Terms of Use 

Traditional IRA assets pass directly to your beneficiaries, bypassing probate. However, the tax rules for 2026 are strict regarding how quickly those funds must be withdrawn.

The 10-Year Rule

Most non-spouse beneficiaries (like adult children) must withdraw the entire account balance within 10 years. If you died after you began taking Required Minimum Distributions (RMDs), your heirs must also take annual withdrawals during that 10-year window.

  • Tax Treatment: Every dollar withdrawn is taxed as ordinary income to the beneficiary.
  • No Penalty: Beneficiaries do not pay the 10% early withdrawal penalty, regardless of their age.

The Spousal Advantage

A surviving spouse is the only beneficiary who can "assume" the IRA. By rolling the funds into their own IRA, they can delay distributions until they reach their own RMD age (age 73 or 75, depending on birth year).

What if there is no beneficiary?

If the account defaults to your estate, the rules become more restrictive:

  • If you died before your RMD age: The estate must empty the account within 5 years.
  • If you died after your RMD age: The estate takes distributions over your remaining "ghost" life expectancy.