An IRA is often one of the larger things a person leaves behind — and one of the most misunderstood when it comes to who inherits it. The document most families assume settles everything, the will, frequently has nothing to say about it. The account follows a separate piece of paper entirely.
Where your IRA lives — and who decides who gets it
The beneficiary form beats the will
Most IRAs pay out based on the beneficiary designation on file with the custodian — the firm that holds the account. That designation generally controls who inherits, and in most cases it overrides whatever a will says. Because of this, it is worth confirming each beneficiary form is current, especially after a marriage, divorce, or new child, and checking the details with the custodian. The same pattern shows up in workplace retirement accounts; we cover those in the guide on 401(k)s, pensions, and stock plans.
What happens with no beneficiary named
When no beneficiary is named — or the named one has died — the IRA generally passes to the surviving spouse or to the estate, depending on the custodian's default rules. An IRA that lands in the estate can mean probate, the court process for settling what a will leaves behind. Probate and creditor questions can vary by state and situation; the mechanics here describe only how the beneficiary designation itself generally works.
Recording an IRA in Trust Relay
Trust Relay is built for exactly the gap above: making sure the people you love know where to look. For an IRA, that means recording which custodian holds it and noting that a beneficiary is named on file — the two facts a family needs to start a claim.
It does not mean recording account numbers, balances, or logins. Trust Relay keeps a quiet map of where your accounts live, not the keys to them. The custodian verifies who is entitled and handles the rest; your family simply needs to know which door to knock on.
With an IRA, the form on file is the final word — more than any letter, more than the will.
How a beneficiary finds the IRA
Statements and Form 5498
A beneficiary can usually locate an IRA through the paper trail the custodian leaves. Annual account statements point to where the account lives, and so does IRS Form 5498, which the custodian files each year to report the account. Between the two, the firm holding the money is generally identifiable — and that firm is who a family ultimately has to reach.
Why the DOL “Lost and Found” won’t help
The U.S. Department of Labor runs a Retirement Savings Lost and Found database, and it is a genuinely useful tool — but not for IRAs. It covers only employer and union plans, so it will not surface an IRA at all. It is worth knowing about for workplace accounts; we cover it in the guide on 401(k)s, pensions, and stock plans.
What inheriting an IRA looks like (as of 2026)
The rules for inheriting an IRA changed meaningfully in recent years, and they remain detailed. What follows is a plain-language sketch, as of 2026 — it is the kind of thing to confirm with the custodian or a tax professional, because the specifics shift over time.
The 10-year rule
For owners who died in 2020 or later, most non-spouse beneficiaries must empty the inherited IRA by December 31 of the 10th year after the death. This is the SECURE Act’s “10-year rule.” It replaced the older approach — sometimes called the “stretch IRA” — that let many beneficiaries draw an account down slowly over a lifetime. That older treatment is no longer how most inherited IRAs work.
Eligible designated beneficiaries
Some beneficiaries get gentler treatment than the standard 10-year rule. These “eligible designated beneficiaries” generally include a surviving spouse, the owner’s minor child, a disabled or chronically ill person, and someone not more than 10 years younger than the owner. Whether a particular person qualifies is specific enough that it is worth confirming with the custodian or a tax professional.
The annual-withdrawal wrinkle since 2025
As of 2026, under IRS final regulations effective from 2025, a beneficiary subject to the 10-year rule must also take a withdrawal in years 1 through 9 — but only if the original owner had already begun required minimum distributions before death. If the owner died before reaching that point, the beneficiary can generally wait and simply empty the account by year 10. This is a moving, time-dated detail, and the tax treatment depends on the individual; confirm what applies with the custodian or a tax professional.
A note on getting professional help
Inheriting an IRA touches deadlines, withdrawals, and taxes that turn on the particular people and dates involved — and the rules are still settling. A beneficiary need not memorize any of it. The practical move is to find the custodian, then let a tax professional or qualified advisor confirm the current rules for the specific situation. What a family most needs to know in advance is simply which custodian to call — and that is the part you can record now.
Common questions
Does my will control who gets my IRA?
Generally, no. An IRA usually passes according to the beneficiary designation on file with the custodian, and that designation typically controls who inherits even if the will says something different. If no beneficiary is named, the IRA generally goes to the spouse or to the estate, which can mean probate. It is worth confirming each beneficiary form is current with the custodian, especially after a marriage, divorce, or new child.
What is the 10-year rule for an inherited IRA?
As of 2026, for owners who died in 2020 or later, most non-spouse beneficiaries must empty the inherited IRA by December 31 of the 10th year after the death — the SECURE Act’s 10-year rule. Some beneficiaries get gentler treatment. Because these rules are detailed and can change, confirm the current rules with the custodian or a tax professional.
Do I have to take money out every year, or can I wait until year 10?
As of 2026, under IRS final regulations effective from 2025, a beneficiary subject to the 10-year rule must also take a withdrawal in years 1 through 9 if the original owner had already begun required minimum distributions before death. If the owner died before that point, the beneficiary can generally wait and simply empty the account by year 10. This is a detailed, time-dated area — confirm what applies with the custodian or a tax professional.
How do I find an IRA a relative had?
Look for the custodian — the firm that held the account. Annual account statements and IRS Form 5498, which the custodian files each year, both point to where an IRA lives. Note that the Department of Labor’s Retirement Savings Lost and Found does not cover IRAs; it is only for employer and union plans. Once you identify the custodian, contact them to begin a claim.
Who counts as an “eligible designated beneficiary”?
As of 2026, eligible designated beneficiaries generally include a surviving spouse, the owner’s minor child, a disabled or chronically ill person, and someone not more than 10 years younger than the owner. These beneficiaries generally receive gentler treatment than the standard 10-year rule. Because the categories are specific, confirm whether one applies with the custodian or a tax professional.
Recording this now is the easy part
Almost everything above gets simpler if the people you love already know where to look — which custodian holds the account, and that a beneficiary is named. That is the whole idea behind Trust Relay: a quiet, private map of where your accounts live, kept ready, so your family isn’t left doing forensic detective work later.