The inherited IRA 10-year rule is a deadline for distributing an account, not simply selling its investments. For a beneficiary subject to the rule, the remaining balance must leave the IRA by December 31 of the tenth year following the owner’s death. Some beneficiaries also have annual required minimum distributions, or RMDs, before then.
A decade might seem like plenty of time, but the best way to begin is by answering two key questions: what requires your attention right now, and what must be completed before the 10-year window closes?
Please note that this guide specifically addresses inheriting a precious metals IRA from an original owner who passed away in 2020 or later; it does not cover complex scenarios involving trusts, estates, or secondary beneficiaries.
Who Has to Follow the 10-Year Rule?
An individual named to inherit the account is a designated beneficiary. Under IRS Publication 590-B, a designated beneficiary who is not an eligible designated beneficiary generally follows the ten-year rule. An adult child will often fall into this category, but being a non-spouse is not enough on its own to determine the schedule.
Inherited IRA 10-Year Rule Exceptions
Based on status at the owner’s death, these eligible designated beneficiaries may qualify for life-expectancy distributions or other options:
- The owner’s surviving spouse.
- The owner’s minor child, not simply any minor named as beneficiary.
- An individual who meets the applicable disability or chronic-illness requirements.
- An individual who is not more than ten years younger than the owner, including someone older.
Under the final IRS regulations, the minor-child category generally ends at age 21, triggering a ten-year period unless another qualifying status applies. A spouse may have additional options. Eligibility does not remove every distribution obligation.
When Does the Ten-Year Period End?
Count from the year of the original owner’s death, not when the beneficiary paperwork is completed. The IRS ten-year rule requires full distribution by December 31 of the year containing the tenth anniversary. Opening a replacement inherited account does not restart that clock.
To illustrate how current regulations work: if the account owner passes away in 2026 and the ten-year rule applies, the countdown begins in 2027, making the absolute final deadline December 31, 2036. Keep in mind that this is simply to show how the timeline is calculated, not advice on when you should actually take distributions.
There may also be a separate obligation for the year of death: any RMD the owner was required to take but had not completed. Confirm that amount with the custodian rather than folding it into the beneficiary’s later schedule.
Do You Have to Take RMDs Every Year?
The table below applies to an individual designated beneficiary who is not an eligible designated beneficiary, where the original owner died in 2020 or later. The IRS distribution regulations distinguish deaths before the required beginning date from deaths on or after it.
| Account and owner’s status | Years 1–9 | End of year 10 |
|---|---|---|
| Traditional IRA: owner died before the required beginning date | No annual RMDs under this ten-year schedule. | Distribute the entire remaining balance. |
| Traditional IRA: owner died on or after the required beginning date | Annual RMDs generally apply. | Distribute the entire remaining balance, not just an annual minimum. |
| Roth IRA: beneficiary is subject to this ten-year schedule | No annual RMDs under this schedule. | Distribute the entire remaining balance. |
The required beginning date is a legal date, not simply an age or the date withdrawals first started. Publication 590-B generally places it on April 1 following the year the owner reaches the applicable RMD age. Ask the custodian to confirm the actual date. The IRS treats a deceased Roth IRA owner as having died before that date for beneficiary distribution rules.
Older guidance needs care. Fidelity’s inherited IRA guidance explains that relief for certain missed annual RMDs in 2021–2024 did not extend the ten-year period. Affected beneficiaries had to comply with annual RMD requirements beginning in 2025; that was not a new year one.
Document both the ultimate deadline and this year’s specific obligations together. Just writing down “ten years” is too vague and won’t provide enough context if someone else has to step in and help manage the account later.
How Is an Annual RMD Calculated?
An RMD is a dollar amount, not a requirement to sell one-tenth of the coins every year. The IRS RMD FAQs describe the general calculation: divide the prior December 31 account balance by the applicable life-expectancy factor. The factor and subsequent adjustments depend on the beneficiary’s circumstances.
For a metals account, ask which year-end valuation was used and what amount remains to be distributed after withdrawals already completed. Meeting an annual minimum does not replace the final requirement to distribute the entire balance. Nor does taking extra one year automatically satisfy a later year’s RMD.
Does an Inherited Roth IRA Follow the Same Rule?
An inherited Roth IRA can still be subject to the ten-year deadline, even though the original Roth owner had no lifetime RMDs. The no-annual-RMD treatment in the table is specific to that ten-year schedule; other beneficiary arrangements can require life-expectancy payments.
Distribution timing and tax treatment are separate. IRS Publication 559 explains that a post-death Roth distribution is qualified when the owner’s applicable five-tax-year period has been satisfied. Qualified distributions are generally free of federal income tax. If the period has not been met, earnings may be taxable. The five-tax-year test does not replace or extend the ten-year deadline.
