The inherited Roth IRA RMD rules are simpler than most heirs expect: a non-spouse beneficiary owes no annual required minimum distributions in years 1 through 9 and only has to empty the account by December 31 of the tenth year after the original owner’s death. That single point causes a great deal of confusion, because the rules behave differently for an inherited traditional IRA.
Under the inherited Roth IRA RMD rules, a designated beneficiary who is not an eligible designated beneficiary takes no annual required minimum distributions in years 1 through 9 and must fully distribute the account by December 31 of the tenth year after death. Because a Roth owner has no required beginning date, no annual RMDs ever apply during the 10-year window (Source: IRS Publication 590-B, 2025).
Do you have to take RMDs from an inherited Roth IRA?
No. The inherited Roth IRA RMD rules require no annual required minimum distributions in years 1 through 9. A Roth owner never has a required beginning date, so every Roth owner is treated as dying before that date. Under the 10-year rule, “no distribution is required for any year before the 10th year” (Source: IRS Publication 590-B, 2025).
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The answer has two parts. Yes, most non-spouse beneficiaries are subject to the year-10 deadline; but no, they do not face the annual RMD schedule that can catch beneficiaries of an inherited traditional IRA. A traditional IRA owner has a required beginning date tied to age 73 (age 75 if born in 1960 or later), and if that owner dies on or after it, the 2025 final regulations require annual RMDs in years 1 through 9 plus a year-10 payout. A Roth owner never takes lifetime distributions (Source: IRS Publication 590-B, 2025), so the annual-RMD branch can never attach to an inherited Roth. Only the year-10 deadline applies.
What is the inherited Roth IRA 10-year rule?
The 10-year rule originates in the SECURE Act of 2019 and applies to owners who die after December 31, 2019. A designated beneficiary who is not an eligible designated beneficiary must empty the inherited Roth by December 31 of the tenth calendar year after death, replacing the lifetime “stretch” that once applied to most heirs (Source: IRS Publication 590-B, 2025).
Before this change, many beneficiaries could spread distributions across their own life expectancy; that “stretch” now survives only for the narrow group described below. The rule counts calendar years, not 365-day periods: if the original owner died in 2025, the tenth year is 2035, and the account must be empty by December 31, 2035 (Source: IRS, Retirement Topics, Beneficiary, irs.gov). Deaths in 2019 or earlier generally fall under the older rules.
Inherited Roth IRA vs. inherited traditional IRA under the 10-year rule
A key difference is whether the annual-RMD branch can attach: it attaches to some inherited traditional IRAs but never to an inherited Roth, because a Roth owner has no required beginning date. This table compares the two under the same 10-year deadline.
| Feature | Inherited Roth IRA | Inherited Traditional IRA |
|---|---|---|
| Annual RMDs in years 1 to 9? | No, never (owner deemed to die before the required beginning date) | Yes, if the owner died on or after the required beginning date |
| Full distribution deadline | December 31 of year 10 | December 31 of year 10 |
| Are distributions taxable? | Generally income-tax-free once the 5-year holding period is met | Generally taxed as ordinary income |
| Owner’s required beginning date | None (no lifetime RMDs for a Roth owner) | Age 73, or age 75 if born in 1960 or later |
The traditional-IRA side has its own timing traps, covered in our guide to the three versions of the inherited IRA 10-year rule. Because a traditional IRA generally becomes taxable income to heirs, some owners use a Roth conversion during their lifetime so that Roth money passes on instead of pre-tax money. Any traditional accounts you hold remain subject to the rules for required minimum distributions in 2026, which do not apply to an inherited Roth.
Are inherited Roth IRA withdrawals tax-free?
Distributions from an inherited Roth IRA are generally income-tax-free once the account has satisfied a five-year holding period, and no 10% early-withdrawal penalty applies to a beneficiary at any age. If the account is less than five years old when you withdraw, the earnings portion can be taxable, though contributions and converted amounts still come out tax-free (Source: IRS Publication 590-B, 2025).
