Common use of Designated Beneficiary Clause in Contracts

Designated Beneficiary. A designated beneficiary is any named beneficiary who has an interest in your SIMPLE IRA on the determination date, which is September 30 of the year following your death year. Named beneficiaries who completely distribute their interests in your SIMPLE IRA, or completely disclaim their interests in your SIMPLE IRA under IRC Section 2518, will not be considered when designated beneficiaries are determined. Named beneficiaries who die after your death but before the determination date will still be considered for the sake of determining the distribution period. If any named beneficiary that is not an individual, such as an estate or charity, has an interest in your SIMPLE IRA on the determination date, and separate accounting does not apply, your SIMPLE IRA will be treated as having no designated beneficiary. If you name a qualified trust, which is defined in Treasury Regulation 1.401(a)(9)-4, Q&A 5, as your SIMPLE IRA beneficiary, the beneficiaries of the qualified trust are treated as the beneficiaries of your SIMPLE IRA for purposes of determining designated beneficiaries and the appropriate life expectancy period after your death. A qualified trust provides documentation of its beneficiaries to the custodian.

Designated Beneficiary. A designated beneficiary is any named beneficiary who has an interest in your SIMPLE IRA Xxxx XXX on the determination date, which is September 30 of the year following your death year. Named beneficiaries who completely distribute their interests in your SIMPLE IRAXxxx XXX, or completely disclaim their interests in your SIMPLE IRA Xxxx XXX under IRC Section 2518, will not be considered when designated beneficiaries are determined. Named beneficiaries who die after your death but before the determination date will still be considered for the sake of determining the distribution period. If any named beneficiary that is not an individual, such as an estate or charity, has an interest in your SIMPLE IRA Xxxx XXX on the determination date, and separate accounting does not apply, your SIMPLE IRA Xxxx XXX will be treated as having no designated beneficiary. If you name a qualified trust, which is defined in Treasury Regulation 1.401(a)(9)-4, Q&A 5, as your SIMPLE IRA Xxxx XXX beneficiary, the beneficiaries of the qualified trust are treated as the beneficiaries of your SIMPLE IRA Xxxx XXX for purposes of determining designated beneficiaries and the appropriate life expectancy period after your death. A qualified trust provides documentation of its beneficiaries to the custodian.