Distribution of Benefits. (a) The Administrator, pursuant to the election of the Participant, shall direct the Trustee to distribute to a Participant or such Participant’s Beneficiary the amount (if any) to which the Participant (or Beneficiary) has become entitled under the Plan in one or more of the following methods: (1) One lump-sum payment in cash or in property allocated to the Participant’s Account. This shall be the normal form of payment, except as otherwise provided below. (2) Payments over a period certain in monthly, quarterly, semiannual, or annual cash installments. In order to provide such installment payments, the Administrator may (A) segregate the aggregate amount thereof in a separate, federally insured savings account, certificate of deposit in a bank or savings and loan association, money market certificate or other liquid short-term security or (B) purchase a nontransferable annuity Contract for a term certain (with no life contingencies) providing for such payment. The period over which such payment is to be made shall not extend beyond the Participant’s life expectancy (or the life expectancy of the Participant and the Participant’s designated Beneficiary). If the value of the Participant’s Total Vested Benefit does not exceed $5,000, then distribution may only be paid as a lump-sum payment. This distribution will be made regardless of the Participant’s and the Participant’s spouse’s written consent. No distribution may be made under the preceding sentence after the Annuity Starting Date unless the Participant and the Participant’s spouse consent in writing (or in such form as permitted by the Internal Revenue Service) to such distribution. (b) Any distribution to a Participant who has a Total Vested Benefit which exceeds $5,000 shall require such Participant’s written consent (or in such other form as permitted by the Internal Revenue Service) if such distribution commences prior to the time the benefit is “immediately distributable.” A benefit is “immediately distributable” if any part of the benefit could be distributed to the Participant (or surviving spouse) before the Participant attains (or would have attained if not deceased) the later of the Participant’s Normal Retirement Age or age 62. Any such distribution may be made less than thirty (30) days after the notice required under Regulation 1.411(a)-11(c) is given, provided that: (1) the Administrator clearly informs the Participant that the Participant has a right to a period of at least thirty (30) days after receiving the notice to consider the decision of whether or not to elect a distribution (and, if applicable, a particular distribution option), and (2) the Participant, after receiving the notice, affirmatively elects a distribution. (c) If a mandatory distribution greater than $1,000 is made in accordance with the provisions of the Plan providing for an automatic distribution to a Participant without the Participant’s consent, and the Participant does not elect to have such distribution paid directly to an eligible retirement plan specified by the Participant in a direct rollover (in accordance with the direct rollover provisions of the Plan) or to receive the distribution directly, then the Administrator shall direct that the distribution be made in a direct rollover to an Individual Retirement Account described in Code Section 408(a) or an Individual Retirement Annuity described in Code Section 408(b), as designated by the Administrator. The Administrator may operationally implement this provision with respect to distributions that are $1,000 or less. (d) All annuity Contracts under this Plan shall be non-transferable when distributed. Furthermore, the terms of any annuity Contract purchased and distributed to a Participant or spouse shall comply with all of the requirements of the Plan. (e) Required minimum distributions (Code Section 401(a)(9)). Notwithstanding any provision in the Plan to the contrary, the distribution of a Participant’s benefits shall be made in accordance with the requirements of Section 6.8.
