An inherited IRA RMD calculator helps you plan withdrawals from an IRA you inherited so it is emptied on time under the 10-year rule. The inherited IRA RMD calculator uses this formula: Level: payment = balance × r / (1 – (1+r)^(-n)) when r>0, else balance/n. Equal: balance/n. End: withdrawal 0 this year; balloon = balance×(1+r)^n. For a $250,000 account growing 6% a year with 10 years left, level withdrawals of about $33,967 a year empty it on schedule, with about $8,152 of tax each year at a 24% rate.
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How to use the inherited IRA RMD calculator
- Enter the current balance of the inherited IRA.
- Enter the years left in your 10-year window.
- Enter an expected growth rate and your marginal tax rate.
- Choose a strategy (level, equal share or wait) and read this year’s withdrawal and tax.
What formula does the inherited IRA RMD calculator use?
- Level: withdrawal = balance × r ÷ (1 − (1 + r)^−years), which empties the account by the end of the window if it earns r a year
- Equal share: withdrawal = balance ÷ years remaining
- Wait: nothing this year; the whole balance, grown at r, comes out in the final year
- Estimated tax = withdrawal × your marginal tax rate
Inherited IRA RMD calculator worked example
A $250,000 inherited traditional IRA, 10 years left, 6% growth and a 24% tax rate:
| Strategy | First-year withdrawal | Tax at 24% |
|---|---|---|
| Level (empties in 10 years) | $33,967 | $8,152 |
| Equal share (balance ÷ 10) | $25,000 | $6,000 |
| Wait until year 10 | $0, then about $447,712 | about $107,451 if still 24% |
Taking the whole account in one year often pushes part of it into a higher bracket, which is why many heirs spread withdrawals out.
The 10-year rule and who it applies to
For deaths after 2019, the IRS says the SECURE Act requires most beneficiaries to empty the account by the end of the 10th year after the owner’s death. These eligible designated beneficiaries can instead use life-expectancy payments:
- the surviving spouse;
- a minor child of the owner (until the age of majority);
- a disabled or chronically ill person;
- a person not more than 10 years younger than the owner.
When you also need annual RMDs
Under the final regulations that apply from 2025, if the owner died on or after their required beginning date (they had already started RMDs), a beneficiary on the 10-year rule must also take an annual RMD in years 1 to 9, based on life expectancy, and empty the account by year 10. If the owner died before that date, there is no annual minimum, only the 10-year deadline. The IRS waived the penalty for missed annual amounts for 2021 to 2024.
A missed RMD can trigger a 25% excise tax on the shortfall, reduced to 10% if corrected within two years, reported on Form 5329. This inherited IRA RMD calculator does not compute the life-expectancy minimum, so check that each year’s withdrawal is at least that amount.
Planning tips
- Fill lower tax brackets in years with less other income, such as before you start a pension or after you retire.
- Withdrawals from an inherited traditional IRA are taxable income; qualified withdrawals from an inherited Roth IRA generally are not.
- Do not roll an inherited IRA into your own IRA unless you are the surviving spouse.
Estimates for education only, not tax, legal or financial advice. Check current rules with the tax authority or a qualified adviser.
Keeping track of withdrawals
Keep a simple record each year of the inherited account’s December 31 balance, what you withdrew and the tax withheld. Custodians report distributions on Form 1099-R, but they do not always know which rules apply to you as a beneficiary. Run the inherited IRA RMD calculator each year with the new balance, since growth or losses change the amount needed to empty the account on time. If you inherited from someone who had already started RMDs, ask the custodian to confirm the annual minimum each year. Missing a required distribution can lead to an excise tax, which is reduced if the shortfall is corrected promptly, so it pays to check early in the year. The inherited IRA RMD calculator can show what is left to withdraw.
Related converters and calculators
Related calculators:
- RMD calculator: your own IRA
- IRA calculator: growth
- Roth IRA calculator: tax-free growth
- Income tax calculator: bracket
Sources
IRS: RMD FAQs; IRS Publication 590-B; Federal Register: Final RMD regulations (2024); IRS Notice 2024-35.
Questions about this calculator
What is the 10-year rule for inherited IRAs?
Most non-spouse beneficiaries must empty the account by the end of the 10th year after the owner’s death.
Do I have to take money out every year?
Yes, if the owner had already reached the required beginning date; annual RMDs apply in years 1 to 9 from 2025.
Who is exempt from the 10-year rule?
A surviving spouse, minor child, disabled or chronically ill person, or someone not more than 10 years younger than the owner.
What is the penalty for a missed RMD?
A 25% excise tax, or 10% if corrected within two years.
Are inherited IRA withdrawals taxable?
Traditional IRA withdrawals are taxable income; qualified Roth withdrawals generally are not.
Check the assumptions and units before relying on a result. Financial, tax and health estimates do not replace advice for your individual circumstances.
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