Minimum Annual Distributions Sample Clauses
The Minimum Annual Distributions clause requires that a specified minimum amount be distributed to beneficiaries or stakeholders each year. Typically, this applies to trusts, investment funds, or similar arrangements, ensuring that a set portion of income or assets is paid out annually rather than retained. This clause helps prevent the accumulation of funds within the entity, ensuring regular benefit to recipients and often satisfying legal or tax requirements.
Minimum Annual Distributions. Notwithstanding any provision of this Agreement to the contrary, the distribution of Your interest in the Custodial Account shall be made in accordance with the following requirements and shall otherwise comply with Code sections 457(d)(2) and 401(a)(9), the provisions
10.3.1 During Your life, a required Distribution applies beginning the year You attain age 70½ or retire, whichever is later. However, You may wait until April 1 of the following year to begin taking Distributions. If You choose to wait until April 1 of the following year to begin Distributions, another Distribution is required by December 31 of the same year. You may elect, in a manner acceptable to Us, to have the balance in the Custodial Account distributed in:
(a) A single sum or
(b) Payments over a period not longer than the life of the Participant or the joint lives of the Participant and his or her designated Beneficiary.
10.3.2 If the Participant dies before his or her entire interest is distributed to him or her, the remaining interest will be distributed as follows:
(a) If the Participant dies on or after the required beginning date:
(i) If the designated Beneficiary is the Participant’s surviving spouse, the remaining interest will be distributed over the surviving spouse’s life expectancy as determined each year until such spouse’s death, or over the period in paragraph (a)(iii) below if longer. Any interest remaining after the spouse’s death will be distributed over such spouse’s remaining life expectancy as determined in the year of the spouse’s death and reduced by 1 for each subsequent year, or, if Distributions are being made over the period in paragraph (a)(iii) below, over such period.
(ii) If the designated Beneficiary is not the Participant’s surviving spouse, the remaining interest will be distributed over the Beneficiary’s remaining life expectancy as determined in the year following the death of the Participant and reduced by 1 for each subsequent year, or over the period in paragraph (a)(iii) below if longer.
(iii) If there is no designated Beneficiary (or if longer than the period under paragraph (a)(i) or (a)(ii)), the remaining interest will be distributed over the remaining life expectancy of the Participant as determined in the year of the Participant’s death and reduced by 1 for each subsequent year.
(b) If the Participant dies before the required beginning date, the remaining interest will be distributed in accordance with (i) below or, if elected or there is ...
Minimum Annual Distributions. Subject to the other provisions of this Operating Agreement and the Act, the aggregate amount of distributions distributed by the Company to each Member in any fiscal year pursuant to this Section 7.1 shall equal at least $65,000.
Minimum Annual Distributions. During each taxable year of the Community Foundation, and subject to the provisions of article Ill above, the Community Foundation, subject to the procedures set forth herein, must distribute from the Fund to or for the benefit of one (1) or more Charitable Beneficiaries as determined above the minimum amount required by the governing instruments of the Community Foundation and by the Code and Treasury Regulations to maintain the Community Foundation as an organization (1) that is described in Section 501(c)(3) of the Code and (2) that is not a "private foundation" within the meaning of Section 509(a) of the Code. The minimum distributions required to be made during each taxable year pursuant to this paragraph A are hereafter referred to as the "Minimum Annual Distributions."