Distributions Before Death Sample Clauses
The "Distributions Before Death" clause defines how and when assets or income from a trust or estate may be distributed to beneficiaries while the primary individual (often the grantor or settlor) is still alive. Typically, this clause outlines the conditions under which such distributions can occur, such as for the beneficiary's health, education, maintenance, or support, and may specify who has the authority to approve or direct these distributions. Its core practical function is to provide clear guidelines for managing and accessing trust or estate assets prior to the death of the primary individual, thereby preventing disputes and ensuring that distributions are made in accordance with the grantor's intentions.
Distributions Before Death. (i) Notwithstanding any provision of this contract to the contrary, the distribution of the Owner’s interest in the contract shall be made in accordance with the requirements of section 401(a)(9) of the Internal Revenue Code and the regulations thereunder, the provisions of which are incorporated herein by reference. The required minimum distributions calculated for this contract can be withdrawn from another former pension annuity of the Owner.
(ii) The entire interest in the contract will commence to be distributed no later than the first day of April following the later of the calendar year in which the Owner attains age 70 1/2 or the calendar year in which the Owner retires from employment with the employer maintaining the plan (the “required beginning date”) over the life of the Owner or the lives of the Owner and his or her designated beneficiary.
(iii) The amount to be distributed each year, beginning with the first distribution calendar year and continuing through the year of death, shall not be less than the quotient obtained by dividing the interest in the contract (as determined under paragraph(b)(iii)) as of the end of the preceding year by the distribution period in the Uniform Lifetime Table in Q&A-2 of section 1.401(a)(9)-9 of the Income Tax Regulations, using the Owner’s age as of his or her birthday in the year. However, if the Owner’s sole designated beneficiary is his or her surviving spouse and such spouse is more than 10 years younger than the Owner, the distribution period is determined under the Joint and Last Survivor Table in Q&A-3 of section 1.401(a) (9)-9, using the ages as of the Owner’s and spouse’s birthdays in the year.
(iv) The required minimum distribution for the first distribution calendar year can be made as late as April 1 of the following year. The required minimum distribution for any other year must be made by the end of such year.
(v) If distributions are made in the form of an annuity on an irrevocable basis (except for acceleration), then distribution is determined as follows:
(A) The entire interest of the Owner will commence to be distributed no later than the required beginning date over: (1) the life of such Owner or the lives of such Owner and his or her designated beneficiary or (2) a period certain not extending beyond the life expectancy of such Owner and his or her designated beneficiary. Payments must be made in periodic payments at intervals of no longer than 1 year and must be either nonincreasing or t...
Distributions Before Death. (a) Notwithstanding any provision of this contract to the contrary, the distribution of the Participant's interest in the contract will be made in accordance with the requirements of Code Section 408(b)(3) and the regulations issued thereunder. If distributions are not made in the form of an annuity on an irrevocable basis (except for acceleration), then distribution of the Participant's interest in the contract (as determined above under Section 5.2(b)(3)) must satisfy the requirements of Code Section 408(a)(6) and the regulations issued thereunder, rather than the requirements of Subsections (b), (c), and (d) below and Section 5.2 above.
(b) The Participant's entire interest will begin to be distributed no later than the first day of April following the calendar year in which the Participant attains age 70 1/2 (the "required beginning date") over (1) the life of the Participant or the lives of the Participant and his designated beneficiary or (2) a period certain not extending beyond the life expectancy of the Participant or the joint and last survivor expectancy of the Participant and his designated beneficiary. Payments will be made in periodic payments at intervals of no longer than 1 year, and must be either nonincreasing or they may increase only as provided in Q&As-1 and -4 of Section 1.401(a)(9)-6T of the Temporary Income Tax Regulations. In addition, any distribution must satisfy the incidental benefit requirements specified in Q&A-2 of Section 1.401(a)(9)-6T.
(c) The distribution periods described in Subsection (b) above cannot exceed the periods specified in Section 1.401(a)(9)-6T of the Temporary Income Tax Regulations.
(d) The first required payment can be made as late as April 1 of the year following the year the Participant attains age 70 1/2, and must be the payment that is required for one payment interval. The second payment need not be made until the end of the next payment interval.]
Distributions Before Death. (a) Notwithstanding anything in the Contract to the contrary, the Owner shall begin receiving required minimum distributions (“RMDs”) as of his or her required beginning date, which is April 1 of the calendar year following attainment of age 70 1⁄2; RMDs made under this Contract will only be made in a manner consistent with Code section 401(a)(9), as modified by Code section 408(d)(3). If distributions are not made in the form of an annuity on an irrevocable basis (except for acceleration), then distribution of the interest in the ▇▇▇ must satisfy the requirements of Code § 408(a)(6) and the regulations thereunder, rather than paragraphs (b), (c) and (d) below and section 11.
