Common use of Year Rule Clause in Contracts

Year Rule. The 10-Year Rule requires depletion of the inherited funds by the end of the tenth calendar year following the year of your death. If an eligible designated beneficiary elects to take distributions from the Inherited ▇▇▇▇ ▇▇▇ in accordance with the 10-Year Rule, they are not subject to a distribution requirement each year. Life Expectancy Payments: Under the Life Expectancy Payments option, your beneficiary must withdraw a minimum amount each year beginning in the calendar year following your death. To determine the minimum required distribution amount for a given year, the ▇▇▇▇ ▇▇▇ balance (i.e., generally the fair market value of the Inherited ▇▇▇▇ ▇▇▇ on December 31 of the preceding year) is divided by the applicable denominator. The applicable denominator is derived from the