Appears in 1 contract
Samples: 401(k) Plan (Chevron Corp)
Distribution of Benefits. (a) The Administrator, pursuant to the election of the Participant, Plan Administrator shall direct the Trustee to distribute make, or cause the Insurer to a make, payment of any benefits provided under this Article XII. Unless the Participant elects otherwise, distribution of benefits will begin no later than the 60th day after the latest of the close of the Plan Year in which:
(1) the Participant attains Age 65 ( or such Participant’s Beneficiary Normal Retirement Age, if earlier);
(2) occurs the amount (if any) to 10th anniversary of the year in which the Participant commenced participation in the Plan; or,
(3) the Participant terminates service with the Employer. In no event will benefits begin to be distributed prior to the later of age 62 or BeneficiaryNormal Retirement Age without the consent of the Participant, except as indicated below. The consent of the Participant's spouse will also be required for any such distribution unless (i) has become entitled under the plan is a profit sharing plan described in Subsection 12.08(e) or (ii) the benefit is paid in the form of a qualified Joint and Survivor Annuity. Neither the consent of the Participant or his or her spouse is required if the present value of the Participant's vested Accrued Benefit attributable to all Contributions other than Tax Deductible Voluntary Contributions is $3,500 or less. In such event the Plan Administrator shall pay such benefit to the Participant or his Beneficiary in a lump sum and no other settlement option shall be available. However, unless the Plan is a plan described in Subsection 12.08(e), no distribution shall be made pursuant to the preceding sentence after the first day of the first period for which an amount is received as an annuity unless the Participant and his or her spouse ( or the Participant's surviving spouse) consent in writing to such distribution. Except as provided below and in Sections 12.05 and 12.08, a Participant, with spousal consent where applicable, shall have the sole right to receive his benefit in accordance with one or more of the following methods:
(1) One lump-sum payment ways, and which may be paid in cash or in property allocated to the Participant’s Account. This shall be the normal form kind, or a combination of payment, except as otherwise provided belowthem:
(a) one sum.
(2b) Payments over an annuity for the life of the Participant.
(c) an annuity for the life of the Participant and upon his death 100%, 66 2/3% or 50% (whichever is specified when this option is elected) of the annuity amount will be continued to his contingent annuitant. No further annuity benefits are payable after the death of both the Participant and his contingent annuitant.
(d) an annuity for the joint lives of the Participant and his joint annuitant which 100%, 66 2/3% or 50% (whichever is specified when this option is elected) of such amount payable as an annuity for life to the survivor. No further benefits are payable after the death of both the Participant and his joint annuitant.
(e) an annuity for the life of the Participant with installment payments for a period certain in monthly, quarterly, semiannual, or annual cash installments. In order to provide such not longer than the life expectancy of the Participant.
(f) installment payments, the Administrator may (A) segregate the aggregate amount thereof in a separate, federally insured savings account, certificate of deposit in a bank or savings and loan association, money market certificate or other liquid short-term security or (B) purchase a nontransferable annuity Contract payments for a term period certain (with no life contingencies) providing for such payment. The period over which such payment is to be made shall not extend beyond the Participant’s life expectancy (or longer than the life expectancy of the Participant and the Participant’s his designated Beneficiary)beneficiary. If the value All optional forms of the Participant’s Total Vested Benefit does not exceed $5,000, then distribution may only be paid as a lump-sum payment. This distribution will be made regardless of the Participant’s and the Participant’s spouse’s written consent. No distribution may be made under the preceding sentence after the Annuity Starting Date unless the Participant and the Participant’s spouse consent in writing (or in such form as permitted by the Internal Revenue Service) to such distribution.
(b) Any distribution to a Participant who has a Total Vested Benefit which exceeds $5,000 shall require such Participant’s written consent (or in such other form as permitted by the Internal Revenue Service) if such distribution commences prior to the time the benefit is “immediately distributable.” A benefit is “immediately distributable” if any part of the benefit could be distributed to the Participant (or surviving spouse) before the Participant attains (or would have attained if not deceased) the later of the Participant’s Normal Retirement Age or age 62. Any such distribution may be made less than thirty (30) days after the notice required under Regulation 1.411(a)-11(c) is given, provided that: (1) the Administrator clearly informs the Participant that the Participant has a right to a period of at least thirty (30) days after receiving the notice to consider the decision of whether or not to elect a distribution (and, if applicable, a particular distribution option), and (2) the Participant, after receiving the notice, affirmatively elects a distribution.
(c) If a mandatory distribution greater than $1,000 is made in accordance with the provisions of the Plan providing for an automatic distribution to a Participant without the Participant’s consent, and the Participant does not elect to have such distribution paid directly to an eligible retirement plan specified by the Participant in a direct rollover (in accordance with the direct rollover provisions of the Plan) or to receive the distribution directly, then the Administrator shall direct that the distribution be made in a direct rollover to an Individual Retirement Account described in Code Section 408(a) or an Individual Retirement Annuity described in Code Section 408(b), as designated by the Administrator. The Administrator may operationally implement this provision with respect to distributions that are $1,000 or less.