For an inherited traditional IRA, taxable withdrawals generally count as ordinary income. Records of nondeductible contributions can affect the taxable portion. Complying with the deadline does not make a traditional IRA withdrawal tax-free, and the tax result should not be assumed to match personally owned inherited gold.
How Do Physical Metals Count Toward a Distribution?
Inherited IRA distribution rules concern assets leaving the account. With metals, a sale and a withdrawal are separate instructions. IRS Topic 451 explains that amounts in a traditional IRA, including earnings, generally are not taxed until distributed. Selling gold inside the IRA and leaving the proceeds there does not, by itself, satisfy a distribution requirement.
Cash or an In-Kind Distribution
A beneficiary may request a cash distribution or ask whether specific coins or bars can be distributed in kind. GoldStar Trust’s forms, for example, separate precious metals sale directions from distribution requests. This illustrates one custodian’s process, not a promise about every provider or the options in a particular account.
For an in-kind distribution, the IRS Form 1099-R instructions require reporting the property’s fair market value on the distribution date. Ask the custodian how it determines that value and credits the distribution toward the required amount. A previous purchase price, a dealer’s offer, and a reporting valuation are not interchangeable.
The custody requirement continues while the metals remain IRA assets. An authorized distribution is different from taking IRA-owned metals home and continuing to count them inside the account. Orion’s precious metals IRA overview explains the account’s custody and transaction arrangements.
Before you sign anything, ask the representative to explain the transaction in simple terms. Have them clarify exactly which assets are being transferred, their destination, and the type of receipt you’ll get. A clear summary is much easier to verify than a complicated form that might be misinterpreted.
What Happens if a Required Distribution Is Missed?
The instructions for Form 5329 describe an excise tax generally equal to 25% of the amount not distributed as required. It is based on the shortfall, not automatically the entire inherited account. The rate may be reduced to 10% when the correction and filing conditions are met within the applicable correction window.
The IRS may also waive some or all of the tax for reasonable error when reasonable steps are being taken to remedy the shortfall. Relief is not automatic. A beneficiary who identifies a missed annual amount or final deadline should promptly ask the custodian and a qualified tax professional about correction, reporting, and any available relief.
Keep a Practical Distribution Record
For each year, keep the account statement and a short record of the points to confirm with the custodian:
- Whether an annual RMD applies, the calculation used, and any amount still outstanding.
- Whether the request is for cash, metals in kind, or both, and how the distribution will be valued.
- The paperwork and processing dates, plus any transaction, delivery, storage, or account-closing charges.
- The completed distribution confirmation and, in the final year, confirmation that no balance remains.
Written requests and final receipts do two different things, so make sure to hold on to both. Before you mark a task as complete, compare the final confirmation against your original instructions and speak up about any discrepancies.
Inherited IRA 10-Year Rule FAQs
Does an Inherited IRA Have to Be Liquidated in Ten Years?
When the rule applies, the remaining account balance must be fully distributed by the deadline. That does not necessarily mean selling every coin for cash. An authorized in-kind distribution may be available; a sale with cash left inside the IRA is not enough.
Who Is Exempt From the 10-Year Rule When Inheriting an IRA?
Eligible designated beneficiaries may qualify for different schedules. These include a surviving spouse, the owner’s minor child, qualifying disabled or chronically ill individuals, and people not more than ten years younger than the owner. Eligibility does not remove every distribution obligation.
What Is the 10-Year Rule Mistake for Inherited IRAs?
One mistake is assuming the final deadline means nothing is due earlier. A beneficiary subject to the rule may also owe annual RMDs when a traditional IRA owner died on or after the required beginning date. Another is selling the metals without distributing the proceeds.
How Many Times Can You Withdraw From an Inherited IRA?
IRS Publication 590-B allows an annual RMD to be taken in installments. The total must meet that year’s requirement by its deadline. Confirm the custodian’s procedures and charges; the ten-year rule does not require ten equal withdrawals.
How Orion Can Help
Orion Metal Exchange’s in-house IRA department can explain its precious metals services and coordinate transactions with custodians and depositories. Contact Orion to discuss the metals-related assistance available for an existing account. The custodian handles distribution processing; qualified tax and legal professionals should review the beneficiary’s obligations and personal decisions.
Have your most recent account statement and a list of unanswered questions ready. The goal of this discussion is to walk away knowing exactly what happens next and who is in charge of getting it done.
Important Disclosure
This article is for educational and informational purposes only. It does not constitute tax, legal, accounting, financial, investment, or trading advice, or a recommendation to buy, sell, or hold any precious metal or other product. Orion Metal Exchange does not provide financial or tax advice.
Precious metals can fluctuate significantly in value and can be volatile. Past performance does not guarantee future results. IRA and tax rules can change and vary with individual circumstances. Consult qualified financial and legal professionals as appropriate. Consult your tax advisor regarding your individual circumstances.
