Common use of Beneficiary Distribution Requirements Clause in Contracts

Beneficiary Distribution Requirements. If you die before January 1, 2020, the rules determining the distribution of your IRA balance depend on several factors including whether you had a designated beneficiary, your relationship to the beneficiary (spouse or nonspouse) and whether you died before or after required minimum distributions (RMDs) were required to begin. Designated Beneficiary. A designated beneficiary is an individual who is designated by you in writing as a beneficiary of this Traditional IRA in a manner acceptable to the Custodian or designated as a beneficiary under the terms of the plan agreement. With the exception of certain qualified see-through trust beneficiaries, only individuals may be treated as designated beneficiaries for purposes of determining required distributions under Code Section 401(a)(9) following your death. Except as provided otherwise in applicable Treasury Regulations, for purposes of determining the applicable distribution period following your death, your designated beneficiary will be determined based on the beneficiaries designated as of your date of death who remain beneficiaries as of September 30 of the calendar year following the calendar year of your death. If You Die Before April 1 Following the Year you Reach Age 70½. Generally, if you die before April 1 following the year you reach age 70½ and your designated beneficiary(ies) is an individual, they may elect a distribution method. Your beneficiary(ies) may elect to deplete the IRA by the end of the fifth calendar year following your death or to receive payments based on the designated beneficiary(ies)’s life expectancy. If life expectancy payments are elected, the payments must begin by December 31 of the first calendar year following your death. However, if your surviving spouse is your sole designated beneficiary, they may delay the first distribution until December 31 of the year you would have attained age 70½ (if your date of birth is before July 1, 1949), age 72 (if your date of birth is after June 30, 1949 and before January 1, 1951), age 73 (if your date of birth is after December 31, 1950 and before January 1, 1960), or age 75 (if your date of birth is after December 31, 1959), if later.

Beneficiary Distribution Requirements. If you die before January 1, 2020, the rules determining the distribution of your IRA balance depend on several factors including whether you had a designated beneficiary, your relationship to the beneficiary (spouse or nonspouse) and whether you died before or after required minimum distributions (RMDs) were required to begin. Designated Beneficiary. A designated beneficiary is an individual who is designated by you in writing as a beneficiary of this Traditional IRA in a manner acceptable to the Custodian or designated as a beneficiary under the terms of the plan agreement. With the exception of certain qualified see-through see‐through trust beneficiaries, only individuals may be treated as designated beneficiaries for purposes of determining required distributions under Code Section 401(a)(9) following your death. Except as provided otherwise in applicable Treasury Regulations, for purposes of determining the applicable distribution period following your death, your designated beneficiary will be determined based on the beneficiaries designated as of your date of death who remain beneficiaries as of September 30 of the calendar year following the calendar year of your death. If You Die Before April 1 Following the Year you Reach Age 70½. Generally, if you die before April 1 following the year you reach age 70½ and your designated beneficiary(ies) is an individual, they may elect a distribution method. Your beneficiary(ies) may elect to deplete the IRA by the end of the fifth calendar year following your death or to receive payments based on the designated beneficiary(ies)’s life expectancy. If life expectancy payments are elected, the payments must begin by December 31 of the first calendar year following your death. However, if your surviving spouse is your sole designated beneficiary, they may delay the first distribution until December 31 of the year you would have attained age 70½ (if your date of birth is before July 1, 1949), age 72 (if your date of birth is after June 30, 1949 and before January 1, 1951), age 73 (if your date of birth is after December 31, 1950 and before January 1, 1960), or age 75 (if your date of birth is after December 31, 1959), if later.first