(d) All annuity Contracts under this Plan shall be non-transferable when distributed. Furthermore, the terms of any annuity Contract purchased and distributed to a Participant or spouse shall comply with all of the requirements of the Plan.
(e) Required minimum distributions (Code Section 401(a)(9)). Notwithstanding any provision in the Plan to the contrary, the distribution of a Participant’s benefits shall be made in accordance with actuarially equivalent. Notwithstanding the requirements of Section 6.8.above requirements:
Appears in 1 contract
Distribution of Benefits. (a) The Administrator, pursuant to the election of the Participant, shall direct the Trustee to distribute to a Participant or such Participant’s his Beneficiary the any amount (if any) to which the Participant (or Beneficiary) has become he is entitled under the Plan in one or more of the following methods:
(1) One lump-sum payment in cash or in property allocated to the Participant’s Account. This shall be the normal form a series of payment, except as otherwise provided below.
(2) Payments over a period certain in monthly, quarterly, semiannual, or annual cash installments. In order to provide such installment payments, the Administrator may (A) segregate the aggregate amount thereof in a separate, federally insured savings account, certificate of deposit in a bank or savings and loan association, money market certificate or other liquid short-term security or (B) purchase a nontransferable annuity Contract for a term certain (with no life contingencies) providing for such payment. The period over which such payment is to be made shall periodic payments not extend beyond the Participant’s life expectancy (or exceeding the life expectancy of the Participant or the joint and the Participant’s designated Beneficiary). If the value last survivor life expectancy of the Participant’s Total Vested Benefit does not exceed $5,000, then distribution may only be paid as a lump-sum payment. This distribution will be made regardless of the Participant’s and the Participant’s spouse’s written consent. No distribution may be made under the preceding sentence after the Annuity Starting Date unless the Participant and the Participant’s spouse consent his Beneficiary, in writing (cash or in such form as permitted by the Internal Revenue Service) to such distributionproperty.
(b) Any distribution to a Participant who has a Total Vested Benefit benefit which exceeds exceeds, or has ever exceeded, $5,000 ($3,500 for Plan Years beginning prior to August 6, 1997) at the time of any distribution prior to March 22, 1999 shall require such Participant’s written 's consent (or in such other form as permitted by the Internal Revenue Service) if such distribution commences occurs prior to the time the benefit is “immediately distributable.” A benefit is “immediately distributable” if any part of the benefit could be distributed to the Participant (or surviving spouse) before the Participant attains (or would have attained if not deceased) the later of the Participant’s his Normal Retirement Age or age 62. With regard to this required consent:
(1) The Participant must be informed of his right to defer receipt of the distribution. If a Participant fails to consent, it shall be deemed an election to defer the distribution of any benefit. However, any election to defer the receipt of benefits shall not apply with respect to distributions which are required under Section 6.4(c).
(2) Notice of the rights specified under this paragraph shall be provided no less than 30 days and no more than 90 days before the date the distribution commences.
(3) Consent of the Participant to the distribution must not be made before the Participant receives the notice and must not be made more than 90 days before the date the distribution commences.
(4) No consent shall be valid if a significant detriment is imposed under the Plan on any Participant who does not consent to the distribution. Any such distribution may be made commence less than thirty (30) 30 days after the notice required under Regulation 1.411(a)-11(c) is given, provided that: (1) the Administrator clearly informs the Participant that the Participant has a right to a period of at least thirty (30) 30 days after receiving the notice to consider the decision of whether or not to elect a distribution (and, if applicable, a particular distribution option), and (2) the Participant, after receiving the notice, affirmatively elects a distribution.
