3784. How are the minimum distribution requirements met after the death of an employee who died before his or her required beginning date?Nuco Employeercline212014-08-17T14:32:00Z2014-08-17T14:32:00Z35333040Summit Business Media257356614Site Map/Retirement Plans/Pension And Profit Sharing/Qualification/Distribution/RequiredSite Map/Retirement Plans/Quick Clicks/Required Minimum Distributions required minimum distributions RMD MRD beginning date2005-01-25T00:00:00ZTaxFactsDefaultArticle116060344-00-tf1.xml346.00;#2259;#2284;#0x010100C568DB52D9D0A14D9B2FDCC96666E9F2007948130EC3DB064584E219954237AF3900242457EFB8B24247815D688C526CD44D009C4E67E972694125ABDA91AC61F5E51FTax Facts 1How are the minimum distribution requirements met after the death of the employee?109500.000000000TaxFactsDefaultArticleSBMEDIA\moss-admin2010-01-19T08:15:18Z3784. How are the minimum distribution requirements met after the death of an employee who died before the required beginning date?If an employee dies before his or her required beginning date, distributions must be made under one of two methods:(1)Under the life expectancy rule, if any portion of the interest is payable to, or for the benefit of, a designated beneficiary, that portion must be distributed over the life (or life expectancy) of the beneficiary, beginning within one year of the employee’s death.IRC Sec. 401(a)(9)(B)(iii); Treas. Reg. §1.401(a)(9)-3, A-1(a).To the extent that the interest is payable to a non-spouse beneficiary, distributions must begin by the end of the calendar year immediately following the calendar year in which the employee died.Treas. Reg. §1.401(a)(9)-3, A-3(a). The non-spouse beneficiary’s life expectancy for this purpose is measured as of his or her birthday in the year following the year of the employee’s death. In subsequent years, this amount is reduced by one for each calendar year that has elapsed since the year immediately following the year of the employee’s death.Treas. Reg. §1.401(a)(9)-5, A-5(c)(1).(2)Under the five year rule, if there is no designated beneficiary, or if the foregoing rule is not satisfied, the entire interest must be distributed within five years after the death of the employee (regardless of who or what entity receives the distribution).IRC Sec. 401(a)(9)(B)(ii), Treas. Reg. §1.401(a)(9)-3, A-1(a). To satisfy this rule, the entire interest must be distributed by the end of the calendar year that contains the fifth anniversary of the date of the employee’s death.Treas. Reg. §1.401(a)(9)-3, A-2.Planning Point: If 2009 is one of the five years, the five year period is expanded to six years.Surviving spouse beneficiary. If the sole designated beneficiary is the employee’s surviving spouse, distributions must begin by the later of the end of the calendar year immediately following the calendar year in which the employee died or the end of the calendar year in which the employee would have reached age 70½.IRC Sec. 401(a)(9)(B)(iv); Treas. Reg. §1.401(a)(9)-3, A-3(b).In the event that a surviving spouse beneficiary dies after the employee, but before distributions to the spouse have begun, the five year rule and the life expectancy rule for surviving spouses will be applied as though the surviving spouse were the employee.IRC Sec. 401(a)(9)(B)(iv)(II); Treas. Reg. §1.401(a)(9)-3, A-5. The payout period during the surviving spouse’s life is measured by the surviving spouse’s life expectancy as of his or her birthday in each distribution calendar year for which a minimum distribution is required after the year of the employee’s death.Treas. Reg. §1.401(a)(9)-5, A-5(c)(2). The provision that treats a surviving spouse as though the surviving spouse were the employee (i.e., the surviving spouse rules of IRC Section 401(a)(9)(B)(iv)) will not allow a new spouse of the deceased employee’s spouse to continue delaying distributions.Treas. Reg. §1.401(a)(9)-3, A-5.Life expectancy tables. There are tables with single and joint and survivor life expectancies for calculating required minimum distributions, as well as a “Uniform Lifetime Table,” for determining the appropriate distribution periods.Treas. Reg. §1.401(a)(9)-9. See Appendix F.Plan provisions. Unless a plan adopts a provision specifying otherwise, if distributions to an employee have not begun prior to his or her death, they must be made automatically either under the life expectancy rule described above or, if there is no designated beneficiary, under the five year rule.Treas. Regs. §§1.401(a)(9)-1, A-3(c), 1.401(a)(9)-3, A-4(a). A plan may adopt a provision specifying that the five year rule will apply after the death of an employee, or a provision allowing employees (or beneficiaries) to elect whether the five year rule or the life expectancy rule will be applied.Treas. Regs. §§1.401(a)(9)-3, A-4(b), 1.401(a)(9)-3, A-4(c).