Tax-free treatment is a main reason a Roth inheritance is often described as favorable, but it is not automatic: the distribution has to be “qualified,” which for an inherited Roth turns primarily on the five-year holding period below.
How the 5-year holding period works on an inherited Roth
The five-year holding period on an inherited Roth does not restart when you inherit. It carries over from the original owner and counts from January 1 of the year that owner first funded any Roth IRA. Once five years have passed, the earnings portion of a distribution becomes income-tax-free; before then, withdrawn earnings can be taxable (Source: IRS Publication 590-B, 2025).
If the owner opened their first Roth in 2018 and died in 2026, the period was satisfied long ago and earnings distributions are tax-free. If the owner opened their first Roth in 2024 and died in 2026, the account is not yet five years old, and earnings withdrawn before the five-year mark can be taxable. Our explainer on the 5-year rule for Roth IRAs covers the mechanics in more detail.
Ordering rules when the Roth is under five years old
If you inherit a Roth that has not yet met the five-year test, the IRS ordering rules decide which dollars come out first, and they generally work in the beneficiary’s favor. Contributions are treated as withdrawn first, converted amounts next, and earnings last, so the only potentially taxable layer is reached only after the tax-free layers are exhausted. Amounts leave in this order:
- Contributions the owner made come out first, always tax-free and penalty-free.
- Converted amounts come out next, also tax-free to a beneficiary.
- Earnings come out last, and only these are potentially taxable, and only if the five-year holding period has not been met (Source: IRS Publication 590-B, 2025).
So even a “young” inherited Roth often produces little or no taxable income, because withdrawals reach the earnings layer only after the contribution and conversion layers are exhausted.
How the rules change by beneficiary type
The 10-year rule applies to non-spouse designated beneficiaries. Eligible designated beneficiaries, including a surviving spouse, may instead stretch distributions over their life expectancy. Estates, most trusts, and charities that are not designated beneficiaries follow their own, often shorter, timelines. Your category determines whether the 10-year deadline or a lifetime schedule applies (Source: IRS Publication 590-B, 2025).
Eligible designated beneficiaries, the five who can still stretch
Eligible designated beneficiaries (EDBs) are exempt from the 10-year rule and may take distributions over their own life expectancy instead, preserving a version of the older stretch approach. The tax law recognizes five categories, and a beneficiary who fits any one of them can generally spread withdrawals across a lifetime rather than emptying the account by year 10 (Source: IRS Publication 590-B, 2025). The five categories are:
| Eligible designated beneficiary | Key detail |
|---|---|
| Surviving spouse | Has more options than other beneficiaries, including treating the account as their own |
| Minor child of the owner | Uses the life-expectancy stretch until age 21, then switches to the 10-year rule |
| Disabled individual | Must meet the tax-law definition of disabled |
| Chronically ill individual | Must meet the tax-law definition of chronically ill |
| Individual not more than 10 years younger than the owner | Often a sibling, partner, or friend close in age |
A minor child of the owner keeps EDB status only until age 21. The account then switches to the 10-year rule, so distributions must finish by December 31 of the tenth year after the child turns 21. This age-21 cutoff is uniform under the IRS final regulations, which replaced the older state-by-state “age of majority” approach.
Non-spouse (ordinary) designated beneficiaries
Most adult children, grandchildren, and other individuals who are more than 10 years younger than the owner and do not otherwise qualify as EDBs are ordinary designated beneficiaries. They are the primary audience for the inherited Roth IRA RMD rules: no annual RMDs on an inherited Roth in years 1 through 9, and full distribution by December 31 of year 10.
Estates, trusts, and charities
When a Roth IRA passes to a non-individual, such as an estate, many types of trust, or a charity, the beneficiary is generally not a “designated beneficiary” and can face a shorter distribution window. Whether a trust qualifies to look through to its individual beneficiaries depends on its terms. Our overview of inherited IRA rules and tax strategies covers these situations, which usually warrant professional review.
Can a surviving spouse avoid the 10-year rule?
