[Federal Register Volume 67, Number 74 (Wednesday, April 17, 2002)]
[Rules and Regulations]
[Pages 18988-19028]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-8963]
[[Page 18987]]
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Part II
Department of the Treasury
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Internal Revenue Service
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26 CFR Parts 1, 54, and 602
Required Distributions From Retirement Plans; Final Rule
Federal Register / Vol. 67, No. 74 / Wednesday, April 17, 2002 /
Rules and Regulations
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1, 54, and 602
[TD 8987]
RIN 1545-AY69, 1545-AY70
Required Distributions From Retirement Plans
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final and temporary regulations.
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SUMMARY: This document contains final and temporary regulations
relating to required minimum distributions from qualified plans,
individual retirement plans, deferred compensation plans under section
457, and section 403(b) annuity contracts, custodial accounts, and
retirement income accounts. These regulations will provide the public
with guidance necessary to comply with the law and will affect
administrators of, participants in, and beneficiaries of qualified
plans; institutions that sponsor and individuals who administer
individual retirement plans, individuals who use individual retirement
plans for retirement income, and beneficiaries of individual retirement
plans; and employees for whom amounts are contributed to section 403(b)
annuity contracts, custodial accounts, or retirement income accounts
and beneficiaries of such contracts and accounts. The text of the
temporary regulations also serves as the text of the proposed
regulations set forth in the notice of proposed rulemaking on this
subject in the Proposed Rules section of the Federal Register.
EFFECTIVE DATE: These regulations are effective January 1, 2003.
FOR FURTHER INFORMATION CONTACT: Cathy A. Vohs, 202-622-6090 (Not a
toll free number).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The collections of information contained in these final regulations
have been reviewed and approved by the Office of Management and Budget
in accordance with the Paperwork Reduction Act (44 U.S.C. 3507) under
control number 1545-0996, in conjunction with the notice of proposed
rulemaking published on July 27, 1987, 52 FR 28070, REG-EE-113-82,
Required Distributions From Qualified Plans and Individual Retirement
Plans, under control number 1545-1466 for Third-Party Disclosure
Requirements in IRS Regulations, and control number 1545-1573, in
conjunction with the notice of proposed rulemaking published on
December 30, 1997, 62 FR 67780, REG-209463-82, Required Distributions
from Qualified Plans and Individual Retirement Plans. Responses to the
collections of information under control numbers 1545-0996 and 1545-
1466 are mandatory. Responses to the collection of information under
control number 1545-1573 are required to obtain the benefit of a trust
being treated as a designated beneficiary under a retirement plan.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless the collection of
information displays a valid control number assigned by the Office of
Management and Budget.
The estimated annual burden per respondent under control number
1545-0996 is 1 hour.
The estimated annual burden per respondent under control number
1545-1466 is 9 minutes.
The estimated annual burden per respondent under control number
1545-1573 is 20 minutes.
Comments concerning the accuracy of this burden estimate and
suggestions for reducing this burden should be sent to the Internal
Revenue Service, Attn: IRS Reports Clearance Officer, W:CAR:MP:FP:S
Washington, DC 20224, and to the Office of Management and Budget, Attn:
Desk Officer for the Department of the Treasury, Office of Information
and Regulatory Affairs, Washington, DC 20503.
Books or records relating to this collection of information must be
retained as long as their contents may become material in the
administration of any internal revenue law. Generally, tax returns and
tax return information are confidential, as required by 26 U.S.C. 6103.
Background
This document contains amendments to the Income Tax Regulations (26
CFR Part 1) and to the Pension Excise Tax Regulations (26 CFR Part 54)
under sections 401, 403, 408, and 4974 of the Internal Revenue Code of
1986 (Code). These amendments conform the regulations to section 634 of
the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA)
(115 Stat. 117), section 1404 of the Small Business Job Protection Act
of 1996 (SBJPA) (110 Stat. 1791), sections 1121 and 1852 of the Tax
Reform Act of 1986 (TRA of 1986) (100 Stat. 2464 and 2864), sections
521 and 713 of the Tax Reform Act of 1984 (TRA of 1984) (98 Stat. 865
and 955), and sections 242 and 243 of the Tax Equity and Fiscal
Responsibility Act of 1982 (TEFRA) (96 Stat. 521). The regulations
provide guidance on the minimum distribution requirements under section
401(a)(9) for plans qualified under section 401(a) and for other
arrangements that incorporate the section 401(a)(9) rules by reference.
