Are RMDs required for an inherited IRA after recent death in 2024?
I'm struggling to get a clear answer about inherited IRAs and RMDs. My uncle passed away earlier this year (2024) and I inherited his IRA. He had already been taking Required Minimum Distributions for about a year or two before he died. I'm not his spouse - actually I'm his nephew and about 12 years older than he was (weird family situation). I'm not disabled or anything special category-wise. Every website I check seems to give different information about whether I need to take RMDs as the beneficiary of this inherited IRA. Some say yes, some say no, and others have all these complicated exceptions. Can anyone give me a straight answer about whether beneficiaries of inherited IRAs are required to take RMDs in this situation? Thanks in advance for any help!
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Micah Trail
This is actually a really specific situation, but I can help clear this up for you. Since your uncle passed away in 2024 and you're a non-spouse beneficiary who's not a minor child, disabled, or chronically ill, you fall under the 10-year rule from the SECURE Act. Basically, you don't have to take annual RMDs, but you must empty the entire inherited IRA by the end of the 10th year following the year of death (so by December 31, 2034). You can take distributions in any amount and any pattern you want during those 10 years - including taking nothing for 9 years and everything in year 10 if that works better for your tax situation. The confusion online might be because the rules changed with the SECURE Act in 2020, and there are different rules depending on when the original owner died. Since your uncle died in 2024, you're under the current rules.
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Kristin Frank
•Thanks for the info! So just to be totally clear - I don't have to take an RMD this year (2024) at all? And I can basically choose how much to withdraw each year as long as the account is empty by the end of 2034? That sounds much more flexible than I thought. Do you know if there's any benefit to spreading it out versus taking larger amounts later? I'm worried about the tax implications.
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Micah Trail
•You're exactly right - you don't need to take any specific RMD for 2024 or any year. You just need to have the entire account emptied by December 31, 2034. You have complete flexibility on the withdrawal schedule within that 10-year period. As for tax implications, spreading distributions over several years often makes sense to avoid pushing yourself into higher tax brackets. Taking everything in one year could result in a much higher tax bill than spreading it out. Consider your current tax bracket, expected future income, and potential tax law changes when planning your withdrawal strategy.
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Nia Watson
I went through something really similar last year with my mom's IRA and got so frustrated trying to figure it all out! I finally used https://taxr.ai to analyze all the inheritance documents and tax forms. They have this document analysis tool that explained exactly what I needed to do with the inherited IRA based on my specific situation. The tool checked all the inherited IRA rules that applied to me and gave me a clear breakdown of my options and deadlines. It saved me from making a costly mistake because I was about to follow outdated advice I found online.
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Alberto Souchard
•How does that work exactly? I'm in a similar situation but with a 401k not an IRA. Would it still help with that? The tax implications are giving me major anxiety.
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Katherine Shultz
•Sounds interesting but I'm skeptical about these online tools. How accurate was the information compared to what a professional would tell you? Did you double-check with an accountant?
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Nia Watson
•For the 401k question, yes it definitely helps with that too! It analyzes all retirement accounts including 401ks, 403bs, traditional and Roth IRAs. You just upload your documents and it identifies your specific situation and rules that apply. It saved me from a ton of anxiety too. Regarding accuracy, I actually did verify the information with my accountant afterwards, and he confirmed everything was correct. He was impressed with how detailed the analysis was. The difference was my accountant would have charged me for several hours of research that the tool did in minutes.
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Alberto Souchard
Just wanted to update after trying taxr.ai for my inherited 401k situation. It was actually really straightforward! I uploaded the death certificate, account statements and beneficiary forms, and it gave me a complete breakdown of the 10-year rule that applies to my situation. The analysis specifically pointed out that different rules would have applied if my relative had died before 2020 vs. after, which explained why I was getting conflicting advice online. It also showed me how to calculate the tax impact of different withdrawal strategies based on my current income. Totally worth checking out if you're confused about inherited retirement accounts!
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Marcus Marsh
If you need to actually talk to someone at the IRS about this (which I did for my inherited IRA), good luck getting through on the phone. I spent DAYS trying. Then I found https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c. They got me through to an actual IRS agent who confirmed my exact RMD requirements. They basically wait on hold with the IRS for you and call you once they have an agent on the line. I was super skeptical, but I was desperate after waiting on hold for 3+ hours myself multiple times. They got me through in about 90 minutes while I just went about my day.
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Hailey O'Leary
•Wait, this is a real thing? How does it actually work? Do they have some special connection to the IRS or something? I don't get it.
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Cedric Chung
•Yeah right. There's no way this actually works. The IRS phone lines are basically impossible to get through. If this service actually did what it claims, everyone would be using it. Sounds like you're selling something.
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Marcus Marsh
•It's actually pretty simple - they use an automated system that waits on hold for you. No special connections to the IRS, just technology that keeps redialing and waiting so you don't have to. When they reach a live agent, they call your phone and connect you directly to the IRS representative. You still talk to the same IRS agents everyone else does, you just don't waste your day on hold. Totally get the skepticism! I felt the same way. But after wasting over 12 hours trying to get through myself, I figured it was worth a shot. Think of it like those restaurant apps that hold your place in line and text you when your table is ready.
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Cedric Chung
Ok I need to eat crow here. After my skeptical comment, I tried Claimyr because I've been trying to get through to the IRS about my inherited IRA for weeks with no luck. I'm honestly shocked - it actually works! They called me back in about 2 hours, and suddenly I was talking to a real IRS person who confirmed exactly what Comment 1 said - I'm subject to the 10-year rule, don't need annual RMDs, but need to empty the account within 10 years of the death. The agent even gave me some tips about spreading out the distributions to minimize taxes. Saved me so much time and frustration!
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Talia Klein
The inherited IRA rules are confusing because they've changed several times. Here's a simple breakdown: 1) If the original owner died BEFORE Jan 1, 2020: Different rules applied (the old "stretch IRA" rules) 2) If the original owner died AFTER Dec 31, 2019: 10-year rule applies to most non-spouse beneficiaries The fact that your relative was already taking RMDs doesn't change your obligation as a beneficiary - you still follow the 10-year rule based on when they died (2024).
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Kristin Frank
•Thanks for breaking it down so clearly! So many websites don't specify the date cutoffs, which I think is why I was getting confused. Is there any scenario where I would have to take annual RMDs during the 10 year period, or can I definitely just withdraw on my own schedule?
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Talia Klein
•You're welcome! There is one exception to be aware of: if the original IRA owner died after their required beginning date (generally April 1 of the year following the year they turned 72 or 73 depending on their birth year), AND they died after 2019, some tax professionals believe the beneficiary might need to take annual RMDs in years 1-9 while still emptying the account by year 10. However, the IRS has been unclear on this point, and many advisors are telling clients to just focus on the 10-year empty rule until clearer guidance is issued. Given the complexity, this might be a good question for your tax professional if you're concerned about it.
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Maxwell St. Laurent
Has anyone used TurboTax to help with RMD calculations for inherited IRAs? I'm trying to figure out if it can handle this situation or if I need something more specialized.
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PaulineW
•I used TurboTax last year for my inherited IRA situation. It does ask about inherited retirement accounts but doesn't give great guidance on the 10-year rule specifically. It calculated what I owed after I took distributions, but didn't help me plan the best withdrawal strategy. I ended up using their tax professional add-on service to talk through it with someone.
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