Often, yes. A surviving spouse is an eligible designated beneficiary and generally has options a non-spouse does not, including treating the inherited Roth as their own, completing a spousal rollover, keeping it as an inherited IRA, or disclaiming it. Treating it as their own removes the 10-year deadline entirely, because a Roth owner has no lifetime RMDs (Source: IRS Publication 590-B, 2025).
A surviving spouse typically chooses among these paths:
- Treat the Roth IRA as their own, or roll it into their own Roth IRA. The account is then treated as if the spouse had always owned it, with no lifetime RMDs and no 10-year deadline.
- Remain a beneficiary under the inherited-IRA rules, which can make sense for a younger spouse who may want penalty-free access before age 59½.
- Disclaim some or all of the account so it passes to the contingent beneficiary, a decision that is irrevocable and time-sensitive.
Treating the account as one’s own lets the money keep growing tax-free with no forced withdrawal date, which many surviving spouses find straightforward, though the right choice depends on age, cash needs, and other circumstances.
What happens if you miss the 10-year deadline?
If a required amount is not withdrawn on time, the IRS imposes an excise tax on the shortfall. Under SECURE 2.0, that penalty is 25% of the amount not distributed for tax years beginning after December 29, 2022, reduced to 10% if corrected within a two-year window. The tax is reported on Form 5329, which is also used to request a waiver (Source: IRS Instructions for Form 5329, 2025).
The excise tax was historically 50% of the shortfall, and many older articles still quote that figure, but SECURE 2.0 lowered it to 25%, and to 10% if the failure is corrected within the two-year correction window (Source: IRS Instructions for Form 5329, 2025). For an inherited Roth, the practical risk is missing the single year-10 deadline rather than a series of annual RMDs, because none are owed in years 1 through 9. The IRS also waived this excise tax for certain missed beneficiary RMDs for 2021 through 2024 while the final regulations were settled, but that relief mattered mainly for inherited traditional IRAs (Source: IRS Notices 2022-53, 2023-54, and 2024-35, irs.gov).
Is it smart to wait until year 10 to withdraw?
Because an inherited Roth requires no annual RMDs, a beneficiary can withdraw in a lump sum, spread withdrawals out, or leave the account untouched until year 10. Since qualified Roth distributions are income-tax-free, keeping the money invested for the full period lets any growth stay tax-sheltered until the account must be emptied (Source: IRS Publication 590-B, 2025).
With a traditional inherited IRA, spreading withdrawals across the decade is often about smoothing taxable income. With a Roth, that pressure largely disappears, because qualified distributions are not taxable, so the main variable becomes how long the balance stays inside the tax-free wrapper. Any growth that occurs while the account remains invested stays inside that tax-free wrapper until the account must be emptied, whereas money moved out early continues growing in a taxable environment where future earnings can be taxed.
The takeaway is not a specific number, since actual returns vary and can be negative. The point is structural: the tax-free wrapper only works while the money stays inside it, and money moved to a taxable brokerage account can generate dividends or gains that count toward thresholds such as the net investment income tax (3.8% over $200,000 of modified adjusted gross income for a single filer or $250,000 for joint filers in 2026). Whether waiting fits any individual situation depends on cash needs, other income, and estate goals.
What happens to the account when the beneficiary dies?
If you inherit a Roth IRA and later die before the account is emptied, your own beneficiary is a “successor beneficiary.” The inherited-account clock generally continues rather than resetting, so a successor typically must finish distributions within the timeframe already running, not a fresh 10 years (Source: IRS Publication 590-B, 2025).
A successor beneficiary steps into the schedule already running rather than starting a new 10-year period. If you inherited as an ordinary designated beneficiary inside a 10-year window, your successor generally has to empty the account by that same year-10 deadline. If you inherited as an eligible designated beneficiary using a life-expectancy stretch, your death typically triggers a fresh 10-year window for the successor. Because the mechanics vary, confirming the specific timeline against current IRS guidance is worthwhile.
Does the 10-year rule work differently for an inherited Roth 401(k)?
