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Inheriting a retirement account can provide a significant financial cushion, but the wrong withdrawal strategy could cost beneficiaries thousands in taxes.

Most non-spouse beneficiaries must empty an inherited Individual Retirement Account (IRA) within 10 years of the original owner’s death.

The IRS also resumed enforcing penalties in 2025 for missed required annual withdrawals in applicable cases, adding another potential cost to an already complicated process.

However, some of the biggest financial losses may come from how beneficiaries manage the 10-year withdrawal window. Three strategies could help them preserve more of their inheritance, and the first decision may have a greater impact than they realize.

Also Read: Schwab’s 10% IRA default could leave retirees with a big tax bill

The 10-year rule creates a six-figure tax trap

The 2019 SECURE Act eliminated the old IRA rules allowing non-spouse beneficiaries to stretch RMDs over their own individual life expectancy, replacing those rules with a much shorter 10-year period for distributing inherited retirement account funds.

Under the rules outlined in IRS Publication 590-B, most non-spouse beneficiaries must withdraw the entire inherited IRA balance by December 31 of the 10th year following the account owner’s death.

The shortened withdrawal period can create a tax-bracket trap. A person who inherits a traditional IRA in middle age, keeps earning a steady salary, and takes only the required minimum distributions (RMDs) can be left with a six-figure balance in the final year, according to Kiplinger’s analysis.

Even spreading a $500,000 inherited IRA across 10 years of withdrawals could generate more than $120,000 in federal income taxes. In high-tax states, the combined tax bill could exceed $125,000, 24/7 Wall St. reported.

Justyn Volesko, Partner and Co-Head of Family Office at Cerity Partners, noted that the penalty for missed distributions catches many families off guard.

<strong>Missing an RMD on an inherited IRA is sometimes the biggest surprise, particularly because of the associated penalty,</strong>

Large inherited IRA withdrawals can also increase a beneficiary’s modified adjusted gross income (MAGI), potentially triggering the 3.8% net investment income tax.

This applies to taxpayers whose MAGI exceeds $200,000 for single filers or $250,000 for married couples filing jointly, according to IRS Topic 559. That levy stacks on top of ordinary income tax.

How the IRS tightened inherited IRA enforcement

Whether beneficiaries must make annual withdrawals during the 10-year window depends largely on when the original account owner died in relation to their required beginning date (RBD) for RMDs.

If the owner died on or after their RBD, the beneficiary generally must take annual RMDs in years one through nine and withdraw the remaining balance by the end of year 10, according to IRS guidance.

If the owner died before the RBD, no annual distributions are required, but the full balance must still be withdrawn by year 10. 

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The IRS confirmed these annual RMD requirements in final rules issued in July 2024 after waiving penalties from 2021 through 2024, according to the Treasury Department. Enforcement is now fully active for 2025 and 2026.

A missed distribution triggers a 25% excise tax on the shortfall, which is reduced to 10% if the beneficiary corrects it promptly and files IRS Form 5329. Before the SECURE 2.0 Act of 2022, the penalty stood at 50%.

Not everyone is subject to the standard 10-year rule. Surviving spouses, minor children of the original account owner, disabled or chronically ill beneficiaries, and individuals no more than 10 years younger than the deceased may qualify as eligible designated beneficiaries.

These individuals can generally use alternative distribution rules that allow them to stretch withdrawals over a longer period.

The IRS now enforces inherited IRA withdrawal rules, requiring beneficiaries to meet annual RMDs or face penalties and strict 10-year deadlines.Keeproll / Getty Images

Three strategies that shrink the inherited IRA tax hit

The first strategy is to spread withdrawals across the 10-year period rather than postponing most distributions until the final years. Pulling roughly equal amounts annually keeps taxable income lower and avoids higher brackets, Vanguard noted.

The second strategy is timing larger withdrawals around lower-income years, such as a gap between jobs or early years of retirement, 24/7 Wall St. stated.

Under 2026 federal tax brackets, a single filer stays at 24% up to $201,775 before crossing into 32%, according to IRS Revenue Procedure 2025-32.

Taking larger distributions during lower-income years could therefore reduce the overall tax burden, particularly when beneficiaries can avoid crossing into a higher marginal tax bracket.

The third strategy involves the original IRA owner rather than the beneficiary. Converting a traditional IRA into a Roth IRA during the owner’s lifetime can shift the tax liability to a generation that may be in a lower tax bracket. It also allows beneficiaries to inherit an account with tax-free qualified withdrawals, Fidelity explained.

