Inherited IRA: How to Withdraw $600,000 Over 10 Years

Direct answer

For this 63-year-old, equal withdrawals have the lowest estimated federal tax plus the 2026 Part B income charge used for comparison: about $250,476 at 4% account growth. Larger retirement-year withdrawals total $253,298. Waiting until year ten totals $308,798. Future premiums and other retirement income could change the order.

The numbers apply 2026 federal brackets across all ten years for comparison. They are not future tax estimates. State tax, Social Security, investment mix and other income are not included.

This article is general education, not investment, tax or Medicare advice. Withdrawal deadlines depend on the beneficiary and account. Have a CPA or enrolled agent and a fiduciary financial advisor review your inherited IRA records and retirement income before choosing a schedule.

The example household

This example follows a 63-year-old single filer who inherited a $600,000 traditional IRA from a parent. The parent had already started required withdrawals. The heir earns $110,000 and plans to retire in six years.

The 6% return case tests a higher assumed gain. It does not mean the money will earn that amount. The calculation applies each year's gain before that year's withdrawal. Actual timing and losses can change the account value.

Why the 10-year deadline is not always a ten-year pause

The IRS generally requires an adult child who does not qualify for a beneficiary exception to empty an inherited traditional IRA by December 31 of the tenth year after the parent's death. A withdrawal usually counts as taxable income in the year received.

The parent in this example had started required minimum distributions, or RMDs. An RMD is the minimum amount an account owner or beneficiary must withdraw under federal rules. Under the IRS's final regulations, a beneficiary who does not qualify for an exception generally also takes annual minimums in years one through nine. The account still must be empty by the end of year ten.

The annual minimum uses an age-based number from the IRS Single Life Expectancy Table, the list of withdrawal factors by age. The heir is 63 in the first distribution year, 2026. For this age, the number starts at 24.5 and falls by 1.0 each year under the table's method. The prior year-end account balance divided by that number gives the minimum withdrawal.

The exact factor and deadline depend on the parent's death year, the heir's age, beneficiary status and account plan. The article assumes the owner died in 2025, so the ten-year deadline is December 31, 2035. The parent completed the required distribution for the year of death. A custodian or CPA should confirm those details before a withdrawal schedule is set.

The IRS gave transition relief for certain missed beneficiary RMDs in 2021 through 2024 while final rules were pending. The final regulations apply to distribution years beginning in 2025. This example starts in 2026, so it does not use that temporary relief or assume a missed minimum.

Three schedules, two return assumptions

The first schedule withdraws the same amount at each year-end, enough to reach a zero balance in year ten under the selected return assumption. In the 4% case, that amount is about $73,975 a year. The model credits growth before each year-end withdrawal. Every annual minimum is met.

The second schedule takes only the annual minimums in years one through nine. It then empties the remaining balance in year ten. This avoids large withdrawals while the heir earns wages, but leaves a large taxable final-year distribution.

The third schedule takes only required minimums during the six work years. It then takes level larger distributions during the four retirement years, clearing the account by year ten. The example assumes no wages, Social Security, pension or other taxable income after retirement. If benefits begin, the best schedule may change.

The table shows the 4% return case. The federal tax column includes salary and IRA withdrawals for working years. The incremental tax column subtracts the federal tax on salary alone in working years. For retired years, the incremental and total tax are the same under the no-other-income assumption.

Equal withdrawals at 4%

Minimums, then wait until year ten at 4%

Minimums while working, then larger retirement-year withdrawals at 4%

The model's 4% totals are $227,105 in federal tax for equal withdrawals, $298,570 for minimums followed by a year-ten lump sum, and $238,201 for larger retirement-year withdrawals. Added tax from IRA withdrawals is $134,885, $206,350 and $145,981, respectively. The year-ten tax spike is the cost of waiting, not a tax penalty.