(c) If Notwithstanding any provision in the Plan to the contrary, for Plan Years beginning after December 31, 1996, the distribution of a mandatory distribution greater than $1,000 is Participant's benefits shall be made in accordance with the following requirements and shall otherwise comply with Code Section 401(a)(9) and the Regulations thereunder (including Regulation 1.401(a)(9)-2), the provisions of which are incorporated herein by reference:
(1) A Participant's benefits shall be distributed or must begin to be distributed to him not later than April 1st of the calendar year following the later of (i) the calendar year in which the Participant attains age 70 1/2 or (ii) the calendar year in which the Participant retires, provided, however, that this clause (ii) shall not apply in the case of a Participant who is a "five (5) percent owner" at any time during the Plan providing for an automatic distribution Year ending with or within the calendar year in which such owner attains age 70 1/2. Such distributions shall be equal to or greater than any required distribution.
(2) Distributions to a Participant without the Participant’s consent, and the Participant does not elect to have such distribution paid directly to an eligible retirement plan specified by the Participant in a direct rollover (his Beneficiaries shall only be made in accordance with the direct rollover provisions incidental death benefit requirements of the Plan) or to receive the distribution directly, then the Administrator shall direct that the distribution be made in a direct rollover to an Individual Retirement Account described in Code Section 408(a401(a)(9)(G) or an Individual Retirement Annuity described in Code Section 408(b), as designated by and the Administrator. The Administrator may operationally implement this provision with respect to distributions that are $1,000 or lessRegulations thereunder.
(de) The restrictions imposed by this Section shall not apply if a Participant has, prior to January 1, 1984, made a written designation to have his retirement benefit paid in an alternative method acceptable under Code Section 401(a) as in effect prior to the enactment of the Tax Equity and Fiscal Responsibility Act of 1982. Any such written designation made by a Participant shall be binding upon the Plan Administrator notwithstanding any contrary provision of Section 6.4.
(f) All annuity Contracts under this Plan shall be non-transferable when distributed. Furthermore, the terms of any annuity Contract purchased and distributed to a Participant or spouse shall comply with all of the requirements of the Plan.
(eg) Required minimum distributions If a distribution is made at a time when a Participant is not fully Vested in his Participant's Account and the Participant may increase the Vested percentage in such account:
(Code Section 401(a)(9)). Notwithstanding any provision 1) a separate account shall be established for the Participant's interest in the Plan as of the time of the distribution; and
(2) at any relevant time, the Participant's Vested portion of the separate account shall be equal to an amount ("X") determined by the formula: X equals P(AB plus (R x D)) - (R x D) For purposes of applying the formula: P is the Vested percentage at the relevant time, AB is the account balance at the relevant time, D is the amount of distribution, and R is the ratio of the account balance at the relevant time to the contrary, the distribution of a Participant’s benefits shall be made in accordance with the requirements of Section 6.8account balance after distribution.
Appears in 1 contract
Samples: 401(k) Profit Sharing Plan and Trust Agreement (Ameritrade Holding Corp)
Distribution of Benefits. (a) The Administrator, pursuant to the election of the Participant, shall direct the Trustee to distribute to a Participant or such Participant’s 's Beneficiary the any amount (if any) to which the Participant (or Beneficiary) has become is entitled under the Plan in one or more of the following methods:
(1) One lump-sum payment in cash or in property allocated to the Participant’s Account. This shall be 's account except, however, for property distributions made prior to the normal form earlier of payment(A) the effective date of an amendment limiting distribution in property to property allocated to the Participant's account, except as otherwise provided belowor (B) the adoption date of this amendment and restatement, distributions in property are not limited to property in the Participant's account.
(2) Payments over a period certain in monthly, quarterly, semiannual, or annual cash installments. In order to provide such installment payments, the Administrator may (A) segregate the aggregate amount thereof in a separate, federally insured savings account, certificate of deposit in a bank or savings and loan association, money market certificate or other liquid short-term security or (B) purchase a nontransferable annuity Contract contract for a term certain (with no life contingencies) providing for such payment. The period over which such payment is to be made shall not extend beyond the Participant’s 's life expectancy (or the life expectancy of the Participant and the Participant’s 's designated Beneficiary). If the value of the Participant’s Total Vested Benefit does not exceed $5,000, then distribution may only be paid as a lump-sum payment. This distribution will be made regardless of the Participant’s and the Participant’s spouse’s written consent. No distribution may be made under the preceding sentence after the Annuity Starting Date unless the Participant and the Participant’s spouse consent in writing (or in such form as permitted by the Internal Revenue Service) to such distribution.