The section 401(a)(9) rules are incorporated by reference in section
408(a)(6) and (b)(3) for individual retirement accounts and annuities
(IRAs) (including Roth IRAs, except as provided in section 408A(c)(5)),
section 403(b)(10) for section 403(b) annuity contracts, and section
457(d) for eligible deferred compensation plans.
For purposes of this discussion of the background of the
regulations in this preamble, as well as the explanation of provisions
below, whenever the term employee is used, it is intended to include
not only an employee but also an IRA owner.
Section 401(a)(9) provides rules for distributions during the life
of the employee in section 401(a)(9)(A) and rules for distributions
after the death of the employee in section 401(a)(9)(B). Section
401(a)(9)(A)(ii) provides that the entire interest of an employee in a
qualified plan must be distributed, beginning not later than the
employee's required beginning date, in accordance with regulations,
over the life of the employee or over the lives of the employee and a
designated beneficiary (or over a period not extending beyond the life
expectancy of the employee and a designated beneficiary).
Section 401(a)(9)(C) defines required beginning date for employees
(other than 5-percent owners and IRA owners) as 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.
For 5-percent owners and IRA owners, the required beginning date is
April 1 of the calendar year following the calendar year in which the
employee attains age 70\1/2\, even if the employee has not retired.
Section 401(a)(9)(D) provides that (except in the case of a life
annuity) the life expectancy of an employee and the employee's spouse
that is used to determine the period over which payments must be made
may be redetermined, but not more frequently than annually.
Section 401(a)(9)(E) provides that the term designated beneficiary
means any individual designated as a beneficiary by the employee.
Section 401(a)(9)(G) provides that any distribution required to
satisfy the incidental death benefit requirement of
[[Page 18989]]
section 401(a) is a required minimum distribution.
Section 401(a)(9)(B)(i) provides that, if the employee dies after
distributions have begun, the employee's interest must be distributed
at least as rapidly as under the method used by the employee.
Section 401(a)(9)(B)(ii) and (iii) provides that, if the employee
dies before required minimum distributions have begun, the employee's
interest must be either: distributed (in accordance with regulations)
over the life or life expectancy of the designated beneficiary with the
distributions beginning no later than 1 year after the date of the
employee's death, or distributed within 5 years after the death of the
employee. However, under section 401(a)(9)(B)(iv), a surviving spouse
may wait until the date the employee would have attained age 70\1/2\ to
begin taking required minimum distributions.
Comprehensive proposed regulations under section 401(a)(9) were
previously published in the Federal Register on January 17, 2001 (REG-
130477-00/REG-130481-00; 66 FR 3928) and July 27, 1987 (EE-113-82; 52
FR 28070). The proposed regulations published in 2001 substantially
simplified the rules for determining required minimum distributions for
separate accounts provided in the 1987 proposed regulations. The public
reaction to this simplification was very favorable. Consequently, these
final regulations adopt the simplified rules in the 2001 proposed
regulations for separate accounts, with the modifications described
below in the Explanation of Provisions. These regulations continue to
incorporate, with some modifications, applicable previously issued
guidance (i.e., Notice 83-23 (1983-2 C.B. 418), Notice 88-38 (1988-1
C.B. 524), Notice 96-67 (1996-2 C. B. 235), and Notice 97-75 (1997-2
C.B. 337)). To the extent not modified or superceded by these
regulations, the guidance in Notice 83-23 and Notice 97-75 remains in
effect. For example, if an employer uses the same required beginning
date for all employees regardless of whether the employee has retired
by age 70\1/2\, during the period before an employee retires, the
employee may determine the portion of any distribution that is eligible
for rollover using the statutory definition of required beginning date.
With respect to annuity payments, the 2001 proposed regulations
retained the basic structure of the 1987 proposed regulation. The
preamble to the 2001 proposed regulations indicated that the IRS and
Treasury were continuing to study these rules and specifically
requested updated comments on current practices and issues relating to
required minimum distributions from annuity contracts. Commentators
provided information on the variety of annuity contracts being
developed and available as insurance company products for purchase with
separate accounts. In response to the comments received, temporary
regulations under Sec. 1.401(a)(9)-6T significantly expand the
situations in which annuity payments under annuity contracts purchased
with an employee's benefit may provide for increasing payments. These
regulations are being issued in proposed (REG-108697-02) and temporary
form rather than final form in order to give taxpayers an opportunity
to comment on these changes.
Explanation of Provisions
Uniform Lifetime Table
These final regulations retain the simplifications to the minimum
distribution rules for separate accounts provided in the 2001 proposed
regulations, including the calculation of the required minimum
distribution during the individual's lifetime using a uniform table.
