Year Rule definition

Year Rule. The 5-Year Rule requires that the entire balance of your IRA be fully paid to your Beneficiary(ies) by no later than December 31 of the year containing the fifth anniversary of your death. Distributions may be made at any time during this five-year period. This method is the only method available when either there is no valid Beneficiary designation in effect as of the date of your death or you are deemed not to have a Designated Beneficiary because the Beneficiary you have designated is not an individual. Certain exceptions apply as noted elsewhere.
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Examples of Year Rule in a sentence

  • Also, even if no affirmative election was made, the insurance company that issued the Deceased Holder’s Source Contract or any Interim Source Contract must not have applied the 5 Year Rule under Section 72(s)(1)(B) of the Code.

  • Also, even if no affirmative election was made, the insurance company that issued the Deceased Holder’s Source Contract must not have applied the 5 Year Rule under Section 72(s)(1)(B) of the Code.

  • A Beneficiary or surviving Joint Owner continuing the Contract may allocate amounts to a Segment but not to a Segment Type with a duration that is longer than the remaining distribution period under the One Year Rule or the Five Year Rule, whichever is applicable.

  • Election to Apply Five (5) Year Rule to Distributions to Designated Beneficiaries: If the Participant dies before distributions begin and there is a Designated Beneficiary, distribution to the Designated Beneficiary is not required to begin by the date specified in the Basic Plan Document #01 but the Participant’s entire interest will be distributed to the Designated Beneficiary by December 31 of the calendar year containing the fifth anniversary of the Participant’s death.

  • If your spouse beneficiary elects to take distributions from the Inherited ▇▇▇▇ ▇▇▇ in accordance with the 10- Year Rule, they are not subject to a distribution requirement each year.

  • If an eligible designated beneficiary elects to take distributions from the Inherited SIMPLE IRA in accordance with the 10- Year Rule, because your death is before your required beginning date, they are not subject to a distribution requirement each year.

  • Also, even if no affirmative election was made, the insurance company that issued the Deceased Holder’s Source Contract must not have applied the Five Year Rule under Section 72(s)(1)(B) of the Code.

  • The Six Year Rule: Generally, if you only owe individual income tax, and you do not qualify for a streamlined installment agreement, you may qualify for the Six (6) Year Rule.

  • Purchase, including incidental mortgages (Personal Use Only; 2 Year Rule) Prepaid 2.

  • Election to Apply Five (5) Year Rule to Distributions to Designated Beneficiaries: If the Participant dies before distributions begin and there is a Designated Beneficiary, distribution to the Designated Beneficiary is not required to begin by the date specified in the Basic Plan Document #01 but the Participant's entire interest will be distributed to the Designated Beneficiary by December 31 of the calendar year containing the fifth anniversary of the Participant's death.

Related to Year Rule

  • Qualified elector means an individual at least 18 years of age who is a citizen of the United States, a permanent resident of this state, and a resident of the district who registers with the supervisor of elections of a county within which the district lands are located when the registration books are open.

  • Eligible child means the children of:

  • Nonrecourse Built-in Gain means with respect to any Contributed Properties or Adjusted Properties that are subject to a mortgage or pledge securing a Nonrecourse Liability, the amount of any taxable gain that would be allocated to the Partners pursuant to Section 6.2(b) if such properties were disposed of in a taxable transaction in full satisfaction of such liabilities and for no other consideration.

  • Top Heavy Plan Year means a Plan Year during which the Plan is a Top Heavy Plan.

  • Safe Harbor has the meaning set forth in Section 10.2(d).