Guide
Should you do a Roth conversion to leave money to your kids?
By Secure Retirement PlannerUpdated
If your adult children inherit your IRA, most must empty it by the end of the 10th year after your death. So a Roth conversion can help them when your tax rate today is lower than the rate they will pay.
If you had already started RMDs, IRS rules issued in 2024 also make your children take yearly withdrawals in years 1 to 9. Those withdrawals often land in their highest-earning years.
An inherited Roth IRA has the same 10-year deadline. But your heirs' withdrawals are generally tax-free, and no yearly withdrawals are required. Your child can let it grow for the full 10 years.
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The short version
- Most non-spouse heirs have 10 years to empty an inherited IRA.
- If you had started RMDs, your heirs must also take a withdrawal each year.
- Inherited Roth money is generally tax-free and can stay in for the full 10 years.
- Converting helps most when your heirs are in a higher bracket than you.
- It can cost your family more if your heirs are in a lower bracket, or if you leave the IRA to charity.
What is the SECURE Act 10-year rule?
For deaths after 2019, most of your heirs who aren't your spouse can no longer stretch an inherited IRA over their own lifetime. They must empty it by December 31 of the year that holds the 10th anniversary of your death. If you die in 2026, their deadline is December 31, 2036.
Some of your heirs, called eligible designated beneficiaries, still get longer. They are your spouse, your minor child, a disabled or chronically ill person, and anyone not more than 10 years younger than you.
| Who inherits | Traditional IRA | Roth IRA |
|---|---|---|
| Spouse | Can treat it as their own IRA; RMDs on their own schedule | Can treat it as their own; no RMDs while they live |
| Your minor child | Life expectancy withdrawals until 21, then 10 years | Same timing, generally tax-free |
| Disabled, chronically ill, or not more than 10 years younger | Life expectancy withdrawals allowed | Life expectancy withdrawals allowed, generally tax-free |
| Adult child or other person | Empty by end of year 10; yearly withdrawals in years 1 to 9 if you had started RMDs | Empty by end of year 10; no yearly withdrawals required |
Do heirs have to take RMDs every year under the 10-year rule?
It depends on whether you had reached your required beginning date (your RMD start). If you had, IRS final rules published July 19, 2024 require your heir to take a yearly RMD in years 1 to 9. Then they empty the account in year 10. If you hadn't, there's no yearly minimum, only the year-10 deadline.
The IRS waived the penalty for missed yearly withdrawals in 2021 through 2024 while it finished the rules. Starting in 2025, they're required. A missed RMD can cost your heir 25% of the shortfall, or 10% if fixed in time.
The yearly minimum uses your heir's own life expectancy. If your heir is 55, the IRS divisor is 31.6. So the first minimum on a $600,000 account is about $18,987. The divisor drops by one each year after that.
Don't forget the year of death
If you die after starting RMDs and hadn't taken that year's RMD yet, your heir must take it by December 31 of that year.
Why is an inherited Roth IRA better for your kids?
Three reasons. First, your heirs' withdrawals are generally tax-free. That's true for any amount once your first Roth IRA has been open at least five years. Contributions and converted amounts come out tax-free even before that. See The 5-year rules.
Second, because you have no RMDs as a Roth IRA owner, the IRS treats you as dying before your RMD start. Your heir has no yearly minimum and can leave the money growing tax-free until year 10.
Third, Roth withdrawals don't add to your child's taxable income. Many heirs inherit in their 50s, often their highest-earning years. A large traditional IRA forced out over 10 years lands on top of their salary.
When does converting for your heirs make sense?
Compare your tax rate on the conversion with the rate your heirs would pay on the same dollars. Include state tax on both sides. If your rate is lower, converting tends to leave more for your family. If theirs is lower, leaving them the traditional IRA usually does.
The table uses the example below: a $45,000 conversion that costs the parent about $10,610 in federal tax.
| Heir's federal bracket | Heir's tax on $45,000 | Parent's tax to convert it | Who pays less |
|---|---|---|---|
| 12% | about $5,400 | about $10,610 | Heir |
| 22% | about $9,900 | about $10,610 | Heir, slightly |
| 24% | about $10,800 | about $10,610 | About even, before state tax and growth |
| 32% | about $14,400 | about $10,610 | Parent |
What if my spouse inherits first?
Your surviving spouse can treat the IRA as their own. That keeps the money on your spouse's RMD schedule. So the 10-year clock for your children starts only after the second death.
But your survivor usually files as single starting the year after the death. Single brackets are about half as wide, while RMDs on the combined IRA keep coming. That's one reason you might convert while you are both alive. See Widows and widowers.
What are the downsides of converting for your heirs?
Converting means you pay the tax now, for a benefit your family may get years from now. Be honest with yourself about these.
- You may need the money. Tax paid now is money you can't spend on care later.
