Quick Take to GO: How Inherited IRA Rules Work Missed withdrawals trigger penalties — though SECURE 2.0 reduced the excise tax from 50% to 25% (and just 10% if corrected on time) . Inherited IRA Distribution Rules by Beneficiary Type Beneficiary Type Distribution Rule Deadline Notes Spouse Switch to the 10-year rule at majority age (for children) RMDs at 73 or delay with rollover Most flexible; inherited status avoids 10% penalty before 59½ EDB Life expectancy stretch Start by 12/31 of the year after death May require annual RMDs depending on the owner’s age at death Non-EDB 10-year rule Must empty by 12/31 of year 10 5-year rule (if the owner died before RBD) or ghost expectancy Estate/Trust 5-year rule (if owner died before RBD) or ghost expectancy 5 years or life-expectancy schedule No…