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 has options unavailable to most nonspouse beneficiaries, but the mechanics depend on account type. IRA options: the spouse may be able to treat the IRA as the spouse’s own or complete a rollover. Employer-plan options: the spouse may roll an eligible distribution to the spouse’s own IRA or eligible plan and may also have the SECURE 2.0 election under IRC § 401(a)(9)(B)(iv) to be treated as the deceased employee for distribution purposes. Treating an inherited IRA as the spouse’s own lets the survivor name their own beneficiaries and use their own required-distribution schedule rather than the deceased’s (IRC §§ 401(a)(9)(B)(iv), 401(a)(9)(C), 408(d)(3)). A spouse may instead choose to remain a beneficiary, which is sometimes useful if they are under 59½ and need penalty-free access. 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 — taking life-expectancy distributions only until age 21, 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 age 21 — the employee’s child is an eligible designated beneficiary only until age 21 for this federal rule. Disabled and chronically ill beneficiaries often inherit through a specially drafted trust, so the documentation matters.
Everyone else: the 10-year rule
Most nonspouse designated beneficiaries — adult children, grandchildren, friends — must empty the account by the end of year 10. Annual distributions in years 1-9 generally apply when the owner died on or after the required beginning date (IRC § 401(a)(9)(H); IRS final regulations, T.D. 10001). The mechanics and the before-vs-after-RBD distinction are detailed on the 10-year-rule page.
The owner’s applicable RMD age is generally 73 for those born in 1951-1959 and 75 for those born in 1960 or later. For a person born in 1959, the age-73 treatment reflects proposed Treasury regulations under REG-103529-23 addressing the statutory overlap. Inherited Roth IRAs generally have no annual years 1-9 RMD for an ordinary designated beneficiary but must be emptied by year 10; distributions are tax free only to the extent qualified under IRC § 408A.
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 age 21 | Stretch, then 10 years after age 21 |
| 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)(iv), (a)(9)(C), (a)(9)(E), and (a)(9)(H); Treas. Reg. §§ 1.401(a)(9)-3 through -5 and 1.408-8; IRS final regulations under § 401(a)(9) (T.D. 10001, 2024); proposed regulations REG-103529-23. Spousal rollover under § 408(d)(3). Inherited Roth accounts follow the 10-year deadline with no annual years 1-9 RMD for an ordinary designated beneficiary; distributions are tax free only to the extent qualified under § 408A.
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), the EDB categories at (a)(9)(E), and the spousal election at (a)(9)(B)(iv) — the spousal rollover at § 408(d)(3), and the Treasury regulations at Treas. Reg. §§ 1.401(a)(9)-3 through -5 and 1.408-8, together with the IRS final regulations (T.D. 10001, July 2024). Statutory links point to the official U.S. Code published by the Office of the Law Revision Counsel rather than an unofficial mirror. The SECURE 2.0 spousal election under § 401(a)(9)(B)(iv) and the birth-year RMD ages (73 for those born in 1951-1959, 75 for 1960 or later; the 1959 treatment reflecting proposed regulations REG-103529-23) 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 29, 2026.
Corrections & updates
- — Legal-accuracy corrections applied and verified against official primary sources (Wave E-1 correction pass): scoped the spouse’s “treat as own” option to IRAs and added the employer-plan rollover and the SECURE 2.0 election under IRC § 401(a)(9)(B)(iv); replaced the flat age-73 RMD statement with the birth-year ages (73 for 1951-1959, 75 for 1960 or later, the 1959 case reflecting proposed REG-103529-23); fixed the minor-child eligible-designated-beneficiary cutoff to age 21; tied the years 1-9 annual distributions to death on or after the required beginning date; and clarified that inherited Roth IRAs have no annual years 1-9 RMD but must be emptied by year 10, tax free only to the extent qualified under IRC § 408A. Statutory links repointed to official government sources.
- — Reviewer attribution activated (Evan Miller, Esq., Florida Bar No. 112646) and the page-level and related-card verification dates refreshed to July 29, 2026, per the signed Final URL Approval Memorandum.