For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
APPLICABLE LIFE EXPECTANCY.
(1) For a retirement distribution, the following apply.
(a) Unless the participant elects that recalculation not apply or that recalculation apply only to one life of a joint and last survivor life expectancy, life expectancy as so recalculated each calendar year.
(b) If the participant elects that recalculation not apply as to a measuring life, the applicable life expectancy is the life expectancy (or joint and last survivor life expectancy) calculated using the attained age of the participant or of the designated beneficiary or of the participant and the designated beneficiary as of his, her or their birthday(s) in the applicable calendar year reduced by one for each calendar year which has elapsed since the date the life expectancy was first calculated.
(c) To the extent that the participant elects that recalculation not apply, the applicable calendar year is the first distribution calendar year. To the extent that recalculation is elected or otherwise applies, the applicable calendar year is the first distribution calendar year and each succeeding calendar year. If annuity payments commence according to § 35.083 before the required beginning date, the applicable calendar year is the year of purchase.
(2) For a death distribution, the following applies.
(a) Unless the beneficiary elects otherwise, the life expectancy (or joint and last survivor life expectancy) calculated using the attained age of the designated beneficiary as of his or her birthday in the applicable calendar year reduced by one for each calendar year which has elapsed since the date the life expectancy was first calculated.
(b) If the beneficiary elects recalculation of life expectancy, the applicable life expectancy is the life expectancy as so recalculated.
(c) The applicable calendar year shall be the first distribution calendar year, and if life expectancy is being recalculated, each succeeding distribution calendar year. If distribution is in the form of an immediate annuity purchased (with the participant’s account) after the participant’s death, the applicable calendar year is the year of purchase.
DESIGNATED BENEFICIARY.
(1) The beneficiary, unless the Plan Administrator determines that the beneficiary is not a DESIGNATED BENEFICIARY within the meaning of Treasury Reg. § 1.40 1(a)(9)-1D.
(2) If a DESIGNATED BENEFICIARY is a trust or trustee, for purposes of making any determination based upon life expectancy (including, but not limited to, a determination of applicable life expectancy), DESIGNATED BENEFICIARY refers to the natural person having a beneficial interest in the trust who has the shortest life expectancy at the time that the determination is made. For all other purposes, including (but not limited to) the exercise of any rights or powers under the plan and the receipt of any distribution, beneficiary and designated beneficiary refer to the trustee.
DISTRIBUTION CALENDAR YEAR. A calendar year for which a minimum distribution is required.
(1) Retirement distribution. For a distribution that begins before the participant’s death, the first distribution calendar year is the calendar year immediately preceding the calendar year that contains the participant’s required beginning date.
(2) Death distribution. For a distribution that begins after the participant’s death, the first distribution calendar year is the calendar year in which distributions are required to begin according to § 35.084.
LIFE EXPECTANCY. The life expectancy or joint and last survivor life expectancy computed by use of the expected return multiples in (IRS) Table V or Table VI under Treasury Reg. § 1.72-9 or under any other method permitted by Treasury Regulations under I.R.C. § 401(a)(9).
(1) For a retirement distribution, the participant may elect whether or not to recalculate life expectancy (or any measuring life or element of it) to the extent permitted by I.R.C. § 401(a)(9)(D). The life expectancy of a non-spouse beneficiary cannot be recalculated.
(2) For a death distribution, each spouse beneficiary may elect whether or not to recalculate his or her life expectancy to the extent permitted by I.R.C. § 401(a)(9)(D). The life expectancy of a non-spouse beneficiary cannot be recalculated.
(3) Any election concerning whether or not to recalculate life expectancy (or any measuring life or element of it) is irrevocable and applies to all subsequent years.
(4) This election must be made not later than the date that is 90 days before the required beginning date. As to a retirement distribution, if this election is not timely made, a participant is deemed to have elected that recalculation of the participant’s life expectancy apply and that recalculation of his or her spouse’s life expectancy not apply. As to a death distribution, if this election is not timely made, the spouse beneficiary is deemed to have elected that recalculation not apply.
MDIB ACCOUNT.
(1) For the purpose of calculating a required minimum distribution, the participant’s account (or the beneficiary’s segregated account) as of the last valuation date (normally December 31) in the valuation calendar year increased by the amount of any contributions allocated to the account after the valuation date but as of a date in the valuation calendar year and decreased by the amount of any distributions made from the account after the valuation date but as of a date in the valuation calendar year.
(2) Solely for the purpose of this definition, if any portion of the minimum distribution for the first distribution calendar year is made in the second distribution calendar year not later than the required beginning date, the amount of that minimum distribution shall be treated as if it had been made in the first distribution calendar year.
REQUIRED BEGINNING DATE. Consistent with the requirements of I.R.C. § 401(a)(9)(C), the applicable date provided by the appropriate subsection below or the other date required or any other date permitted under I.R.C. § 401(a)(9).
(1) For a retirement distribution. The REQUIRED BEGINNING DATE for a retirement distribution is April 1 of the calendar year following the later of the calendar year during which the participant attains age 70 and one-half or the calendar year in which the participant retires.
(2) For a death distribution if the beneficiary is the surviving spouse. The REQUIRED BEGINNING DATE for a death distribution is the later of December 31 of the calendar year immediately following the calendar year during which the participant’s death occurred, and December 31 of the calendar year during which the participant would have attained age 70 and one-half.
(3) For a death distribution if the beneficiary is not the surviving spouse. The required beginning date for a death distribution is December 31 of the calendar year immediately following the calendar year during which the participant’s death occurs.
VALUATION CALENDAR YEAR. The calendar year immediately preceding the distribution calendar year.
(Ord. NIRC 97-1, passed 1-15-1997)