Common use of Required To Begin Clause in Contracts

Required To Begin. If you die before April 1 following the year you reach age 70½ and your Beneficiary(ies) is a person or a qualified trust that “looks through” to a beneficiary that is a person, the Beneficiary may generally elect a distribution method. Your Beneficiary(ies) may elect to deplete the IRA by the end of the fifth calendar year following your death (i.e., “the five-year rule”) or to receive payments based on the designated beneficiary(ies)’s life expectancy. If life expectancy payments are elected, the payments must generally begin by December 31 of the first calendar year following your death. However, if your surviving spouse is your sole designated beneficiary, the first distribution is not required until December 31 of the year you would have attained age 70½ if later. The Beneficiaries must generally elect between the five-year rule option and the life expectancy payment option by December 31 of the year following the year of your death. However, if your spouse is your sole designated beneficiary, he or she must elect between the five-year rule option and the life expectancy payment option by the earlier of December 31 of the year containing the fifth anniversary of your death, or December 31 of the year you would have attained age 70½. If timely elections are not made, the Beneficiary is required to take distributions according to the default distribution option which is the life expectancy payment option. A Beneficiary that is not a person (except for a qualified trust that “looks through” to a beneficiary that is a person) must take distributions according to the five-year rule. If your IRA is treated as not having a designated beneficiary, for purposes of the IRS regulations, all Beneficiary(ies) must take distributions according to the five-year rule. If your surviving spouse is the sole designated beneficiary of your IRA, he or she may elect to treat your IRA as his or her own IRA by redesignating your IRA as his or her own IRA, failing to take a required distribution as a Beneficiary, or by making a contribution. Regardless of whether your spouse is the sole designated beneficiary, he or she may be eligible to roll distributions from your IRA into his or her own IRA within 60 days of receipt, and subject to any applicable limitations. If your Beneficiary(ies) does not withdraw the required amount within the prescribed timeframe, he or she may be subject to the 50% excess accumulation penalty tax on the amount that should have been withdrawn but was not distributed. The 50% excess accumulation penalty tax must be reported by filing a completed Form 5329 with the IRS along with the penalty payment.

Required To Begin. If you die before April 1 following the year you reach age 70½ and your Beneficiary(ies) is a person or a qualified trust that “looks through” to a beneficiary that is a person, the Beneficiary may generally elect a distribution method. Your Beneficiary(ies) may elect to deplete the IRA XXX by the end of the fifth calendar year following your death (i.e., “the five-year rule”) or to receive payments based on the designated beneficiary(ies)’s life expectancy. If life expectancy payments are elected, the payments must generally begin by December 31 of the first calendar year following your death. However, if your surviving spouse is your sole designated beneficiary, the first distribution is not required until December 31 of the year you would have attained age 70½ if later. The Beneficiaries must generally elect between the five-year rule option and the life expectancy payment option by December 31 of the year following the year of your death. However, if your spouse is your sole designated beneficiary, he or she must elect between the five-year rule option and the life expectancy payment option by the earlier of December 31 of the year containing the fifth anniversary of your death, or December 31 of the year you would have attained age 70½. If timely elections are not made, the Beneficiary is required to take distributions according to the default distribution option which is the life expectancy payment option. A Beneficiary that is not a person (except for a qualified trust that “looks through” to a beneficiary that is a person) must take distributions according to the five-year rule. If your IRA XXX is treated as not having a designated beneficiary, for purposes of the IRS regulations, all Beneficiary(ies) must take distributions according to the five-year rule. If your surviving spouse is the sole designated beneficiary of your IRAXXX, he or she may elect to treat your IRA XXX as his or her own IRA XXX by redesignating your IRA XXX as his or her own IRAXXX, failing to take a required distribution as a Beneficiary, or by making a contribution. Regardless of whether your spouse is the sole designated beneficiary, he or she may be eligible to roll distributions from your IRA XXX into his or her own IRA XXX within 60 days of receipt, and subject to any applicable limitations. If your Beneficiary(ies) does not withdraw the required amount within the prescribed timeframe, he or she may be subject to the 50% excess accumulation penalty tax on the amount that should have been withdrawn but was not distributed. The 50% excess accumulation penalty tax must be reported by filing a completed Form 5329 with the IRS along with the penalty payment.

