(a) Generally. Except as otherwise set forth in this subtitle, distribution of the vested portion of a participant's plan account may be made or may commence following the participant's termination of employment for any reason and as soon as is practicable after arrangements for payment have been made by the Administrator and the trustee, provided that the participant may elect to defer the distribution until a date which is no later than the participant's required distribution commencement date under § 6-6-304.
(b) Payment.
(1) The normal form of benefit under the plan is a lump sum.
(2) Except as set forth in this subtitle, in lieu of receiving the normal form of benefit provided in subsection (b)(1), a participant may elect to receive distribution in periodic withdrawals of the same or varying amounts, subject to the requirements of § 6-6-304.
(3) Election of the form of payment must be in writing on a form provided by the Administrator and filed with the Administrator prior to the commencement of retirement benefit payments. If no election is made, then a lump sum payment shall be deemed to have been elected by the participant.
(c) Notwithstanding any other provision of this title to the contrary, if the present value of the vested portion of a participant's plan account to be distributed does not exceed $5,000 on the date the distribution commences pursuant to this article, such participant's vested plan account shall be distributed in a lump sum as soon as practicable after the date on which the participant becomes entitled to the distribution.
(Bill No. 95-17)