Also called: SECURE Act, EDB, Eligible Designated Beneficiary, inherited IRA
Most non-spouse heirs who inherit a retirement account from someone who died after 2019 must empty it by the end of the tenth year after the death.
If the original owner had already reached the required beginning date, the heir must also take annual distributions in years one through nine. Inherited pre-tax money is ordinary income to the heir, often in peak earning years; an inherited Roth follows the same deadline but comes out tax-free.
Exceptions exist for eligible designated beneficiaries: a surviving spouse, a minor child of the owner, a disabled or chronically ill person, and anyone not more than 10 years younger than the owner.