Inherited Roth IRAs are still subject to the 10-year rule, but qualified withdrawals are tax-free, and there is no annual RMD requirement, IRS confirmed. 

The potential savings are greatest when the original account owner pays a lower tax rate on the conversion than the beneficiary would face when withdrawing the inherited traditional IRA, Fidelity added.

What inherited IRA beneficiaries should do before year-end

Beneficiaries who already hold an inherited IRA should model a distribution schedule that minimizes income tax exposure across the full 10-year window rather than defaulting to annual minimums, Mercer Advisors recommended.

The firm also suggested working with both a financial adviser and a certified public accountant to develop a distribution strategy that accounts for income, tax brackets, and other financial obligations.

IRA owners considering Roth conversions should evaluate partial conversions across several tax years because filling the current bracket each year avoids a rate spike while reducing the taxable balance heirs must withdraw, Q3 Advisors noted.

Coordinating conversions with the owner’s retirement date or a lower-income year widens the window before the account reaches the next generation.

For beneficiaries approaching a December 31 withdrawal deadline, the first step should be confirming whether the original account owner had reached their required beginning date for RMDs. That detail determines whether annual withdrawals are required during the 10-year period, 24/7 Wall St. explained.

From there, mapping out projected income and tax brackets for each year can help beneficiaries identify the most tax-efficient withdrawal schedule and avoid leaving a potentially costly balance until the final year.

Related: IRS shields inheritance, but heirs in 5 states should watch out

Kirkland’s Home is preparing to close more stores, extending a difficult year for the home decor retailer as its parent company works to improve profitability. The latest round of shutdowns will leave shoppers in several communities with fewer nearby options for home furnishings, seasonal decorations, and gifts.

Multiple locations are expected to close in the upcoming months, according to local reports. The move follows multiple store exits throughout 2026 as the company continues to rethink its retail strategy and determine which locations can remain financially viable.

Founded in Jackson, Tennessee, in 1966, Kirkland’s Home has grown to more than 300 stores across 35 states. However, its brick-and-mortar footprint has been contracting as its parent company makes broader changes to its business model and store portfolio.

Kirkland’s Home is closing more stores in 2026

Several Kirkland’s Home locations are scheduled to permanently close on Dec. 27. The reported closures include:

Cordova, Tennessee: The store at 2289 N. Germantown Parkway is scheduled to close, Commercial Appeal reported.

Southaven, Mississippi: The store at 6450 Towne Center Loop is scheduled to close, Commercial Appeal reported.

Madison, Mississippi: The store at 179 Grandview Boulevard, Suite 960, is scheduled to close, WJTV reported.

Evansville, Indiana: The store at 6501 E. Lloyd Expressway is scheduled to close, Evansville 411 News reported.

Gainesville, Georgia: The store at 850 Dawsonville Highway is scheduled to close, Gainesville Times reported.

The shutdowns will further reduce the retailer’s physical presence in markets where it has served shoppers for years, leaving some without a single location.

Why Kirkland Home stores are closing

Kirkland’s Home’s ongoing store closures are part of a broader turnaround effort by its parent company, Brand House Collective, to improve its financial performance and reshape its retail portfolio.

In February 2025, Brand House Collective, formerly known as Kirkland’s, Inc., announced that an initial group of stores failed to meet its performance standards in their current format.

The company said those locations represented approximately 6% of its store base, or about 19 of the 317 locations it operated at the time.

As part of the plan, Brand House Collective intended to shut underperforming stores while converting others to brands it believed could deliver stronger margins. The goal was to make better use of its real estate investments while creating opportunities for revenue growth.

“We’re aligning our identity with our vision to become a multi-brand merchandising, supply chain and retail operator – and backing it with decisive actions to strengthen our foundation: reducing excess inventory, closing underperforming locations, optimizing real estate assets, and enhancing talent across the organization,” said Kirkland’s then-CEO Amy Sullivan in a June 2025 statement.

“We are building a leaner, flatter and performance-led organization – driven by transformation, anchored in accountability, and powered by new ideas that we believe will deliver results.”

Brand House Collective also outlined plans to close 25 locations by January 2026. Those closures were separate from the two-year store conversion plan involving Bed Bath & Beyond (BBBY).

The latest shutdowns reflect the company’s continued effort to streamline its store footprint and focus on locations and brands it believes can better support its long-term strategy.

