Priority of Required Minimum Distribution Clause Samples

Priority of Required Minimum Distribution. If any distribution under this Article VI (by Plan provision or by Participant election or nonelection), would commence later than the Participant’s required beginning date (“RBD”), the Plan Administrator instead must direct the Trustee to make distribution on the Participant’s RBD, subject only to the TEFRA election, if applicable, under Section 6.11. The Employer in its Adoption Agreement Appendix B may elect to apply a special effective date to the RBD definition or may elect in Appendix A to continue to apply the RBD definition in effect prior to 1997 (“pre-SBJPA RBD”). The Employer in its Adoption Agreement also may elect to require distribution earlier than the RBD. (1) RBD – more than 5% owner. A Participant’s RBD is the April 1 following the close of the calendar year in which the Participant attains age 70½ if the Participant is a more than 5% owner (as defined in Code §416) with respect to the Plan Year ending in that calendar year. If a Participant is a more than 5% owner at the close of the relevant calendar year, the Participant may not discontinue required minimum distributions notwithstanding the Participant’s subsequent change in ownership status. (2) RBD – non 5% owners. If the Participant is not a more than 5% owner, his/her RBD is the April 1 following the close of the calendar year in which the Participant incurs a Separation from Service or, if later, the April 1 following the close of the calendar year in which the Participant attains age 70½. If a Participant is not a more than 5% owner, his/her pre-SBJPA RBD (if applicable) is April 1 following the close of the calendar year in which the Participant attains age 70½.