Distribution/RMDs Sample Clauses
The Distribution/RMDs clause outlines the rules and procedures for distributing funds from retirement accounts, specifically addressing the requirements for Required Minimum Distributions (RMDs). It typically specifies when and how account holders must begin withdrawing a minimum amount each year, often starting at a certain age as mandated by law, and may detail the calculation method for these distributions. This clause ensures compliance with tax regulations and helps prevent penalties for failing to take timely distributions, thereby providing clarity and structure for both account holders and administrators.
Distribution/RMDs. Designated IRA Contribution Accounts are distributable under Section 6.01(C)(4)(g) and are subject to the RMD requirements of Section 6.02 (and to the Adoption Agreement elections described therein) except that: (1) the Participant's RBD (only as it relates to the Designated IRA Contribution Account) is determined under Section 6.02(E)(7)(a) referencing age 70 1/2 and without regard to 5% owner or continuing employment status; (2) if the Designated IRA Contribution Account is a Ro▇▇ ▇ccount, there are no lifetime RMDs; and (3) to the extent that the provisions of Section 6.02 differ, RMDs from Designated IRA Contribution Accounts otherwise are subject to the required minimum distribution rules applicable to IRAs under Code §§408(a)(6) or 408A(c)(5) as applicable, and under the corresponding Treasury Regulations, which are incorporated by reference herein.