Kirkland’s Home closes more stores.Images By Tang Ming Tung / Getty Images

Kirkland’s Home stores that have already closed in 2026

The upcoming December closures follow numerous Kirkland’s Home shutdowns reported throughout 2026. Stores in several states have already disappeared from local shopping centers as the retailer continues to reshape its operations.

Among the locations reported to have closed are:

Trussville, Alabama: The store at 5474 Patrick Way closed by September 2026, Bham Now reported.

Rochester, Minnesota: The store at 2232 Third Avenue SE closed in April 2026, KROC-AM reported.

Smyrna, Georgia: The store at 2540 Cumberland Boulevard SE., Suite 8A, closed in February 2026, Atlanta Tomorrow’s News Today reported.

Hiram, Georgia: The store at 4794 Jimmy Lee Smith Parkway closed in February 2026, Atlanta Tomorrow’s News Today reported.

Davenport, Iowa: The store at 4235 Elmore Avenue closed in February 2026, Quad Cities Business Journal reported.

Opelika, Alabama: The store at 2630 Enterprise Drive closed by January 2026, WTVM reported.

Phoenix, Arizona: The store at 4619 E. Ray Road, Suite E-2, closed by January 2026, AZ Central reported.

Apple Valley, California: The store at 19105 Bear Valley Road, Suite B, closed by January 2026, Victorville Daily Press reported.

Fresno, California: The store at Villagio, 7891 N. Blackstone Avenue, closed by January 2026, Desert Sun reported.

Gilroy, California: The store at 950 Renz Lane, Suite 50, closed by January 2026, Desert Sun reported.

Lake Elsinore, California: The store at 29229 Central Avenue, Suite B, closed by January 2026, Desert Sun reported.

Palmdale, California: The store at 1247 Rancho Vista Boulevard closed by January 2026, Desert Sun reported.

Redlands, California: The store at 27451 San Bernardino Avenue closed by January 2026, Desert Sun reported.

Jacksonville, Florida: The store at 4870 Big Island Drive, Unit 6, closed by January 2026, Jacksonville Daily Record reported.

Fairview Heights, Illinois: The store at 320 St. Clair Square, closed by January 2026, Belleville News-Democrat reported.

Mays Landing, New Jersey: The store at 2300 Consumer Square, Suite 280, closed by January 2026, Merca 2.0 reported.

Watchung, New Jersey: The store at 1515 Route 22 W., Suite 39, closed by January 2026, Merca 2.0 reported.

Florence, South Carolina: The store at 2845 David H. McLeod Boulevard closed by January 2026, according to Facebook.

Kirkland’s Home brand changes hands as restructuring continues

Alongside its store closures, the retailer has undergone significant changes involving the ownership of its brand and its relationship with Bed Bath & Beyond.

On Sept. 15, 2025, Brand House Collective sold the intellectual property associated with Kirkland’s Home to Bed Bath & Beyond, Inc. for $10 million, double the initial $5 million purchase price announced in May 2025.

At the same time, Brand House Collective secured a $20 million expansion of its existing credit agreement with Bed Bath & Beyond. The additional financing was intended to support operations, store conversions, and channel expansion plans.

The transaction marked a significant development for the Kirkland’s Home brand as Brand House Collective continued working to improve its financial position and pursue its turnaround strategy.

During the third quarter of fiscal 2025, Brand House Collective reported that net sales declined more than 9.5% year over year. Consolidated comparable sales fell 7.4%, while e-commerce sales dropped 34.6%.

Here’s some of my previous coverage on Kirkland’s business:

After bankruptcy shutdown, iconic home brand opens new stores

Iconic retail name makes unexpected brick-and-mortar comeback

Popular formerly bankrupt retail chain makes brick-and-mortar comeback

The company’s financial results have also highlighted the challenges behind those efforts.

The results point to continued pressure on the company’s sales performance as it works to improve profitability and adjust its business model.

For shoppers, the latest closures mean fewer Kirkland’s Home stores to visit, with additional communities set to lose a local home decor retailer before the end of 2026.

Related: Iconic retail name makes unexpected brick-and-mortar comeback

If you listened to the earnings calls of the two largest U.S. oil companies on Oct. 30, one thing you did not hear from any executive was regret.

Regret at how much money that ExxonMobil ([XOM]) and Chevron ([CVX]) are making. Regret that they will continue to make a lot of money at least into 2027.

