Beneficiary IRA Stretch Calculator
Compare inherited IRA distribution strategies under the SECURE Act 10-year rule. Model tax impact of different distribution timings to find the optimal approach for your inherited IRA.
Inherited Account Details
Beneficiary Type
Distribution Strategy
Tax Information
Tax Efficiency Score
Moderate tax efficiency. Consider adjusting your strategy to keep more of your distributions.
After-Tax Total
$452,782
Distribution Window
10 years
Total Taxes
$184,937
Rule
SECURE Act 10-Year Rule
Total Distributed
$637,719
Over 10 years
After-Tax Total
$452,782
From $500,000 inherited
Total Taxes
$184,937
24% fed + 5% state
Avg Annual Distribution
$63,772
Peak: $67,934
Distribution Breakdown
After-tax income vs. federal and state taxes
Total
$637,719
After-Tax Income
71%$452,782/yr
Federal Taxes
24%$153,052/yr
State Taxes
5%$31,885/yr
Account Balance Over Time
Projected inherited IRA balance as distributions are taken
Annual Distributions
After-tax income and tax breakdown by year
Strategy Comparison
After-tax total and tax burden by distribution strategy
Strategy Comparison Detail
Side-by-side comparison of all distribution strategies (* = optimal)
| Strategy | Total Distributed | Total Taxes | After-Tax Total | Peak Year |
|---|---|---|---|---|
| Equal Annual Distributions | $637,719 | $184,937 | $452,782 | $67,934 |
| Back-Loaded (Year 10 Lump Sum) * | $851,867 | $247,041 | $604,826 | $746,558 |
| Front-Loaded (Take More Early) | $609,541 | $176,768 | $432,773 | $151,515 |
| RMD-Only (Minimum Required) | $837,306 | $242,819 | $594,487 | $692,941 |
Year-by-Year Distribution Schedule
Equal Annual Distributions - 10-year distribution window
| Year | Age | Start Balance | Distribution | Taxes | After Tax | End Balance |
|---|---|---|---|---|---|---|
| 1 | 46 | $500,000 | $67,934 | $19,701 | $48,233 | $457,990 |
| 2 | 47 | $457,990 | $67,335 | $19,527 | $47,808 | $414,095 |
| 3 | 48 | $414,095 | $66,684 | $19,338 | $47,346 | $368,255 |
| 4 | 49 | $368,255 | $65,967 | $19,131 | $46,837 | $320,425 |
| 5 | 50 | $320,425 | $65,162 | $18,897 | $46,265 | $270,578 |
| 6 | 51 | $270,578 | $64,234 | $18,628 | $45,606 | $218,725 |
| 7 | 52 | $218,725 | $63,122 | $18,305 | $44,817 | $164,939 |
| 8 | 53 | $164,939 | $61,705 | $17,895 | $43,811 | $109,428 |
| 9 | 54 | $109,428 | $59,686 | $17,309 | $42,377 | $52,726 |
| 10 | 55 | $52,726 | $55,890 | $16,208 | $39,682 | $0 |
Personalized Insights
Actionable recommendations based on your numbers
Distribution Rule: SECURE Act 10-Year Rule
Under the SECURE Act, non-spouse beneficiaries must fully distribute inherited IRA assets within 10 years of the original owner's death. Annual RMDs may also be required.
Optimal Strategy Available
The "Back-Loaded (Year 10 Lump Sum)" strategy yields $152,044 more in after-tax income compared to your selected strategy. Consider switching for better tax efficiency.
Significant Tax Burden
Your total tax liability of $184,937 represents 29% of total distributions. Consider strategies to reduce taxable income in high-distribution years.
Growth During Distribution Period
The inherited IRA is projected to grow by $137,719 during the 10-year distribution period at a 6% annual return.
SECURE Act 10-Year Rule
Prior to the SECURE Act (2020), non-spouse beneficiaries could stretch distributions over their lifetime. The 10-year rule significantly accelerates the distribution timeline and increases the annual tax impact.
Missed Distribution Penalty
The penalty for failing to take a required distribution is 25% of the shortfall (reduced from 50%). This drops to 10% if corrected within 2 years under the SECURE 2.0 Act.