The same calculation at 6% investment growth leaves a larger balance to distribute. The total federal tax is about $244,612 for equal withdrawals, $347,371 for minimums then a lump sum, and $267,990 for retirement-year withdrawals. Those totals use 2026 tax brackets in every year and assume no other income after retirement. They are not forecasts: federal brackets can change before 2035, and annual inflation adjustments can change how much income falls in each bracket.

In the 4% tables, the top federal bracket is 24% in 2026 through 2031 for all three schedules. It falls to 22% in the equal-withdrawal schedule after retirement. The wait-until-year-ten schedule falls to 12% in 2032 through 2034, then reaches 35% in 2035. The retirement-heavy schedule stays in the 24% bracket in this calculation. The separate Medicare table shows the 2026 Part B income-charge comparison.

All schedules withdraw more than the original $600,000 over ten years because the account grows before withdrawals. The 6% assumption creates more taxable dollars. It does not promise better after-tax wealth; the heir also accepts investment risk.

How a 2026 Part B comparison changes totals

The comparison applies the 2026 Part B income-charge schedule to each tax year's income. Social Security generally uses income from two years earlier, so a 2026 return can affect a 2028 premium year. The calculation holds today's income charges constant for eight future premium years. This is a comparison, not a future premium quote. It excludes Part D charges and tax effects from changing premiums.

The equal schedule wins this comparison at both return assumptions. Future premiums, a different age, a spouse, Part D costs, Social Security or pension income could change the result. Ask a CPA and Social Security to check the actual dates and income.

Medicare premiums can follow the tax return

Medicare generally uses tax information from two years earlier to set income-related premiums. If the heir is 63 in 2026, the 2026 tax return can affect 2028 premiums at age 65. The 2027 return can affect 2029 premiums.

CMS's 2026 Part B schedule for a single filer starts its first surcharge above $109,000 of modified adjusted gross income. The example's $110,000 wage alone is already over that current threshold. At 4% growth, the equal schedule's first-year wages and withdrawal total about $184,000, which falls in the 2026 tier with a $527.50 monthly Part B premium. The minimum-only and retirement-heavy schedules land in the $284.10 tier for that year under the same 2026 table.

Those premiums are not a prediction for 2028. The income thresholds and premiums can change before the heir enrolls. The table uses the 2026 schedule to show how a large distribution can cross a Medicare line. It lists the full modeled MAGI, not a future Medicare bill.

If work ends or income falls, Social Security may allow a request for a new Medicare premium decision after a qualifying life event. Ask Social Security how retirement affects the lookback. Keep the tax return and evidence of the income change.

What would change the answer?

The first change is retirement income. This example assumes no wages, pension, Social Security or taxable investment income after 2031. If the heir receives $40,000 of pension and Social Security starting in 2032, a $159,685 withdrawal no longer sits alone in the 24% bracket. It is added to those benefits and can trigger more tax and higher Medicare premiums.

The second change is the account's return. At 6% rather than 4%, the 4% table's schedules distribute more money in total. The year-ten-only path grows the most before its final distribution. A market loss instead of a positive return can lower the balance, but it will not remove the deadline or required minimums.

The third change is the heir's actual tax status. A joint filer, a state with income tax, a charitable gift, itemized deductions or a different inheritance year changes the bracket calculation. In this example, the return model uses a single filer in Florida and the IRS's 2026 standard deduction. It applies those brackets unchanged through 2035 only to compare the schedules.

There is no single withdrawal amount that minimizes tax for everyone. In this example, the 4% retirement-heavy plan has about $11,100 more total federal tax than equal withdrawals, but about $60,400 less than waiting until year ten. A CPA should replace the fixed 2026 brackets and no-other-income assumptions before choosing a schedule.

Common mistakes that can cost money

Waiting until year ten without checking annual required minimum distributions (RMDs). For this beneficiary, who is not the spouse, the first required amount is about $24,490. If missed, the shortfall may face an excise tax. At 25%, missing the full amount could mean about $6,122 before any correction or waiver. The exact penalty uses the missed amount and the household's facts.

Treating the 2024 transition relief as permanent. The IRS relief applied to specified distributions through 2024 while the final regulations were pending. This example begins in 2026. Skipping a 2026 minimum because earlier years had relief could expose the heir to a penalty.

