Common use of Yes Clause in Contracts

Yes. If you die before receiving the balance of your Xxxx XXX, distribution of your remaining account balance is subject to several special rules, depending upon the year of death and whether the beneficiary is an “eligible designated beneficiary.” An eligible designated beneficiary is a surviving spouse, a minor child, chronically ill or disabled, or anyone not listed above who is not more than 10 years younger than the original owner. In the case of a minor child, full distribution must occur within 10 years of the child attaining the age of majority. If you die in 2019 or earlier, or the beneficiary is an eligible designated beneficiary as described above, your remaining interest may begin to be distributed by December 31 of the year following your death over a period not exceeding the life expectancy or expectancies of your designated beneficiary or beneficiaries. The minimum amount that must be distributed is the account value at the close of business on December 31 of the preceding year divided by the life expectancy of the designated beneficiary using the age of the beneficiary in the year following the year of the depositor’s death and subtracting 1 from the divisor for each subsequent year. If you die in 2020 or later, and the beneficiary is not an eligible beneficiary as described above, then full distribution must occur no later than 10 years after the date of death. An eligible designated beneficiary may choose the 10-year distribution option. Two additional distribution options are available if your spouse is the beneficiary: (i) payments to your spouse may commence as late as December 31 of the year you would have attained RMD age and be distributed over a period not exceeding the life expectancy of your spouse, or (ii) your spouse can simply elect to treat your Xxxx XXX as her or his own.