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Overview of Rule Changes
Inherited IRA Rules Have Changed — Here’s What You Need to Know
The SECURE Act of 2019, followed by additional IRS regulations in 2022
and finalized clarifications in 2024, reshaped how inherited retirement accounts must be handled.
As of January 2025, most non-spouse beneficiaries are now required to fully distribute inherited IRA assets within 10 years of the original
owner’s death. The former “stretch IRA” option is now limited to eligible designated beneficiaries such as surviving spouses, minor children, and individuals with disabilities or chronic illness.
These rules have created new planning challenges and opportunities. Beneficiaries who manage withdrawals intentionally — instead of reactively — can reduce tax burdens and maintain long-term financial control.
Sidebar: Timeline of Changes
Year
Legislation / Event
2019
SECURE Act
2022
IRS Proposed Rules
2024
IRS Final Rule
Impact on Beneficiaries
Introduced 10-Year Rule; removed lifetime "stretch" for most non-spouse heirs.
Added Required Minimum Distribution (RMD)* continuation requirement if decedent had started RMDs.
Finalized enforcement details.
2025
Effective Enforcement
10-Year Rule fully applies to post-2020 deaths.
*Required Minimum Distribution (RMD): The amount the IRS requires individuals to withdraw each year from certain retirement accounts once they reach a specific age.