Required To Begin. If you die before April 1 following the year you reach age 70½ and your Beneficiary(ies) is a person or a qualified trust that “looks through” to a beneficiary that is a person, the Beneficiary may generally elect a distribution method. Your Beneficiary(ies) may elect to deplete the IRA XXX by the end of the fifth calendar year following your death (i.e., “the five-year rule”) or to receive payments based on the designated beneficiary(ies)’s life expectancy. If life expectancy payments are elected, the payments must generally begin by December 31 of the first calendar year following your death. However, if your surviving spouse is your sole designated beneficiary, the first distribution is not required until December 31 of the year you would have attained age 70½ if later. The Beneficiaries must generally elect between the five-year rule option and the life expectancy payment option by December 31 of the year following the year of your death. However, if your spouse is your sole designated beneficiary, he or she must elect between the five-year rule option and the life expectancy payment option by the earlier of December 31 of the year containing the fifth anniversary of your death, or December 31 of the year you would have attained age 70½. If timely elections are not made, the Beneficiary is required to take distributions according to the default distribution option which is the life expectancy payment option. A Beneficiary that is not a person (except for of a qualified trust that “looks through” to a beneficiary that is a person) must take distributions according to the five-year rule. If your IRA XXX is treated as not having a designated beneficiary, for purposes of the IRS regulations, all Beneficiary(ies) must take distributions according to the five-year rule. If your surviving spouse is the sole designated beneficiary of your IRAXXX, he or she may elect to treat your IRA XXX as his or her own IRA XXX by redesignating your IRA XXX as his or her own IRAXXX, failing to take a required distribution as a Beneficiary, or by making a contribution. Regardless of whether your spouse is the sole designated beneficiary, he or she may be eligible to roll distributions from your IRA XXX into his or her own IRA XXX within 60 days of receipt, and subject to any applicable limitations. If your Beneficiary(ies) does not withdraw the required amount within the prescribed timeframe, he or she may be subject to the 50% excess accumulation penalty tax on the amount that should have been withdrawn but was not distributed. The 50% excess accumulation penalty tax must be reported by filing a completed Form 5329 with the IRS along with the penalty payment.

Required To Begin. If you die before April 1 following the year you reach age 70½ and your Beneficiary(ies) is a person or a qualified trust that “looks through” to a beneficiary that is a person, the Beneficiary may generally elect a distribution method. Your Beneficiary(ies) may elect to deplete the IRA by the end of the fifth calendar year following your death (i.e., “the five-year rule”) or to receive payments based on the designated beneficiary(ies)’s life expectancy. If life expectancy payments are elected, the payments must generally begin by December 31 of the first calendar year following your death. However, if your surviving spouse is your sole designated beneficiary, the first distribution is not required until December 31 of the year you would have attained age 70½ if later. The Beneficiaries must generally elect between the five-year rule option and the life expectancy payment option by December 31 of the year following the year of your death. However, if your spouse is your sole designated beneficiary, he or she must elect between the five-year rule option and the life expectancy payment option by the earlier of December 31 of the year containing the fifth anniversary of your death, or December 31 of the year you would have attained age 70½. If timely elections are not made, the Beneficiary is required to take distributions according to the default distribution option which is the life expectancy payment option. A Beneficiary that is not a person (except for of a qualified trust that “looks through” to a beneficiary that is a person) must take distributions according to the five-year rule. If your IRA is treated as not having a designated beneficiary, for purposes of the IRS regulations, all Beneficiary(ies) must take distributions according to the five-year rule. If your surviving spouse is the sole designated beneficiary of your IRA, he or she may elect to treat your IRA as his or her own IRA by redesignating your IRA as his or her own IRA, failing to take a required distribution as a Beneficiary, or by making a contribution. Regardless of whether your spouse is the sole designated beneficiary, he or she may be eligible to roll distributions from your IRA into his or her own IRA within 60 days of receipt, and subject to any applicable limitations. If your Beneficiary(ies) does not withdraw the required amount within the prescribed timeframe, he or she may be subject to the 50% excess accumulation penalty tax on the amount that should have been withdrawn but was not distributed. The 50% excess accumulation penalty tax must be reported by filing a completed Form 5329 with the IRS along with the penalty payment.