Life and Death Planning for Retirement Benefits

Chapter 1: The Minimum Distribution Rules

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for purposes of these rules, until September 30 of the year following the year of the participant’s death; see ¶ 1.8.03 . Accordingly, the “quiz answers” in ¶ 1.5.03 (B)–(F) or ¶ 1.5.04 (B)–(F) apply once the identity of the beneficiary is finalized on September 30 of the year following the year of the participant’s death. Your choices for completing Step 6 are: the participant’s surviving spouse ( ¶ 1.6.02 ); an individual who is not the participant’s surviving spouse ( ¶ 1.7.03 ); a see-through trust ( ¶ 6.2.03 ); an estate, non-see-through trust, or other nonindividual beneficiary ( ¶ 1.7.04 ); and multiple beneficiaries (i.e., any combination of the foregoing) ( ¶ 1.7.05 ).

Step 7: Compute the RMDs

If the beneficiary is ...

...and the participant died before the RBD, see:

...and the participant died after the RBD, see:

Year of participant’s death:

Any beneficiary

N/A; no RMD. ¶ 1.5.03 (A).

¶ 1.5.04 (A).

Later years:

The participant’s surviving spouse

¶ 1.5.03 (B)

¶ 1.5.04 (B)

An individual (not the surviving spouse)

¶ 1.5.03 (C)

¶ 1.5.04 (C)

See-through trust

¶ 1.5.03 (D)

¶ 1.5.04 (D)

Participant’s estate; a non- see-through trust; any nonindividual beneficiary.

¶ 1.5.03 (E); 5-year rule applies ( ¶ 1.5.06 )

¶ 1.5.04 (E); life expectancy of participant ( ¶ 1.5.08 )

Multiple beneficiaries

¶ 1.5.03 (F)

¶ 1.5.04 (F)

Road Map, cont.: RMDs in case of death BEFORE the RBD

To determine required distributions for retirement benefits of a participant who died before his RBD, first complete the steps at ¶ 1.5.02 . Then read this ¶ 1.5.03 . First read the general comments and caveats, and paragraph A. Then read the particular paragraph (B–F) that describes the beneficiary. See ¶ 1.5.02 , Step 3, for explanation of the RBD.