Common use of Exception for Distributions Over Life Expectancy Clause in Contracts

Exception for Distributions Over Life Expectancy. Notwithstanding subsection (b) above, the assets of the Account may be distributed to the Beneficiary in installment payments over a period certain not exceeding the Beneficiary's life expectancy, provided such distribution commences by December 31 of the calendar year immediately following the year of the Employee's death or, if the Beneficiary is the surviving spouse of the Employee, by December 31 of the later of (1) the calendar year immediately following the calendar year in which the Employee died or (2) the calendar year in which the Employee would have attained age 70- 1/2. In determining the minimum amounts required to be distributed under Section 5.4 or this Section 5.5, life expectancies of the Employee and/or the Employee's spouse may be recalculated annually in accordance with applicable regulations, but only if the Employee and/or the Employee's spouse specifically so provide in writing; life expectancies of any person other than the Employee or the Employee's spouse will not be recalculated. Notwithstanding any provision of this Agreement to the contrary, to the extent permitted under regulation, ruling procedures or notice of the Internal Revenue Service, the minimum distribution calculated in accordance with Code sections 403(b)(10) and 401(a)(9) may be taken from any 403(b) annuity or account of the Employee. The Custodian will have no responsibility for determining the required time or amount of any distribution required under such Code sections, but will make distributions only in accordance with the proper directions by the Account Holder; the Custodian will have no liability for not making a distribution in the absence of such directions and may assume that the Account Holder is satisfying any applicable minimum distribution requirement from another 403(b) annuity or custodial account. If the Beneficiary dies while receiving payments from the Account, all remaining assets in the Account shall be distributed as soon as practicable to the estate of the Beneficiary.