Taking the final balance in one year without estimating tax. The 4% wait schedule's 2035 distribution is about $572,125. In the model, it creates about $163,378 of federal income tax for that year. The distribution can also push Medicare premiums higher two years later.

Using today's salary as the only income input. The first six years include $110,000 of wages. After retirement, a pension or Social Security can fill the lower bracket. Each additional $10,000 of taxable income may use bracket room the IRA withdrawal otherwise could fill.

Assuming every IRA transfer is tax-free. A direct custodian-to-custodian transfer into a properly titled inherited IRA can preserve the account's tax treatment. A check payable to the beneficiary or a deposit into their own IRA can create a tax or eligibility problem. Ask the custodian before moving the account.

A dated action list

Within two weeks: Ask the custodian for the date-of-death value, current balance, parent's year-of-death RMD, original beneficiary form and exact ten-year deadline. Ask which years require beneficiary RMDs.

Within 30 days: Ask a CPA to calculate the heir's first required minimum distribution from the actual balance and IRS factor. Set a calendar reminder at least 60 days before the payment deadline.

Before the next tax estimate: Give the CPA the $110,000 wage estimate, planned retirement date, withholding, deductions, credits, state and expected investment income. Request federal tax projections for all three schedules.

Before age 65: Compare the 2026 income with the two-year Medicare lookback. Ask Social Security how a planned retirement or other qualifying life event can change an income-related premium determination.

Each January: Recheck the prior December 31 balance, annual RMD factor, remaining account, work status and expected income. Update the schedule before taking elective withdrawals.

By September of year ten: Confirm the account's remaining value and arrange the full distribution before the December 31 deadline. Leave time for the custodian's processing and tax withholding.

When to talk to a professional

Talk to a CPA or enrolled agent familiar with inherited retirement accounts before choosing a schedule. Bring the parent's date of death, account statements, beneficiary records, prior RMD notices, your last two tax returns, current pay statements and expected retirement benefits. Ask for an annual RMD calendar, tax projection and Medicare-income estimate.

Ask the IRA custodian to confirm the account is titled as an inherited IRA and whether the parent completed the year-of-death RMD. Bring the beneficiary paperwork and ask for written withdrawal deadlines. A custodian can explain its process, but it does not replace individualized tax advice.

Sources

• IRS, Publication 590-B, 2025, accessed October 26, 2026. Covers inherited IRA 10-year deadlines, annual RMDs, life-expectancy factors and excise tax rules.
• IRS, Final RMD regulations, T.D. 10001, published July 19, 2024; applicable to distribution years beginning January 1, 2025. Keeps annual beneficiary distributions when the owner died after the required beginning date, alongside the 10-year deadline.
• IRS, Notice 2024-35, April 16, 2024. Provides transition relief for specified missed beneficiary distributions in 2024 and says final regulations apply from 2025.
• IRS, 2026 federal tax brackets and inflation adjustments, Revenue Procedure 2025-32, published October 2025. Single standard deduction is $16,100 and brackets are used by the existing tested tax calculator.
• IRS, Inherited IRA RMD calculator logic, Pub. 590-B Table I, 2025 edition. The adjacent SwitchWize calculation reuses computeInheritedIraRmd from src/lib/calculators/inherited-ira-rmd.ts.
• CMS, 2026 Part B premium rates, 2026. Single-filer thresholds begin above $109,000; this year's premiums are used only as a comparison, not a future projection.
• Social Security Administration, Medicare premiums: rules for higher-income beneficiaries, accessed October 26, 2026. Describes income-related monthly adjustment amounts and life-changing-event requests.
• SwitchWize calculation, inherited-ira-ten-year-withdrawal-schedule-lowest-tax.ts. Uses the existing tested federal bracket and RMD modules. It assumes a $600,000 account, $110,000 wages for six years, age 63, single Florida filer, 4%/6% returns and no other income. Future tax brackets are frozen at 2026 levels.