The chief executives of both oil giants would prefer to see the war between the United States, Israel and Iran come to an end. They know the war has been disruptive for everyone who lives on or near the Persian Gulf. It’s disrupted the global economy.

It’s been disruptive for the companies, but both made bets years ago on where to invest next. Those investments are coming in, and investors know.

Exxon shares have risen 55.6% to $187.25 this year, including a 2.2% gain on Oct. 30, despite an ugly tech-driven market rout.

Chevron was also higher on the day: 1.8% to $235.52. The shares are up 54.5% in 2026.

Both stocks have outperformed such big-time tech stocks as Apple ([AAPL]), Alphabet ([GOOGL]), Meta Platforms ([META]), Microsoft ([MSFT]) and (Yes, a gasp might be in order) Nvidia ([[NVIDIA]).

Still, the recovery from the havoc caused by the war will take time when the Middle East war ends, Exxon CEO Darren Woods and Chevron CEO Mike Wirth conceded.

Because both Woods and Wirth have been around long enough to know the oil business is cyclical, and busts are regular occurrences.

In the meantime, there is no denying Exxon and Chevron did report big numbers:

Exxon reported earnings of $4.23 a share on revenue of $113.2 billion. Earnings were up 111% from a year ago. Revenue jumped 35%.

Chevron earned $5.06 a share, up 178% from a year ago. Revenue jumped 39% to $67.8 billion.

Both, obviously, are benefitting from oil prices. But adding to the bottom line: Huge gains in diesel prices. The price of diesel, currently about $6.32 per gallon, is up 78% in 2026, according to AAA Fuel Prices. Coupled with a 3.5% increase in diesel yield from 2019, and in the refining process, and the result was about $1.5 billion added to Exxon’s margin, Chief Financial Officer Neil Hanson said on the oil giant’s earnings call.

Regular gasoline is up about 48% in the past year as well.

Utilization at Exxon’s U.S. Gulf Coast refineries was at 100%, the Associated Press noted, and U.S. Gulf Coast diesel production was at the second-highest on record.

They didn’t offer specific earnings estimates going forward; those will come later this fall.

Read more: Risk of more Mideast war boosts oil, threatens your wallet

Crude-oil tanker in the Mississippi River at New Orleans.Nirian / Getty Images

Exxon: Expect more growth from Guyana, the Permian Basin

Exxon’s huge find in off the northern coast of South America will be a key component to its future. The Guyana fields already are producing 1 million barrels of oil a day, amazing since 15 years ago few thought there was any oil potential in that region.

It’s building out a huge investment in Kazakhstan, and has a large stake in oil deposits in the Permian Basin in West Texas and New Mexico. It is also investing in natural gas resources in Mozambique.

Exxon continues to be confident in its capabilities. The company recently boosted its quarterly dividend 4% to $1.07 a share. It’s raised the dividend for 44 straight years.

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Chevron: Venezuela interest is growing

Chevron was unique in deciding to maintain a presence in Venezuela as the late Hugo Chavez nationalized the energy assets of most American oil companies.

After the United States seized then-Venezuelan president Nicolas Maduro in January. Chevron began to think about doing more with its stake. CEO Wirth said the company and its partners will spend $7 billion to double production of Venezuelan oil to 600,000 barrels a day.

Most of the oil will be shipped to refineries in Pascagoula, Miss., and Beaumont, Tex.

But on the Oct. 30 earnings call, CEO Wirth said Chevron has decided to use some of the cash reaped in recent years to explore for more oil and gas around the world. The company had been content to stick close to the United States, but the Iran war revealed for many the need to find and develop new oil and gas deposits.

One early effort seems to be paying off. Chevron recently announced a new oil and natural gas discovery in Angola in southern Africa.

Related: Exxon Mobil’s future rests on massive play (it isn’t Venezuela)

Anyone who has hosted a football watch party knows the moment after the food lands. Someone pulls out a phone and starts splitting the bill four ways. Wingstop Inc. (WING) is now building its sales pitch around that exact moment.

The chain’s Watch Party Bundle packs 20 classic wings, a large fry, and a large ranch, according to the company. Wingstop lists the bundle at $27.99 and split four ways, the bundle costs about $7 per person.

The timing is no coincidence. Domestic same-store sales fell 5.4% in the third quarter, according to Wingstop’s earnings release, which blamed fewer transactions and pressure on consumer spending. Same-store sales track restaurants that have been open for at least a year, so existing locations are simply taking fewer orders.

