Inherited IRA heirs must drain accounts within 10 years
Most non-spouse heirs must fully drain an inherited IRA within 10 years. Withdrawing the full balance in Year 1 pushes the entire amount into ordinary income.
The average IRA balance is $146,400, according to Q4 2025 data. Spreading a $257,000 inherited IRA evenly across 10 years keeps each distribution in a lower tax bracket.
The SECURE Act rewrote the inheritance rules for retirement accounts in 2019. Missing the 10-year window results in a steep IRS penalty, while emptying the account too fast can lead to a large tax bill.