(b) Any distribution to a Participant Participant, for Plan Years beginning after August 5, 1997, who has a Total Vested Benefit benefit which exceeds $5,000 ($3,500 for Plan Years beginning prior to August 6, 1997) or, if the distribution is made prior to March 22, 1999, has ever exceeded $5,000 ($3,500 for Plan Years beginning prior to August 6, 1997) at the time of any prior distribution, shall require such Participant’s 's written consent (or in such other form as permitted by the Internal Revenue Service) consent if such distribution commences prior to the time the benefit is “"immediately distributable.” " A benefit is “"immediately distributable” " if any part of the benefit could be distributed to the Participant (or surviving spouse) before the Participant attains (or would have attained if not deceased) the later of the Participant’s 's Normal Retirement Age or age 62. Any However, for distributions prior to October 17, 2000, if a Participant has begun to receive distributions pursuant to an optional form of benefit under which at least one scheduled periodic distribution has not yet been made, and if the value of the Participant's benefit, determined at the time of the first distribution under that optional form of benefit, exceeded $5,000 ($3,500 for Plan Years beginning prior to August 6, 1997), then the value of the Participant's benefit prior to October 17, 2000 is deemed to continue to exceed such distribution may amount.
(c) The following rules will apply to the consent requirements set forth in subsection (b):
(1) The Participant must be made informed of the right to defer receipt of the distribution. If a Participant fails to consent, it shall be deemed an election to defer the commencement of payment of any benefit. However, any election to defer the receipt of benefits shall not apply with respect to distributions which are required under Section 6.5(d).
(2) Notice of the rights specified under this paragraph shall be provided no less than thirty (30) days after the notice required under Regulation 1.411(a)-11(c) is given, provided that: and no more than ninety (1) the Administrator clearly informs the Participant that the Participant has a right to a period of at least thirty (3090) days after receiving before the notice to consider date the decision of whether or not to elect a distribution (and, if applicable, a particular distribution option), and (2) the Participant, after receiving the notice, affirmatively elects a distributioncommences.
(c3) If a mandatory distribution greater than $1,000 is made in accordance with Written (or such other form as permitted by the provisions Internal Revenue Service) consent of the Plan providing for an automatic Participant to the distribution to a Participant without the Participant’s consent, and must not be made before the Participant does receives the notice and must not elect to have such distribution paid directly to an eligible retirement plan specified by be made more than ninety (90) days before the Participant in a direct rollover (in accordance with the direct rollover provisions of the Plan) or to receive date the distribution directly, then the Administrator shall direct that the distribution be made in a direct rollover to an Individual Retirement Account described in Code Section 408(a) or an Individual Retirement Annuity described in Code Section 408(b), as designated by the Administrator. The Administrator may operationally implement this provision with respect to distributions that are $1,000 or lesscommences.
(d4) All annuity Contracts under this Plan No consent shall be non-transferable when distributed. Furthermore, the terms of any annuity Contract purchased and distributed to valid if a Participant or spouse shall comply with all of the requirements of the Plan.
(e) Required minimum distributions (Code Section 401(a)(9)). Notwithstanding any provision in significant detriment is imposed under the Plan on any Participant who does not consent to the contrary, the distribution of a Participant’s benefits shall be made in accordance with the requirements of Section 6.8distribution.
