Which beneficiaries are eligible for life-expectancy stretch distributions under 2026 rules?
Executive summary
Under the post‑2019 SECURE Act framework, only certain “Eligible Designated Beneficiaries” (EDBs) may still take life‑expectancy (“stretch”) distributions instead of being forced onto the 10‑year rule; EDBs include the decedent’s surviving spouse, a minor child (until majority), an individual not more than 10 years younger than the decedent, and beneficiaries who are disabled or chronically ill [1] [2]. The IRS Publication 590‑B and agency guidance explain how those EDBs use the Single Life Expectancy Table (or spouse‑specific recalculation rules) to calculate annual RMDs [3] [4].
1. Who still gets to “stretch”: the list that matters
Congress’s 2019 SECURE Act created a narrow category—Eligible Designated Beneficiaries—who retain the pre‑2020 ability to take RMDs over their remaining life expectancy rather than emptying the account by year ten; IRS and industry guides list the EDB categories as the surviving spouse, a minor child (only until reaching majority), individuals who are not more than 10 years younger than the decedent, and beneficiaries who are disabled or chronically ill [1] [2]. Multiple sources confirm that the broad class of non‑EDBs (often called designated beneficiaries subject to the 10‑year rule) cannot use the life‑expectancy stretch and instead must satisfy the 10‑year distribution rule [1] [2].
2. How the stretch is calculated: tables and the spouse exception
When a beneficiary is eligible to stretch, the Annual Required Minimum Distribution is calculated using life‑expectancy tables—generally the Single Life Expectancy Table for individual beneficiaries—found in IRS Publication 590‑B and the Retirement Topics RMD pages; a surviving spouse who is the sole beneficiary and more than 10 years younger can instead use a Joint Life and Last Survivor table and has a special “recalculation” rule each year [3] [5]. Publication 590‑B explicitly addresses redetermination and which table applies in the year of the owner’s death, and IRS guidance reiterates that the Uniform Lifetime Table is for owners while beneficiaries typically use the Single Life table [3] [6].
3. Timing rules and practical consequences for beneficiaries
Beneficiaries who elect or qualify for life‑expectancy payments must begin distributions within the timeframes set by the plan or IRA rules—many providers expect payments to start within one year of death—and the amount is based on the account’s December 31 fair market value divided by the applicable life‑expectancy denominator [7] [8]. Industry pieces note the operational burden: beneficiaries are responsible for knowing and taking the correct payments each year and financial firms often only assist rather than report to the IRS on timing [8] [7].
4. Multiple beneficiaries and account separation: who uses whose life table
If multiple individual beneficiaries share an inherited account and haven’t segregated assets by December 31 of the year following death, RMDs are often calculated using the oldest beneficiary’s life expectancy; if accounts are split, each individual may use their own remaining life expectancy [2]. Publication 590‑B also explains that if the original owner died on or after the required beginning date, the owner’s final year RMD rules and the applicable table (often Uniform Lifetime) affect calculations for the year of death [3].
5. Where ambiguity and operational risk remain
Available sources do not mention any post‑2025 statutory changes that further expand or contract EDB eligibility beyond SECURE Act 2019 and the established IRS guidance; industry updates and plan terms can vary, creating room for differing interpretations by custodians and advisers (not found in current reporting). Several providers and trust advisers warn that practical issues—failure to separate accounts, incorrectly applied tables, or missing annual withdrawals—can trigger penalties, and beneficiaries should confirm custodian procedures and tax reporting [2] [8].
6. Bottom line and actions for beneficiaries
If you believe you qualify as an Eligible Designated Beneficiary—spouse, minor child (until majority), disabled or chronically ill person, or someone within ten years of the decedent’s age—you remain eligible to take annual life‑expectancy RMDs using the Single Life table (or spouse recalculation rules) instead of being forced into the 10‑year rule [1] [3]. Confirm your status with the account custodian, request account segregation if multiple beneficiaries exist, and consult Publication 590‑B and your tax advisor to apply the correct table and avoid missed‑RMD penalties [3] [2].