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9 Cards in this Set
- Front
- Back
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When must minimum required distributions (MRD) begin?
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The calendar year in which Participant attains age 70.5 - if before June, that year, if July 1st or later, next year
April 1st (or delayed until participant retires) |
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how are MRD's calculated
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divide plan value by life expectancy under tables; recaclulate each year
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what is the effect of a spouse more than 10 years younger?
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they get the same lookup in table
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What happens if the Participant dies before the RBD (required beginning date)?
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1. spousal rollover (treat plan interest as his/her own);
2. five year rule -- if no DB, full distribution of non-spouse plan occurs within 5 years 3. life expectancy method -- distribution under DB's single life expectancy |
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How can we use life expectancies of multiple individual DBs?
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separate accounts for each DB -- use life expectancies of respective individuals
if multiple DBs in one account, oldest DB's life applies |
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What happens if Participant dies after RBD?
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1. spousal rollover
2. participant's remaining life expectancy - used if no DB 3. life expectancy method - if there is a DB, distribution based on single life expectancy. |
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when is the deadline to identify post-death DBs?
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December 31st of year FOLLOWING year of death
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How does a trust qualify as a DB trust?
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1. valid under state law
2. irrevocable at time of participant's death 3. beneficiaries are identifiable, individual benes 4. |
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conduit vs. accumulation
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conduit holds the trust and distributes to each beneficiary so they can take out per their life beneficiary (not as good for minors)
accumulation - holds on and distributes, but may be harder to figure out which one to use. |
