(A) Will be distributed to such retiree not later than the required beginning date;
(B) Will be distributed, beginning not later than the required beginning date, in accordance with regulations issued by the Secretary of the Treasury, over the life of such retiree or over the lives of such retiree and a designated beneficiary (or over a period not extending beyond the life expectancy of such retiree or the life expectancy of such retiree and a designated beneficiary);
(C) If the distribution of the retiree’s interest has begun in accordance with division (B) above, and the retiree dies before his or her entire interest has been distributed to him or her, the remaining portion of such interest will be distributed at least as rapidly as under the method of distributions being used under division (B) above as of the date of his or her death;
(D) Except as provided in divisions (E) and (G) below, if a retiree dies before the distribution of the retiree’s interest has begun in accordance with division (B) above, the entire interest of the retiree will be distributed within five years after the death of such retiree;
(E) If any portion of the retiree’s interest is payable to (or for the benefit of) a designated beneficiary:
(1) Such portion will be distributed (in accordance with regulations) over the life of such designated beneficiary (or over a period not extending beyond the life expectancy of such beneficiary); and
(2) Such distributions begin not later than one year after the date of the retiree’s death or such later date as the secretary of the Treasury may by regulations prescribe.
(F) For purposes of division (D) above, the portion referred to in division (E) above shall be treated as distributed on the date on which such distributions begin;
(G) If the designated beneficiary referred to in division (E) above is the surviving spouse of the retiree:
(1) The date on which the distributions are required to begin under division (E)(2) above shall not be earlier than the date on which the retiree would have attained age 70-1/2; and
(2) If the surviving spouse dies before the distributions to such spouse begin, divisions (C), (D), (E), and (F) above shall be applied as if the surviving spouse were the retiree.
(H) For purposes of this section, the term
REQUIRED BEGINNING DATE means April 1 of the
calendar year following the later of the calendar year in which the employee attains age 70-1/2 or the calendar year in which the employee retires;
(I) For purposes of this section, the life expectancy of a retiree and the retiree’s spouse (other than in the case of a life annuity) may be redetermined but not more frequently than annually;
(J) For purposes of this section, the term
DESIGNATED BENEFICIARY means any individual designated as a beneficiary by the retiree;
(K) Under regulations prescribed by the secretary of the Treasury, for purposes of this section, any amount paid to a child shall be treated as if it had been paid to the surviving spouse if such amount will become payable to the surviving spouse upon such child reaching majority (or other designated event permitted under regulations); and
(L) For all purposes, any distribution required under the incidental death benefit requirements of § 401(a) of the Internal Revenue Code of 1986 , being 26 U.S.C. § 401(a), as amended, shall be treated as a distribution required under this section. In this regard, any annuity or installation form of payment selected by the retiree must provide that distributions will be made in accordance with the regulations of the secretary of the Treasury under such § 401(a)(9) including the incidental death benefit requirements of 26 C.F.R. § 1.401(a)(9)-2 of the regulations, the provisions of which are incorporated herein by this reference.
(Ord. 3148, passed - -1990)