiaries often inherit through a specially drafted trust, so the documentation matters.
Everyone else: the 10-year rule
Every other designated beneficiary — adult children, grandchildren, friends — follows the 10-year rule: the account must be emptied within ten years, with annual RMDs also required in years one through nine if the owner had already begun taking them (IRC § 401(a)(9)(H); IRS final regs, T.D. 10001). The mechanics and the before-vs-after-RBD distinction are detailed on the 10-year-rule page.
Side by side
| Beneficiary | Core option | Payout horizon |
|---|---|---|
| Surviving spouse | Treat as own (rollover) or remain beneficiary | Own life; RMDs at the spouse’s own RMD age |
| Minor child of the owner (EDB) | Life-expectancy stretch until majority | Stretch, then 10 years after reaching majority |
| Disabled / chronically ill (EDB) | Life-expectancy stretch | Over life expectancy |
| Not more than 10 years younger (EDB) | Life-expectancy stretch | Over life expectancy |
| Any other designated beneficiary | 10-year rule | Empty by year 10 (annual RMDs if owner died on/after RBD) |
Source: IRC § 401(a)(9), including (a)(9)(B), (a)(9)(E), and (a)(9)(H); IRS final regulations under § 401(a)(9) (T.D. 10001, 2024). Spousal rollover under § 408(d)(3). Roth accounts follow the 10-year deadline without annual RMDs.
Sources & methodology
Methodology & sources
Primary sources are cited in place: IRC § 401(a)(9) — the at-least-as-rapidly and 10-year rules at (a)(9)(B) and (a)(9)(H), and the EDB categories at (a)(9)(E) — and the spousal rollover at § 408(d)(3), linked to Cornell’s Legal Information Institute, together with the IRS final regulations (T.D. 10001, July 2024). The SECURE 2.0 spousal election and the age-73 RMD threshold are reflected as current. See our editorial standards.
This page is educational and is not legal, tax, or investment advice. The best option depends on the beneficiary’s age, needs, and tax situation; confirm the choice with a qualified professional before acting, and note that spousal and trust elections have deadlines.
Last verified July 20, 2026.