- Your heirs may be in a lower bracket than you, now or by the time they inherit.
- If you plan to leave the IRA to charity, converting wastes tax. Charities pay no income tax on IRA money.
- Conversions at 63 and older can raise your Medicare premiums two years later. See Roth conversions and IRMAA.
- Tax law can change, and you can't undo a conversion.
Example: an 80-year-old widow converting for her son
Margaret is 80 and single. She gets $36,000 a year in Social Security and has a $600,000 traditional IRA. Her 2026 RMD is about $29,703 ($600,000 divided by 20.2). Her federal tax without a conversion is about $2,356.
Converting $45,000 in 2026 adds about $10,610 in federal tax, an average of 23.6%. Some of that comes from more of her Social Security becoming taxable and her senior deduction shrinking. Her MAGI stays at about $105,303, under the $109,000 single IRMAA line for 2026 premiums.
Her son is 52, married, with about $300,000 of joint taxable income, in the 24% bracket. If he inherited that $45,000 in the traditional IRA, he would owe about $10,800 in federal tax on it. State tax could come on top. As a Roth, he can leave it growing for up to 10 years and take it out tax-free.
If your children are in a higher bracket than you, converting can shift the tax to your lower rate. If they are in a lower bracket, keeping the traditional IRA may leave them more.
| Margaret keeps it traditional | Margaret converts $45,000 | |
|---|---|---|
| Margaret's 2026 federal tax | about $2,356 | about $12,966 |
| Son's federal tax on those dollars later | about $10,800 (24%) | $0 |
| Yearly withdrawals required for son | Yes, years 1 to 9 | No |
Hypothetical example using 2026 federal brackets and deductions (IRS Rev. Proc. 2025-32, Schedule 1-A), the IRS Publication 915 worksheet and 2026 IRMAA tiers. It ignores state tax, growth, and future changes to brackets. The tax is paid from her savings. Your numbers will differ.
Common questions
Does the 10-year rule apply to inherited Roth IRAs?
Yes, for most non-spouse heirs. The account must be emptied by the end of year 10, but no yearly withdrawals are required and withdrawals are generally tax-free.
Are inherited Roth IRA withdrawals taxable?
Generally not. Earnings are tax-free once the owner's first Roth IRA had been open five years. Contributions and converted amounts come out tax-free either way.
My parent died in 2022. Did I have to take yearly RMDs?
The IRS waived penalties for missed yearly withdrawals in 2021 through 2024. From 2025 on, if your parent had started RMDs, you must take one each year and still empty the account by year 10.
Can my spouse roll my IRA into their own?
Yes. A surviving spouse who is the sole beneficiary can treat the IRA as their own, or roll it into their own IRA.
Is converting at 80 too late to help my heirs?
Not necessarily. The benefit depends on your tax rate now versus your heirs' rate later, not your age. You must take your RMD before converting.
Who counts as an eligible designated beneficiary?
Your spouse, your minor child, a disabled or chronically ill person, and anyone not more than 10 years younger than you. They can take withdrawals over their life expectancy.
Should I leave my traditional IRA to charity instead?
If you plan to give to charity anyway, leaving it the traditional IRA can be tax-efficient, because a charity pays no income tax on it. Roth money may be better left to people.
Sources
Facts on this page were last checked on November 9, 2026.
- IRS Publication 590-B, Distributions from IRAs · 10-year rule, eligible designated beneficiaries, spouse options, Roth IRA beneficiary rules, Table I and Table III, 25% and 10% excise tax. Read Nov 9, 2026.
- Federal Register: Required Minimum Distributions final regulations (T.D. 10001), July 19, 2024 · Yearly RMDs in years 1 to 9 when the owner died on or after the required beginning date; majority at age 21. Read Nov 9, 2026.
- Treasury Regulation 1.408A-6, Q&A-14 (Roth IRA distributions after death) · Roth IRA owner treated as dying before the required beginning date, so no yearly minimum before year 10. Read Nov 9, 2026.
- IRS Notice 2024-35 · Penalty relief for missed 10-year-rule RMDs in 2021 to 2024; final rules apply from 2025. Read Nov 9, 2026.
- IRS Publication 915, Social Security and Equivalent Railroad Retirement Benefits · Taxable Social Security worksheet used in the example. Read Nov 9, 2026.
- IRS Rev. Proc. 2025-32 (2026 inflation adjustments) · 2026 brackets and standard deduction. Read Nov 9, 2026.
- CMS: 2026 Medicare Parts A & B premiums and deductibles · 2026 IRMAA single threshold. Read Nov 9, 2026.
Who wrote this
This guide was written and fact-checked by the Secure Retirement Planner editorial team using IRS, CMS and Social Security sources listed above. We update guides when the law or yearly limits change. How we research.