Appears in 1 contract
Samples: 401(k) Profit Sharing Plan Agreement (Winton Financial Corp)
Distribution of Benefits. (a) The Administrator, pursuant to the election of the Participant, Plan Administrator shall direct the Trustee to distribute make, or cause the Insurer to make, payment of any benefits provided under this Article XII. Subject to Section 12.08, Joint and Survivor Annuity Requirements, the requirements of this Section shall apply to any distribution of a Participant's interest and will take precedence over any inconsistent provisions of this Plan. Unless otherwise specified, the provisions of this Section apply to calendar years beginning after December 31, 1984. All distributions required under the Plan shall be determined and made in accordance with the proposed regulations under Code Section 401(a)(9), including the minimum distribution incidental benefit requirement of Section 1.401(a)(9)-2 of the proposed regulations. Unless the Participant elects otherwise, distribution of benefits will begin no later than the 60th day after the latest of the close of the Plan Year in which:
(a) the Participant attains Age 65 (or such Participant’s Beneficiary Normal Retirement Age, if earlier);
(b) occurs the amount (if any) to 10th anniversary of the year in which the Participant commenced participation in the Plan; or,
(c) the Participant terminates service with the Employer. In no event will benefits begin to be distributed prior to the later of age 62 or Normal Retirement Age without the consent of the Participant. The consent of the Participant's spouse will also be required for any such distribution unless (i) the plan is a profit sharing plan described in Subsection 12.08(e) or (ii) the benefit is paid in the form of a Qualified Joint and Survivor Annuity. Neither the consent of the Participant or his or her spouse is required if the present value of the Participant's vested Accrued Benefit is $3,500 or less. In such event the Plan Administrator shall pay such benefit to the Participant or his Beneficiary in a lump sum and no other settlement option shall be available. However, unless the Plan is a plan described in Subsection 12.08(e), no distribution shall be made pursuant to the preceding sentence after the first day of the first period for which an amount is received as an annuity unless the Participant and his or her spouse (or Beneficiarythe Participant's surviving spouse) has become entitled under consent in writing to such distribution. Except as provided in Sections 12.05 and 12.08, or, to the Plan extent an election of Section 12.07(b) of the Adoption Agreement is effective, a Participant, with spousal consent where applicable, shall have the sole right to receive this benefit in accordance with one or more of the following methods:
(1) One lump-sum payment ways, and which may be paid in cash or in property allocated to kind, or a combination of them:
(a) an annuity for the life of the Participant’s Account. This shall be the normal form of payment, except as otherwise provided below.
(2b) Payments over an annuity for the life of the Participant and upon his death 100%, 66 2/3% or 50% (whichever is specified when this option is elected) of the annuity amount will be continued to his contingent annuitant. No further annuity benefits are payable after the death of both the Participant and his contingent annuitant.
(c) an annuity for the joint lives of the Participant and his joint annuitant with 100%, 66 2/3% or 50% (whichever is specified when this option is elected) of such amount payable as an annuity for life to the survivor. No further benefits are payable after the death of both the Participant and his joint annuitant.
(d) an annuity for the life of the Participant with installment payments for a period certain in monthly, quarterly, semiannual, or annual cash installments. In order to provide such not longer than the life expectancy of the Participant.
(e) installment payments, the Administrator may (A) segregate the aggregate amount thereof in a separate, federally insured savings account, certificate of deposit in a bank or savings and loan association, money market certificate or other liquid short-term security or (B) purchase a nontransferable annuity Contract payments for a term period certain (with no life contingencies) providing for such payment. The period over which such payment is to be made shall not extend beyond the Participant’s life expectancy (or longer than the life expectancy of the Participant and the Participant’s his designated Beneficiary). To the extent an election of Section 12.07(b) of the Adoption Agreement is effective, a Participant, with spousal consent where applicable, shall have the sole right to receive his or her benefit in one sum, paid in cash or in kind or a combination thereof. All optional forms of benefit shall be actuarially equivalent. If the value of the Participant’s Total Vested Benefit does not exceed $5,000, then distribution may only be paid as a lump-sum payment. This distribution will be made regardless of the Participant’s and the Participant’s spouse’s written consent. No distribution may be made under the preceding sentence after the Annuity Starting Date unless the Participant and the Participant’s spouse consent in writing (or in such form as permitted by the Internal Revenue Service) to such distribution.
