This article is part of the Biblically Informed Framework for Retirement Stewardship (BIFRS). It was originally published in November 2024 and updated in May 2026.
Regular readers know that I think a big part of retirement stewardship is having plans and documentation in place so that things go as well as we have hoped and prayed for after we’re gone, especially for our spouse should we predecease them. I sometimes refer to this as “loving your widow”—drawing on verses such as 1 Tim. 5:8, Proverbs 21:5, and Luke 14:28 that emphasize caring for one’s family and wise planning for future uncertainty.
The IRS rules on inherited IRAs—how they are distributed and taxed—are important, sometimes confusing, and they have changed significantly in recent years as a result of the SECURE Act (2019), SECURE Act 2.0 (2022), and IRS final regulations that took effect in 2025. This article focuses on surviving spouses, whom the IRS classifies as “eligible designated beneficiaries.” I’ll also touch on non-spouse beneficiaries at the end.
I have designated my wife as the primary beneficiary of my IRA accounts. If you haven’t named a primary beneficiary for yours, please do it now—it’s one of the most important and easiest estate planning steps you can take.
The foundation: two key scenarios
The available options for a surviving spouse depend primarily on one question: Was the deceased IRA owner already taking Required Minimum Distributions (RMDs) at the time of death? RMDs begin at age 73 for most people (age 75 for those born in 1960 or later, beginning in 2033). The answer to this question shapes which distribution options are most advantageous.
Scenario 1: deceased owner was under RMD age (under 73)
In this scenario, the surviving spouse has four options:
Spend it. A surviving spouse can withdraw the entire balance as a lump sum. This is taxable as ordinary income in the year withdrawn and should only be considered if there is a compelling reason, such as immediate need or a very low-income year.
Disclaim the account. The spouse can elect not to inherit the account, usually for tax planning reasons. This is rarely the right choice, but it may make sense in specific estate planning situations with professional guidance.
Spousal rollover. If the surviving spouse has their own existing IRA, they can roll the inherited funds into it. The merged account then follows standard rules—RMDs starting at age 73, and the spouse’s own beneficiaries inherit it in turn. This is the most straightforward option for spouses with their own IRAs.
Inherited IRA. The surviving spouse can leave the assets in an inherited IRA in the deceased’s name and take distributions on a schedule tied to the age at which the deceased would have reached RMD age. This can be advantageous in certain age-gap situations.
Scenario 2: deceased owner was at or over RMD age (73 or older)
When the original owner had already started RMDs, the surviving spouse has similar options—but the inherited IRA option now allows the spouse to be treated as if they were the original account owner. The RMD is calculated using the greater of the spouse’s life expectancy under the Uniform Lifetime Table or the deceased’s remaining life expectancy under the Single Life Table.
There was a key update in 2026: The Uniform Lifetime Table Advantage.
Under the SECURE Act 2.0, which took effect in 2024 and continues in 2026, surviving spouses who continue as inherited IRA beneficiaries may now use the Uniform Lifetime Table (Table III) rather than the Single Life Expectancy Table (Table I) to calculate their RMDs.
This matters considerably. Using a $500,000 example at age 73, the old Single Life Table requires dividing by 16.4, which equals $30,488 (6.1% withdrawal). The Uniform Lifetime Table is divided by 26.5, which equals $18,868 (3.8% withdrawal). The difference is $11,620 annually, resulting in roughly $2,556 less in annual income tax at the 22% bracket, while leaving more in the account to grow tax-deferred.
Required Minimum Distributions (RMDs) in 2026
For 2026, the RMD age remains 73 for anyone born before 1960. Those born in 1960 or later will not be required to take RMDs until age 75, beginning in 2033. The RMD penalty for missed distributions is 25%, reduced to 10% if corrected within two years.
RMDs are calculated by dividing the prior year-end account balance by a life expectancy factor from the applicable IRS table (Publication 590-B). The factors were last updated in 2021 and have not changed for 2026.
Qualified Charitable Distributions (QCDs) are more valuable in 2026
Surviving spouses who are 70½ or older and charitably inclined should be aware that Qualified Charitable Distributions (QCDs) from IRAs are especially advantageous in 2026. The QCD annual limit has increased to $111,000 per individual in 2026 (up from $108,000 in 2025). A spouse with their own IRA can also make up to $111,000 in QCDs, for a combined $222,000 per couple.
QCDs are particularly valuable in 2026 because the One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, introduced new limits on traditional charitable deductions for itemizers—a 0.5% AGI floor and a 35% maximum tax benefit cap. QCDs bypass both restrictions entirely, since they reduce taxable income directly rather than flowing through the charitable deduction. For charitably inclined IRA owners, the QCD is the most tax-efficient way to give in 2026.
Non-spouse beneficiaries: the 10-year rule
Children, grandchildren, siblings, and other non-spouse beneficiaries who inherit an IRA from someone who passed away after December 31, 2019, are generally subject to the 10-year rule: the entire account must be distributed by the end of the tenth year after the original owner’s death.
Critically, under IRS final regulations that became effective in 2025, if the original IRA owner had already begun taking RMDs before their death, non-spouse beneficiaries must take annual RMDs during years 1–9 of the 10-year period—not simply distribute everything in year 10. Failing to take these annual distributions triggers a 25% excise tax, reduced to 10% if corrected within two years.
This rule compresses distributions and taxes into a shorter timeframe. A child or grandchild inheriting a large traditional IRA may face substantially higher annual tax bills during the distribution period, potentially being pushed into higher tax brackets. Roth inherited IRAs are not subject to income tax on distributions, but must still be fully distributed within 10 years.
Some practical advice
I plan to add guidance to my personal “Letter From Your Husband Who is Now in Heaven” to help my wife understand her options. But most surviving spouses should consult a professional advisor or tax accountant before making distribution elections—the choices are irreversible in many cases, and the tax implications can be significant. Fidelity, Vanguard, Schwab, and other custodians all have inherited IRA specialists who can walk a surviving spouse through the process at no charge.
The best time to have this conversation is before it is needed—while both spouses are alive, healthy, and clear-minded. That is the essence of “loving your widow.”