Are surviving spouses or eligible disabled beneficiaries exempt from the 10-year rule under the 2026 changes?
Executive summary
Surviving spouses and certain disabled beneficiaries are treated as “eligible designated beneficiaries” (EDBs) and, under the post‑SECURE rules and subsequent IRS guidance, are not strictly subject to the blanket 10‑year cleanout rule that applies to most non‑spouse heirs [1] [2]. However, that exemption is conditional: EDBs have different distribution options and timing obligations, and recent final regulations and guidance impose important limits and plan‑level variations that can change outcomes in practice [3] [4].
1. The headline: EDBs (including surviving spouses and disabled beneficiaries) are generally exempt from the 10‑year rule
The SECURE Act and later guidance define a class of beneficiaries called eligible designated beneficiaries — which explicitly includes surviving spouses and disabled individuals — who are not automatically forced into the simple 10‑year “clean‑out” timetable that applies to most non‑spouse beneficiaries [1] [2]. Multiple tax publications and major custodians summarize that EDBs may still “stretch” distributions using life‑expectancy rules rather than having to empty an inherited IRA by the tenth year after the owner’s death [5] [6].
2. Surviving spouses have special, flexible options but important caveats
A surviving spouse can elect to treat the inherited account as their own (a rollover) or remain an inherited‑account beneficiary and use life‑expectancy distributions, choices that provide greater flexibility than the standard 10‑year rule [7] [8]. IRS final regulations and advisory analyses make clear this spousal treatment is not a literal duplication of the decedent’s rules: a spousal election requires RMDs to be calculated on the spouse’s own life expectancy and may trigger a “hypothetical RMD” bookkeeping rule if the spouse later switches options [3] [4]. Plans also can offer different options to spouses versus other EDBs, so the plan document matters [3].
3. Disabled beneficiaries qualify as EDBs but their relief has boundaries
Disabled beneficiaries are listed among the EDB categories and therefore can generally take distributions over their life expectancy rather than being forced into the 10‑year cleanout [1] [2]. That flexibility reduces taxable spike‑income risk, but the designation hinges on the IRS definition of “disabled” used for beneficiary relief and can have documentation or timing requirements; reporting and advisory pieces note that EDB status is narrowly defined and other beneficiaries do not get the same leeway [2] [9].
4. Annual RMDs may still be required in years 1–9 in many cases
The binary notion “EDB = no annual RMDs” is misleading: if the account owner had already begun taking RMDs before death, many beneficiaries — including EDBs who elect life‑expectancy treatment — must continue taking annual RMDs during years 1–9 and only avoid the 10‑year cutoff [6] [9]. Recent IRS rules and practitioner summaries emphasize that starting‑point rules and the decedent’s RMD status at death determine whether annual distributions are required during the decade following death [3] [10].
5. Plan documents and post‑2019 timing matter — there is no one‑size‑fits‑all exemption
The post‑2019 (and post‑SECURE‑2.0) framework means whether an heir benefits from EDB status depends on when the owner died (after 2019/2020 triggers the new regime) and on plan‑level options; some plans may permit a surviving spouse broader elections while restricting others, and final regulations explicitly allow plans to treat categories differently [1] [3]. Custodial guides warn that practical relief varies by institution and that beneficiaries should confirm plan terms before assuming the same treatment everywhere [1] [6].
6. Practical and policy tensions — who benefits from complexity?
Industry write‑ups and advisory firms emphasize planning opportunities for spouses and EDBs (spousal rollovers, life‑expectancy RMDs) while also noting that tighter 10‑year rules for ordinary heirs accelerate taxable income — a result that benefits neither ordinary heirs nor the original tax‑deferral intent and that conveniently increases planning and advisory revenues for financial firms [9] [1]. Final regulations tried to close loopholes and standardize treatment but left room for plan‑level discretion and complex elections that continue to drive demand for professional advice [3] [4].
Limitations: reporting reviewed here is secondary and guidance‑oriented; specific treatment for any beneficiary depends on the exact facts, the plan document, and current IRS rules, which change over time [11] [7].