(b) Any distribution to a Participant who has a Total Vested Benefit which exceeds $5,000 shall require such Participant’s written consent (or in such other form as permitted by the Internal Revenue Service) if such distribution commences prior to the time the benefit an annuity contract is “immediately distributable.” A benefit is “immediately distributable” if any part of the benefit could be distributed to the Participant (or surviving spouse) before the Participant attains (or would have attained if not deceased) the later of the Participant’s Normal Retirement Age or age 62. Any such distribution may be made less than thirty (30) days after the notice required under Regulation 1.411(a)-11(c) is given, provided that: (1) the Administrator clearly informs the Participant that the Participant has a right to a period of at least thirty (30) days after receiving the notice to consider the decision of whether or not to elect a distribution (and, if applicable, a particular distribution option), and (2) the Participant, after receiving the notice, affirmatively elects a distribution.
(c) If a mandatory distribution greater than $1,000 is made in accordance with the provisions of the Plan providing purchased for an automatic distribution to a Participant without the Participant’s consent, and the Participant does not elect to have such distribution paid directly to an eligible retirement plan specified by the Participant in a direct rollover (in accordance with the direct rollover provisions of the Plan) or to receive the distribution directly, then the Administrator shall direct that the distribution be made in a direct rollover to an Individual Retirement Account described in Code Section 408(a) or an Individual Retirement Annuity described in Code Section 408(b), as designated by the Administrator. The Administrator may operationally implement this provision with respect to distributions that are $1,000 or less.
(d) All annuity Contracts under this Plan shall be non-transferable when distributed. Furthermore, the terms of any annuity Contract purchased and distributed to a Participant or spouse a Participant's spouse, the annuity contract must be nontransferable. Any such annuity contract distributed shall comply with all of the requirements of the Plan.
(e) Required minimum distributions (Code Section 401(a)(9)). Notwithstanding any provision in the Plan to the contrary, the distribution of a Participant’s benefits shall be made in accordance with the requirements of Section 6.8.this Plan. Notwithstanding the above:
Appears in 1 contract
Distribution of Benefits. (a) The Administrator, pursuant to the election of the Participant (or if no election has been made prior to the Participant's death, by his Beneficiary), shall direct the Trustee to distribute to a Participant or such Participant’s his Beneficiary the any amount (if any) to which the Participant (or Beneficiary) has become he is entitled under the Plan in one or more of the following methods:
(1) One lump-sum payment in cash or in property allocated to the Participant’s Account. This shall be the normal form of payment, except as otherwise provided below.
(2) Payments over a period certain in monthly, quarterly, semiannual, or annual cash installments. In order to provide such installment payments, the Administrator may (A) segregate the aggregate amount thereof in a separate, federally insured savings account, certificate of deposit in a bank or savings and loan association, money market certificate or other liquid short-term security or (B) purchase a nontransferable annuity Contract for a term certain (with no life contingencies) providing for such payment. The period over which such payment is to be made shall not extend beyond the Participant’s life expectancy (or the life expectancy of the Participant and the Participant’s designated Beneficiary). If the value of the Participant’s Total Vested Benefit does not exceed $5,000, then distribution may only be paid as a lump-sum payment. This distribution will be made regardless of the Participant’s and the Participant’s spouse’s written consent. No distribution may be made under the preceding sentence after the Annuity Starting Date unless the Participant and the Participant’s spouse consent in writing (or in such form as permitted by the Internal Revenue Service) to such distribution.
(b) Any distribution to a Participant who has a Total Vested Benefit benefit which exceeds exceeds, or has ever exceeded, $5,000 3,500 ($5, 000 for Plan Years beginning after August 5, 1997) at the time of any prior distribution shall require such Participant’s written 's consent (or in such other form as permitted by the Internal Revenue Service) if such distribution commences occurs prior to the time the benefit is “immediately distributable.” A benefit is “immediately distributable” if any part of the benefit could be distributed to the Participant (or surviving spouse) before the Participant attains (or would have attained if not deceased) the later of the Participant’s his Normal Retirement Age or age 62. With regard to this required consent:
(1) The Participant must be informed of his right to defer receipt of the distribution. If a Participant fails to consent, it shall be deemed an election to defer the distribution of any benefit. However, any election to defer the receipt of benefits shall not apply with respect to distributions which are required under Section 7.5(e).
(2) Notice of the rights specified under this paragraph shall be provided no less than 30 days and no more than 90 days before the date the distribution commences.