An inherited Roth 401(k) follows post-2019 distribution timing similar to an inherited Roth IRA, and since 2024 Roth 401(k)s no longer require lifetime RMDs for the original owner. Plan rules and rollover options differ from IRAs, so a beneficiary may want to confirm the plan’s terms and consider rolling the balance into an inherited Roth IRA where permitted (Source: IRS, RMD FAQs, irs.gov).
Eliminating lifetime RMDs for Roth 401(k) owners in 2024 moved these accounts closer to Roth IRA treatment, reinforcing that a Roth workplace-plan owner is treated as dying before a required beginning date, so the annual-RMD branch does not attach here either. Even so, employer plans carry their own distribution provisions, and a beneficiary’s options can be narrower inside a plan than in an IRA. Where the plan allows, a direct rollover into an inherited Roth IRA can provide more flexibility, subject to the same overall deadline.
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Frequently asked questions
Do beneficiaries have to take RMDs from an inherited Roth IRA?
No. An inherited Roth IRA subject to the 10-year rule requires no annual required minimum distributions in years 1 through 9. Because a Roth owner has no required beginning date, every Roth owner is treated as dying before that date, and the account only has to be fully emptied by December 31 of the tenth year after the owner’s death (Source: IRS Publication 590-B, 2025).
What is the 10-year rule for an inherited Roth IRA?
The 10-year rule comes from the SECURE Act of 2019. For owners who die after December 31, 2019, a non-spouse designated beneficiary who is not an eligible designated beneficiary must fully distribute the inherited Roth by December 31 of the tenth calendar year after death. No annual RMDs are required during that window (Source: IRS Publication 590-B, 2025).
Are inherited Roth IRA distributions taxable?
Generally no, once the account has met a five-year holding period. Qualified distributions from an inherited Roth IRA are income-tax-free, and no 10% early-withdrawal penalty applies. If the account is under five years old, the earnings portion can be taxable, but contributions and converted amounts still come out tax-free under the ordering rules (Source: IRS Publication 590-B, 2025).
Can a surviving spouse avoid the 10-year rule on an inherited Roth IRA?
Often yes. A surviving spouse is an eligible designated beneficiary and may treat the inherited Roth as their own, roll it over, keep it as an inherited IRA, or disclaim it. Treating it as their own removes the 10-year deadline entirely, since a Roth owner takes no lifetime RMDs (Source: IRS Publication 590-B, 2025).
What happens if you don’t withdraw an inherited IRA within 10 years?
The IRS imposes an excise tax on the amount that should have been distributed. Under SECURE 2.0, the penalty is 25% of the shortfall for tax years beginning after December 29, 2022, reduced to 10% if corrected within a two-year window. It is reported, and any waiver requested, on Form 5329 (Source: IRS Instructions for Form 5329, 2025).
Does the 5-year rule apply to an inherited Roth IRA?
Yes. The five-year rule sets when Roth earnings become tax-free. The clock carries over from the original owner and counts from January 1 of the year that owner first funded any Roth IRA; it does not reset at inheritance. Once five years have passed, qualified distributions of earnings are tax-free (Source: IRS Publication 590-B, 2025).
Who is exempt from the 10-year rule?
Eligible designated beneficiaries can still stretch distributions over their life expectancy instead of following the 10-year rule. The five categories are a surviving spouse, the owner’s minor child (until age 21), a disabled individual, a chronically ill individual, and an individual not more than 10 years younger than the owner (Source: IRS Publication 590-B, 2025).
Sources
- IRS, Publication 590-B, Distributions from Individual Retirement Arrangements (2025), irs.gov/publications/p590b.
- IRS, Retirement Topics, Beneficiary, irs.gov.
- IRS, Required Minimum Distributions (RMDs) FAQs, irs.gov.
- IRS, Instructions for Form 5329 (2025), irs.gov.
- IRS, Notices 2022-53, 2023-54, and 2024-35 (excise-tax relief for missed beneficiary RMDs, 2021 through 2024), irs.gov.
- SECURE Act (2019) and SECURE 2.0 Act (2022), as reflected in current IRS guidance and the 2024 final regulations.
