Minimum Distribution Amount Clause Samples
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Minimum Distribution Amount. The minimum distribution rules applicable to individual retirement annuities described in Code section 408(b) and individual retirement accounts described in Code section 408(a) apply to Code section 403(b) contracts. The minimum amount first distribution year and continuing through the year of death, shall not be less than the quotient obtained by dividing the value of the 403(b) account as the end of the preceding year by the distribution in the Uniform Lifetime Table in Code section 1.401(a)(9)-(9) using the individuals’ age as of his or her birthday year. The surviving spouse of a Participant is not permitted to treat a Code section 403(b) contract as the spouse’s own Code section 403(b), even if the spouse is the sole beneficiary.
Minimum Distribution Amount. The entire interest of the individual for whose benefit the contract is maintained (Participant) will be distributed or commence to be distributed, no later than the first day of April following the calendar year in which such individual attains age 701/2 (required beginning date), over (a) the life of such individual, or the lives of such individual and his or her designated beneficiary, or (b) a period certain not extending beyond the life expectancy of such individual and his or her designated beneficiary. Payments must be made in periodic payments at intervals of no longer than one year. In addition, payments must be either non-increasing or they may increase only as provided in Q&A F-3 of Section 1.401 (a)(9)-1 of the Proposed Income Tax Regulations. All distributions made hereunder shall be made in accordance with the requirements of Section 401(a)(9) of the Code, including the incidental death benefit requirements of Section 401(a)(9)(G) of the Code, and the regulations thereunder, including the minimum distribution incidental benefit requirement of section 4.401(a)(9)-2 of the Proposed Income Tax Regulations. Life expectancy is computed by use of the expected return multiples in Tables V and VI of Section 1.72-9 of the Income Tax Regulations. Unless otherwise elected by the individual by the time distributions are required to begin, life expectancies shall be recalculated annually. Such election shall be irrevocable by the individual and shall apply to all subsequent years. The life expectancy of a non-spouse beneficiary may not be recalculated. Instead, life expectancy will be calculated using the attained age of such beneficiary during the calendar year in which the individual attains age 701/2, and payments for subsequent years shall be calculated based on such life expectancy reduced by one for each calendar year which has elapsed since the calendar year life expectancy was first calculated.
(a) Distributions beginning before death If the Participant dies after distribution of his or her interest has begun, the remaining portion of such interest will continue to be distributed at least as rapidly as under the method of distribution being used prior to the individual's death.
(b) Distributions beginning after death If the Participant dies before distribution of his or her interest begins distribution of the Participant's entire interest shall be completed by December 31 of the calendar year containing the fifth anniversary of the individual's de...
Minimum Distribution Amount. □ The Plan will provide the lesser of the account balance or $ A distributable event due to Disability occurs (select all that apply):