(3) Written consent of the Participant to the distribution must not be made before the Participant receives the notice and must not be made more than 90 days before the date the distribution commences.
(4) No consent shall be valid if a significant detriment is imposed under the Plan on any Participant who does not consent to the distribution. Any such distribution may be made commence less than thirty (30) 30 days after the notice required under Regulation 1.411(a)-11(c) is given, provided that: (1) the Administrator clearly informs the Participant that the Participant has a right to a period of at least thirty (30) 30 days after receiving the notice to consider the decision of whether or not to elect a distribution (and, if applicable, a particular distribution option), and (2) the Participant, after receiving the notice, affirmatively elects a distribution.
(c) If a mandatory distribution greater than $1,000 is made Notwithstanding anything herein to the contrary, the Administrator, in accordance with his sole discretion, may direct that cash dividends on shares of Company Stock allocable to Participants' or Former Participants' Company Stock Accounts be distributed to such Participants or Former Participants within 90 days after the provisions close of the Plan providing for an automatic distribution to a Participant without Year in which the Participant’s consent, and the Participant does not elect to have such distribution paid directly to an eligible retirement plan specified by the Participant in a direct rollover (in accordance with the direct rollover provisions of the Plan) or to receive the distribution directly, then the Administrator shall direct that the distribution be made in a direct rollover to an Individual Retirement Account described in Code Section 408(a) or an Individual Retirement Annuity described in Code Section 408(b), as designated by the Administrator. The Administrator may operationally implement this provision with respect to distributions that dividends are $1,000 or lesspaid.
(d) All annuity Contracts under this Any part of a Participant's benefit which is retained in the Plan shall after the Anniversary Date on which his participation ends will continue to be non-transferable when distributedtreated as a Company Stock Account or as an Other Investments Account (subject to Section 7.4(a)) as provided in Article IV. FurthermoreHowever, the terms of neither account will be credited with any annuity Contract purchased and distributed to a Participant further Employer contributions or spouse shall comply with all of the requirements of the PlanForfeitures.
(e) Required minimum distributions (Code Section 401(a)(9)). Notwithstanding any provision in the Plan to the contrary, the distribution of a Participant’s 's benefits shall be made in accordance with the following requirements and shall otherwise comply with Code Section 401(a)(9) and the Regulations thereunder (including Regulation 1.401(a)(9)-2), the provisions of which are incorporated herein by reference:
(1) A Participant's benefits shall be distributed or must begin to be distributed to him not later than April 1st of the calendar year following the later of (i) the calendar year in which the Participant attains age 70 1/2 or (ii) the calendar year in which the Participant retires, provided, however, that this clause (ii) shall not apply in the case of a Participant who is a "five (5) percent owner" at any time during the five (5) Plan Year period ending in the calendar year in which he attains age 70 1/2 or, in the case of a Participant who becomes a "five (5) percent owner" during any subsequent Plan Year, clause (ii) shall no longer apply and the required beginning date shall be the April 1st of the calendar year following the calendar year in which such subsequent Plan Year ends. Such distributions shall be equal to or greater than any required distribution.
(2) Distributions to a Participant and his Beneficiaries shall only be made in accordance with the incidental death benefit requirements of Code Section 6.8401(a)(9)(G) and the Regulations thereunder.
(f) Notwithstanding any provision in the Plan to the contrary, distributions upon the death of a Participant shall be made in accordance with the following requirements and shall otherwise comply with Code Section 401 (a) (9) and the Regulations thereunder. If it is determined pursuant to Regulations that the distribution of a Participant's interest has begun and the Participant dies before his entire interest has been distributed to him, the remaining portion of such interest shall be distributed at least as rapidly as under the method of distribution selected pursuant to Section 7.5 as of his date of death. If a Participant dies before he has begun to receive any distributions of his interest under the Plan or before distributions are deemed to have begun pursuant to Regulations, then his death benefit shall be distributed to his Beneficiaries by December 31st of the calendar year in which the fifth anniversary of his date of death occurs.
Appears in 1 contract
Samples: Employee Stock Ownership Plan and Trust Agreement (Allied Capital Corp)