Distributions Before Death. No amount is required to be distributed prior to the death of the person for whose benefit the contract was originally established. VM-YR-▇▇▇▇▇ ▇▇▇ (07) Contract Number: [C1234567 ]
Distributions Before Death. Notwithstanding any provision of this contract to the contrary, the distribution of the Participant's interest in the contract will be made in accordance with the requirements of Code Section 408(b)(3) and the regulations issued thereunder. If distributions are not made in the form of an annuity on an irrevocable basis (except for acceleration), then distribution of the Participant's interest in the contract (as determined above under Subsection (a)(3) of "Death Benefits") must satisfy the requirements of Code Section 408(a)(6) and the regulations issued thereunder, rather than the requirements of Subsections (b), (c), and (d) below and "Death Benefits" above.
Distributions Before Death. The Owner's entire interest in the policy must be distributed, or begin to be distributed, by the Owner's required beginning date, which is the April 1 following the calendar year in which the Owner reaches age 70. For each succeeding year, a distribution must be made on or before December 31. By the required beginning date, the Owner may elect to have the balance in the policy distributed in one of the following forms:
(a) a single sum payment;
(b) equal or substantially equal payments over the life of the Owner;
(c) equal or substantially equal payments over the lives of the Owner and his or her designated beneficiary;
(d) equal or substantially equal payments over a specified period that may not be longer than the Owner's life expectancy;
(e) equal or substantially equal payments over a specified period that may not be longer than the joint life and last survivor expectancy of the Owner and his or her designated beneficiary. All distributions made hereunder shall be made in accordance with section 408(a)(6) or section 408(b)(3) of the Code and the regulations thereunder, including the incidental death benefit requirements of section 401(a)(9) of the Code, the minimum distribution incidental benefit requirement of Prop. Treas. Reg. ss.1.401(a)(9)-2, and the regulations thereunder. Payments must be either non-increasing or may increase only in accordance with Prop. Treas. Reg. ss.1.401(a)(9)-1, Q&A F-3. Life expectancy is computed by use of the expected return multiples in Tables V and VI of section 1.72-9 of the Income Tax Regulations. Unless otherwise elected by the Owner by the time distributions are required to begin, life expectancies shall be recalculated annually. Such election shall be irrevocable by the individual and shall apply to all subsequent years. The life expectancy of a non-spouse beneficiary may not be recalculated. Instead, life expectancy will be calculated using the attained age of such Beneficiary during the calendar year in which the Beneficiary attains age 70 1/2, and payments for subsequent years shall be calculated based on such life expectancy reduced by one for each calendar year which has elapsed since the calendar year life expectancy was first calculated.
Distributions Before Death. (a) Notwithstanding any provision of the contract to the contrary, the distribution of the Contractholder's interest in the contract shall be made in accordance with the requirements of Code Section 408(b)(3) and the regulations thereunder, the provisions of which are herein incorporated by reference. If distributions are not made in the form of an annuity on an irrevocable basis (except for acceleration), then distribution of the interest in the contract (as determined under section 4.7(d)) must satisfy the requirements of Code Section 408(a)(6) and the regulations thereunder, rather than paragraphs (b), (c) and (d) below and section 4.7.
(b) The Contractholder's entire interest shall commence to be distributed no later than the first day of April following the calendar year in which the Contractholder attains age 70 1/2 over (1) the life of the Contractholder or the lives of the Contractholder and his designated beneficiary or (2) a period certain not extending beyond the life expectancy of the Contractholder or the joint and last survivor expectancy of the Contractholder and his designated beneficiary. Payments shall be made in periodic payments at intervals of no longer than 1 year and must be either nonincreasing or they may increase only as provided in Q&As- 1 and -4 of Section 1.401(a)(9)-6T of the Temporary Income Tax Regulations. In addition, any distribution must satisfy the incidental benefit requirements specified in Q&A-2 of Section 1.401(a)(9)-6T.
(c) The distribution periods described in (b) above cannot exceed the periods specified in Section 1.401(a)(9)-6T of the Temporary Income Tax Regulations.
(d) The first required payment can be made as late as April 1 of the year following the year the Contractholder attains age 70 1/2 and must be the payment that is required for one payment interval. The second payment need not be made until the end of the next payment interval.
Distributions Before Death. (a) Notwithstanding any provision of this contract to the contrary, the distribution of the Owner’s interest in the contract shall be made in accordance with the requirements of Code section 408(b)(3) and the regulations thereunder, the provisions of which are incorporated herein by reference. The required minimum distributions calculated for this contract can be withdrawn from another individual retirement arrangement of the Owner in accordance with Q&A-9 of section 1.408-8 of the Income Tax Regulations.
Distributions Before Death