POST-SEVERANCE AND LIFETIME RMD DISTRIBUTION METHODS Sample Clauses
The "Post-Severance and Lifetime RMD Distribution Methods" clause defines how required minimum distributions (RMDs) from retirement accounts are to be calculated and paid both after an employee leaves employment (post-severance) and during their lifetime. It typically outlines the timing, calculation methods, and eligible distribution options, such as periodic payments or lump sums, that comply with IRS regulations. This clause ensures that distributions are made in accordance with legal requirements, helping plan sponsors and participants avoid penalties and maintain tax-advantaged status.
POST-SEVERANCE AND LIFETIME RMD DISTRIBUTION METHODS. (6.03). A Participant whose Vested Account Balance exceeds $5,000 (or any lesser amount elected in Appendix B, Election 54(g)(7)): (i) who has incurred a Severance from Employment and will receive a distribution; or (ii) who remains employed but who must receive lifetime RMDs, may elect distribution under one of the following method(s) of distribution described in Section 6.03 and subject to any Section 6.03 limitations. (Choose one or more of (a) through (f) as applicable):