Common use of Non-Spousal Beneficiary Clause in Contracts

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specification of a regular program of monthly, quarterly or annual installment payments, provided that the amount withdrawn in any Beneficiary distribution calendar year satisfies the applicable requirements of Code Section 401(a)(9) and the regulations thereunder as applicable to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 The required minimum distribution for any Beneficiary distribution calendar year must be withdrawn no later than the end of such year.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 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 fifth calendar year following the calendar year of the Employee’s death. Alternatively, 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 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 following to the year of the Employee’s death Beneficiary 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, an eligible inheriting beneficiary of that Beneficiary may continue to take required minimum distributions must continue over the remaining unused life expectancy period of the Beneficiary.

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 must withdraw the entire amount in the Employee’s Account by the end of the fifth calendar year following the calendar year of the Employee’s death. Alternatively, 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 pro- vided that the amount withdrawn in any Beneficiary distribution calendar year satisfies the applicable requirements of Code Section 401(a)(9) and the regulations thereunder (proposed, temporary or final as the case may be) 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 follow- ing the year in which the Employee died. Each subsequent calendar year during dur- ing 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 dis- tribution 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 birth- day during the first distribution calendar year following to the year of the Employee’s death Beneficiary 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.