Non-Spousal Beneficiary. If the Beneficiary to receive the Employee’s Account following the Employee’s death is not the Employee’s surviving spouse, the rules in this subsection apply. The Beneficiary may withdraw the amount in the Account in a single sum, or in regular or irregular installment withdrawals at such times and in such amounts as the Beneficiary specifies, which can include specification of a regular program of monthly, quarterly or annual installment payments, provided that the amount withdrawn in any Beneficiary distribution calendar year satisfies the applicable requirements of Code Section 401(a)(9) and the regulations thereunder as applicable to custodial accounts operating under Code Section 403(b)(7). The first distribution calendar year to the Beneficiary is the calendar year following the year in which the Employee died. Each subsequent calendar year during the Beneficiary’s expectancy period (see below) is also a Beneficiary distribution calendar year. The required minimum distribution for any Beneficiary distribution calendar year must be withdrawn no later than the end of such year. In general, the required minimum distribution for any distribution calendar year to the Beneficiary is the balance in the Account as of the end of the preceding calendar year divided by the life expectancy of the Beneficiary determined based upon the Beneficiary’s age at his or her birthday during the calendar year following the year of the Employee’s death and reduced by one for each subsequent distribution calendar year to the Beneficiary. The life expectancy will be determined in accordance with the regulations under Code Section 401(a)(9). If the Beneficiary dies before distribution of the entire Account, required minimum distributions must continue over the remaining life expectancy period of the Beneficiary.
Non-Spousal Beneficiary. If the Beneficiary to receive the Employee’s Account following the Employee’s death is a designated beneficiary as that term is defined in Code Section 401(a)(9)(E)(i) (e.g., an individual designated beneficiary by the Employee ) but is not the Employee’s surviving spouse, the rules in this subsection apply. The Beneficiary must withdraw the entire amount in the Employee’s Account by the end of the tenth calendar year following the calendar year of the Employee’s death. Alternatively, if the Beneficiary to receive the Employee’s Account following the Employee’s death is an eligible designated beneficiary as that term is defined in Code Section 401(a)(9)(E)(ii) (e.g., an individual designated beneficiary by the Employee who is: the Employee’s minor child; disabled within the meaning of Code Section 72(m)(7); chronically ill within the meaning of Code Section 7702B(c)(2); or, is not more than ten years younger than the Employee), then the Beneficiary may elect to take withdrawals from the Employee’s Account in accordance with Code Section 401(a)(9) (and the regulations thereunder) over the life of such Beneficiary, or over a period not extending beyond the life expectancy of such Beneficiary. The withdrawals may be taken in regular or irregular installment withdrawals at such times and in such amounts as the Beneficiary specifies, which can include specification of a regular program of monthly, quarterly or annual installment payments, provided that the annual amount withdrawn in any Beneficiary distribution calendar year satisfies the minimum distribution requirements of Code Section 401(a)(9) and the regulations thereunder as applicable to custodial accounts operating under Code Section 403(b)(7). The first distribution calendar year to the Beneficiary is the calendar year following the year in which the Employee died. Each subsequent calendar year during the Beneficiary’s life expectancy period (see below) is also a Beneficiary distribution calendar year. The required minimum distribution for any Beneficiary distribution calendar year must be withdrawn no later than the end of such year. In general, the required minimum distribution for any distribution calendar year to the Beneficiary is the balance in the Account as of the end of the preceding calendar year divided by the life expectancy of the Beneficiary determined based upon the Beneficiary’s age at his or her birthday during the first distribution calendar year to the Beneficiary and reduced by one ...
Non-Spousal Beneficiary. If the Beneficiary is someone other than the deceased Certificate Owner's spouse, the following will apply:
Non-Spousal Beneficiary. Upon the Employee’s death, if the individual Beneficiary is an Eligible Designated Beneficiary other than the Employee’s surviving spouse, the Eligible Designated Beneficiary may receive distributions over the Eligible Designated Beneficiary’s remaining life expectancy as determined in the year following the death of the Employee and reduced by one for each subsequent year, starting by the end of the calendar year following the year of the Employee’s death. However, certain exceptions apply. A child who is an Eligible Designated Beneficiary at the time of the Employee’s death will cease to be an Eligible Designated Beneficiary on the date he or she reaches majority and the remaining portion of the Account on such date will be distributed within 10 years after the date he or she reaches majority. If an Eligible Designated Beneficiary dies before the Employee’s Account is entirely distributed, the remaining portion of the Account that is distributed to the beneficiary of the deceased Eligible Designated Beneficiary will be distributed by the end of the tenth year after the death of such Eligible Designated Beneficiary. The minimum amount that must be distributed each year, beginning with the year immediately following the year of the Employee’s death is the Account value at the close of business on December 31 of the immediately preceding year divided by the life expectancy (in the single life table under Treasury Regulations) of the Eligible Designated Beneficiary.
