In this article
The Stretch IRA no longer works for most heirs. When an IRA owner dies after 2019, most beneficiaries must empty the inherited account within ten years. A legacy that lasts is still possible, but it takes more planning than naming a beneficiary.
What was the Stretch IRA?
For years, an IRA could be one of the longest-lasting gifts you could leave. When it passed to a younger heir, they could take small required distributions over their own life expectancy and leave the rest growing tax-deferred, or tax-free in a Roth, for decades. That strategy was called the Stretch IRA.
What changed?
The SECURE Act ended the stretch for most heirs. When an IRA owner dies after 2019, most beneficiaries have to empty the inherited account within ten years, and depending on when the owner died, some must also take a distribution each year along the way.
That matters because of timing. A large IRA left to an adult child can now land in their peak earning years, when the tax bite is biggest.
Who can still stretch?
A few beneficiaries are exceptions to the ten-year rule and can generally still take distributions over their life expectancy.
Your surviving spouse
- General rule
- The most flexibility, including treating the IRA as their own
Your child who hasn’t reached the age of majority
- General rule
- Life-expectancy distributions until they reach it, then the ten-year rule
A beneficiary who is disabled or chronically ill
- General rule
- Generally, life-expectancy distributions
A beneficiary not more than ten years younger than you
- General rule
- Generally, life-expectancy distributions
Most other heirs, including adult children
- General rule
- Empty the account within ten years
General rules for IRA owners who died after 2019. Individual facts can change the result.
If you inherit from your spouse
A surviving spouse who is the sole beneficiary can choose to treat the inherited IRA as their own, or roll it into their own IRA, and keep planning from there. That choice affects when distributions have to start, so it’s worth making on purpose.
What about a Roth IRA?
An inherited Roth IRA follows the same timing rules, but qualified withdrawals generally come out tax-free. That’s why a Roth can be such a useful account to leave to the people you love.
Five ways to plan around the ten-year rule
1. Check your beneficiary forms
They typically decide who gets the account, even if your will says something else. Name backup beneficiaries too.
2. Consider Roth conversions
Paying the tax on a conversion in a year when your bracket is low can leave your heirs an account that comes out tax-free.
3. Think about who gets which account
An heir in a lower tax bracket keeps more of a traditional IRA. A charity, which generally pays no income tax, keeps all of it.
4. Spread the withdrawals
Heirs who take money out across the ten years, instead of all at the end, may keep more of it out of the top brackets.
5. Look at life insurance
The death benefit generally isn’t taxable income to your beneficiaries, so it can help cover the taxes an inherited IRA brings.
Don’t miss a required distribution
Whether it’s your own IRA or one you inherit, missing a required distribution is expensive. The IRS charges a 25% excise tax on the amount you should have taken, reduced to 10% if you correct it in time.
How an inherited IRA fits your plan
In our 8 Elements, this is the work of the Dynasty Creator and the Tax Planner, because how you leave it matters as much as what you leave. The rules for inherited IRAs are complex, and they’re based on today’s tax law, which can change again. Your beneficiaries should be chosen with care.
Key takeaway
Most heirs must now empty an inherited IRA within ten years, and some must take distributions every year along the way. Check your beneficiary forms, consider Roth conversions, and decide who gets which account so more of what you leave reaches the people you leave it to.
Sources
- IRS, Retirement plan and IRA required minimum distributions FAQs
- IRS Publication 590-B, Distributions from Individual Retirement Arrangements
- IRS, Retirement topics: Beneficiary
- IRS, Life insurance and disability insurance proceeds
Sources reviewed October 29, 2026. Rules can change. This article is educational and is not personalized tax, legal, or financial advice.
The Terrio Group does not provide tax or legal advice. Consult your tax professional regarding your specific situation.
Frequently asked questions
- Does the Stretch IRA still exist?
- For most heirs, no. When an IRA owner dies after 2019, most beneficiaries must empty the inherited account within ten years. A few eligible beneficiaries can still use life-expectancy distributions.
- Who can still stretch an inherited IRA?
- Generally a surviving spouse, the owner’s child who hasn’t reached the age of majority (until they do), a beneficiary who is disabled or chronically ill, and a beneficiary not more than ten years younger than the owner.
- Do inherited Roth IRAs follow the ten-year rule?
- Yes, the same timing rules generally apply, but qualified withdrawals from an inherited Roth IRA generally come out tax-free.
- What happens if a required distribution is missed?
- The IRS charges a 25% excise tax on the amount that should have been taken, reduced to 10% if it’s corrected in time.
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