I went back through the call transcript, and the clearest explanation of the pitch came during the Q&A. Answering Guggenheim analyst Gregory Francfort on Wednesday, October 28, 2026, CEO Michael Skipworth said the bundle serves up to four people.

Wingstop, he added, chose to frame that value per head. “The messaging includes that $7 per person,” Skipworth said, according to a transcript of the call.

Also read: Wingstop’s slump is getting worse, not better

The $7 figure is math, not a markdown. Wingstop is describing its regular bundle price in smaller pieces rather than cutting it. Still, the plan carries a plain tension: Wingstop needs more orders, yet Skipworth insists this is not a quick promotional fix.

Budget-minded guests are still buying big

The quarter marked Wingstop’s sixth straight decline in same-store sales, and management cut its full-year forecast for the third time this year. The company now expects domestic same-store sales to fall 6.5% to 7% in 2026, a range that implies no quick rebound this quarter.

Lower-income consumers account for about 25% of Wingstop’s transactions, CFO Alex Kaleida said in April, according to Restaurant Dive. Those guests were not trading down, he said. “They’re actually trading up into larger bundles,” Kaleida told analysts.

That detail helps explain the per-person pitch. A household watching every dollar may skip solo visits but still chip in for a shared order on game day. The $7 framing speaks directly to that buyer.

Wingstop now pitches its $27.99 Watch Party Bundle at about $7 per person after domestic same-store sales fell 5.4% in the third quarter of 2026.Bloomberg / Getty Images

Gas prices explain only part of the slump

Gasoline prices rose 34.2% in the 12 months through September, according to the Bureau of Labor Statistics. Prices at limited-service restaurants, which include fast food chains, rose 3.2% over the same stretch, the BLS said. In other words, the squeeze on Wingstop’s customers is coming from the gas tank more than the menu board.

Even so, some rivals facing the same pump prices found ways to grow. Burger King’s U.S. comparable sales rose 8.4% last quarter, helped by value deals such as “3 for $7,” Reuters reported. Popeyes, which shares a parent with Burger King in Restaurant Brands International (QSR), saw U.S. same-store sales fall 2.2%, according to CNBC.

Burger King’s 3-for-$7 deal and Wingstop’s $7 pitch land on the same number. The difference is that one customer can claim Burger King’s price alone, while Wingstop’s requires four people to share a $27.99 order. A per-person price only works when the table is full.

Morgan Stanley sees progress but wants proof

Wall Street gave Wingstop some credit for the early fixes. Brian Harbour called the results “perhaps the definition of better-than-feared,” according to a Morgan Stanley research note shared with TheStreet.

The note, titled “3Q26: Amid Clear Headwinds, Nascent Progress Recently,” kept an Overweight rating but trimmed the price target to $198 from $202. Harbour wrote that more proof points are needed before declaring victory.

Harbour also pointed to a quieter tailwind. Chicken prices have been favorable this year, he wrote, and Wingstop is locking in multi-year supply contracts at attractive prices, which helps franchisees. Cheap wings let those operators honor a $7 pitch with less strain on margins.

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The broader Street remains patient too. Wingstop carries a consensus Buy rating from 28 analysts, according to StockAnalysis. Their average price target of $186.46 sits well above the current share price.

The latest calls tracked by StockAnalysis, all made after the report:

Buy rating, with the target raised to $170 from $165 by Wells Fargo’s Zachary Fadem on Thursday, October 29, 2026.

Hold rating, with the target raised to $150 from $140 by UBS’s Dennis Geiger on Thursday, October 29, 2026.

Hold rating, with the target cut to $160 from $165 by BMO Capital’s Andrew Strelzik on Thursday, October 29, 2026.

Wingstop’s real test comes after football season

The stock shrugged off the weak sales. Shares jumped 11% in afternoon trading on Wednesday, October 28, 2026. Even after the bounce, the stock was still down about 46% for the year.

For shoppers, the $7 math works only when four people split the order. When Francfort opened Wingstop’s app, he said individual bundles ran about $8 to $10. That makes a full table the better per-person deal.

Longer term, Morgan Stanley’s bull case, worth $263 a share, assumes same-store sales climb back to mid-single-digit growth. Its bear case, at $76, assumes comparable sales stay negative through 2026 while store growth slows to single digits.

I’ll be watching the months after the Super Bowl, when Wingstop must prove its game day deals built a year-round habit. Fast-food value fights have long centered on the cheapest single meal. Wingstop is betting the next round will be won on the cheapest seat at a shared table.

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