It depends. It must be emptied by the 10th year and the chart in the link below will give a more detailed answer based on your specific circumstances.
In 2020 and later, options for a beneficiary who is not the spouse of the deceased account owner depend on whether they are an "eligible designated beneficiary." An eligible designated beneficiary is
- Spouse or minor child of the deceased account holder
- Disabled or chronically ill individual
- Individual who is not more than 10 years younger than the IRA owner or plan participant
An eligible designated beneficiary may
- Take distributions over the longer of their own life expectancy and the employee's remaining life expectancy, or
- Follow the 10-year rule (if the account owner died before that owner's required beginning date)
10-year rule: If a beneficiary is subject to the 10-year rule,
- Empty the entire account by the end of the 10th year following the year of the account owner's (or eligible designated beneficiary's) death
- Relief under Notice 2022-53 for beneficiaries subject to the 10-year rule
- The IRS will not treat a beneficiary of an inherited account in a plan or IRA who was subject to the 10-year rule and who failed to take an RMD for 2021 and 2022 as having failed to take the correct RMD
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