Withdrawing from an inherited IRA

When you inherit an IRA, many of the IRS rules for required minimum distributions (RMDs) still apply. However, there may be additional rules based on your relationship to the deceased original owner.1


Do RMDs apply to inherited IRAs?

When inheriting an IRA or small business retirement savings plan, the rules for taking RMDs will depend on whether the beneficiary of the original depositor is a spouse, non-spouse2 or an entity (such as a trust, estate or charity). If you don't take the RMDs from your account, you will be subject to a penalty equal to 25% of the amount that should have been withdrawn.4


Withdrawal rules that apply to inherited Roth IRAs are slightly different because the original owner was never required to take an RMD from their account. Review the rules below to learn more about Inherited Roth retirement account withdrawal options available to beneficiaries. Keep in mind, as long as the assets have been in the original Roth IRA owner's account for 5 years or more, withdrawals are generally tax free.3

Important terms and definitions

  • 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

    Also a type of see-through or look-through trust, the accumulation trust allows the trustee to have authority to pay out or retain assets within the trust.

  • 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 and individual, such as an estate, a charity or a non-look-through/non-see-through trust.

  • RMD (Required Minimum Distribution)

    Yearly mandatory withdrawal from tax-deferred retirement accounts that start, for original depositors, upon reaching the age of 73. RMDs are also applicable to some IRA beneficiaries once they inherit assets from the original depositor of a retirement account they've inherited.


The withdrawal options for beneficiaries that inherited from an original depositor that passed away on or after January 1, 2020 are not yet finalized. As of February 2022, the regulations were proposed by the Internal Revenue Service (IRS). We anticipate the IRS to publish final regulations in the near future. Until then, it would be best to consult with a tax advisor on which withdrawal option you should follow if you inherited your account from an original depositor that passed away in 2020 or later. We will update this page to reflect when the proposed withdrawal options for post-2020 date of death have become final.


When did the original depositor pass away?

Review & select the date range below that applies to your inheritance situation and learn which beneficiary type and withdrawal options apply to you.

I am a spouse beneficiary of the original IRA owner.


When you inherit an IRA or Roth IRA, many of the IRS rules for required minimum distributions (RMDs) still apply. However, there may be additional rules based on your relationship to the deceased original owner.


Learn more and withdraw

I am a non-spouse, family member or friend who's named as a beneficiary of the original IRA owner.


When you inherit an IRA or Roth IRA, your distribution requirements will be based on certain factors, including the date of the original account owner's death.


Learn more and withdraw

I am a see-through trust beneficiary of the original IRA owner and qualify as a see-through trust.


Generally, a see-through trust distributes based on the oldest trust beneficiary's age based on Single Life Expectancy.


If the original owner passed away after their required beginning date the trust may use the longer of the single life expectancy of oldest beneficiary or the original owner.


Learn more and withdraw

I am a Trust, Estate, or Entity Beneficiary of the original IRA owner.


If the beneficiary is an entity, charity, or non-see through trust, and the owner had begun taking RMDs, the distributions would be based on the remaining Single Life Expectancy of the original, deceased account owner. If the owner was younger than 72, the assets must be completely distributed by December 31 of the 5th year containing the anniversary of the IRA owner's death.


Consult your tax advisor to determine if an exemption may apply to the trust.


Learn more and withdraw

I'm a spouse beneficiary AND the only beneficiary on the original depositor's IRA.


Learn more

I'm a non-spouse, non-eligible designated beneficiary AND the only beneficiary on the original depositor's IRA.


Learn more

I'm a non‐spouse, non-eligible designated beneficiary of the original owner with other non-spouse, non‐eligible designated beneficiaries.


Learn more

I'm a non‐spouse, non-eligible designated beneficiary of the original depositor with other non-spouse, non‐eligible designated beneficiaries.

I didn't inherit timely.


Learn more

I'm an eligible designated beneficiary AND the only beneficiary on the original depositor's IRA.


Learn more

I'm an eligible designated beneficiary (Minor Child of the original depositor) AND the only beneficiary on the original depositor's IRA.


Learn more

I'm a spouse beneficiary with other beneficiaries on the original depositor's IRA.


Learn more

I'm a spouse beneficiary with other, eligible designated beneficiaries on the original depositors IRA.

I didn't inherit timely


Learn more

I'm a spouse beneficiary with other beneficiaries, one of which is a minor child of the original depositor.

I didn't inherit timely


Learn more

I'm a non-spouse beneficiary with eligible designated beneficiaries of the original depositor's IRA.


Learn more

I'm an eligible designated beneficiary with other eligible designated beneficiaries, one of which is a minor child.

I didn't inherit timely


Learn more

I'm an estate entity, non-see-through trust beneficiary of the original depositor's IRA.


Learn more

I'm a trustee of a non-see-through trust that is the only beneficiary on the original depositor's IRA.


Learn more

I'm a trustee of a see-through trust with a single trust beneficiary that is the only beneficiary on the original depositor's IRA.


Learn more

I'm a trustee of a see-through trust that was the only beneficiary of the original owner's account and there are multiple beneficiaries.


Learn more

FAQs

  • 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.

Additional resources


IRA Beneficiary Distribution Options Tool

Use this tool to learn which withdrawal option(s) apply to your specific beneficiary situation


Beneficiary Distribution Options Tool


Inherited IRA RMD Calculator

Determine your estimated required minimum distribution from an Inherited IRA.


Inherited IRA RMD calculator


Retirement planning

Get guidance on retirement investing that makes sense for your current stage of life and the vision you have for your retirement.


Explore retirement planning


Fidelity Viewpoints®

Get insights from our financial experts on investing trends, financial markets, personal finance, and more.


Explore Viewpoints®