The basic calculation for individual accounts provides that the
required minimum distribution is determined by dividing the account
balance by the distribution period. For lifetime required minimum
distributions, there is a uniform distribution period for almost all
employees of the same age. The uniform lifetime distribution period
table is based on the joint life and last survivor expectancy of an
individual and a hypothetical beneficiary 10 years younger. However, if
the employee's sole beneficiary is the employee's spouse and the spouse
is more than 10 years younger than the employee, a longer distribution
period measured by the joint life and last survivor life expectancy of
the employee and spouse is permitted to be used.
For years after the year of the employee's death, the distribution
period is generally the remaining life expectancy of the designated
beneficiary. The beneficiary's remaining life expectancy is calculated
using the age of the beneficiary in the year following the year of the
employee's death, reduced by one for each subsequent year. If the
employee's spouse is the employee's sole beneficiary, the distribution
period during the spouse's life is the spouse's single life expectancy.
For years after the year of the spouse's death, the distribution period
is the spouse's life expectancy calculated in the year of death,
reduced by one for each subsequent year. If there is no designated
beneficiary, the distribution period is the employee's life expectancy
calculated in the year of death, reduced by one for each subsequent
year.
New Mortality Tables
The 2001 proposed regulations provided that the life expectancies
for purposes of section 401(a)(9) would be determined using the
expected return multiples set forth in the regulations under section 72
that are used for other purposes under the Code. These tables, based
upon the experience reflected in the 1983 individual annuity mortality
table (without load), were adopted for purposes of section 72 in 1986
and had been used in both the 1987 proposed regulations and the 2001
proposed regulations under section 401(a)(9).
Section 634 of EGTRRA instructed the Secretary of Treasury to
modify the life expectancy tables used for purposes of the minimum
distribution rules to reflect current life expectancy. In accordance
with that instruction, the final regulations adopt new tables of life
expectancies to be used for determining required minimum distributions.
The new tables were derived by starting with the basic 2000
individual annuity mortality table and projecting mortality improvement
for the period 2000 through 2003 using the assumed mortality
improvement factors that were adopted in developing the Annuity 2000
mortality table. The resulting mortality rates were blended using a
fixed 50% male 50% female blend. The uniform lifetime table provided in
these final regulations has also been adjusted to reflect these new
mortality tables.
These new tables also may be used to determine an employee's (or
IRA owner's) life expectancy, or the joint life and last survivor
expectancy of an employee (or IRA owner) and designated beneficiary,
for purposes of calculating the amount of substantially equal periodic
payments under section 72(t)(2)(A)(iv) when applying a method permitted
under A-12 of Notice 89-25 (1989-1 C.B. 662, 666). One of these methods
allows use of the methodology underlying the minimum distribution
calculations for separate accounts in which the account balance in the
prior year is divided by life expectancy or joint life and last
survivor expectancy. Under this method, the payments are not equal but
are treated as substantially equal if the life expectancy is determined
in a consistent manner. A series of substantially equal periodic
payments under section 72(t)(2)(A)(iv) determined under this
methodology will not be considered to have been modified
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merely because the new tables are used in the future to determine the
annual periodic payments rather than the tables in the regulations
under section 72.
Determination of the Designated Beneficiary
The 2001 proposed regulations provided that, generally, the
designated beneficiary is determined as of the end of the year
following the year of the employee's death. Thus, any beneficiary
eliminated by distribution of the beneficiary's benefit or through
disclaimer during the period between the employee's death and the end
of the year following the year of death is disregarded in determining
the employee's designated beneficiary for purposes of calculating
required minimum distributions. If, as of the end of the year following
the year of the employee's death, the employee has more than one
designated beneficiary and the account or benefit has not been divided
into separate accounts or shares for each beneficiary, the beneficiary
with the shortest life expectancy is the designated beneficiary.
Further, if a person other than an individual is a beneficiary as of
that date, the employee is treated as not having a beneficiary (except
as provided below with respect to trusts).
Commentators applauded the basic principle of the approach in the
2001 proposed regulations but suggested that the designated beneficiary
determination should be made before the end of the year following the
year of death so that there will be adequate time to calculate and
distribute the required minimum amount between the date the beneficiary
determination is finalized and the end of the year following the year
of the employee's death (i.e., the date that required minimum
distributions to nonspouse designated beneficiaries must commence). In
response to these comments, the date for determining the designated
beneficiary has been changed to September 30 of the year following the
year of the employee's death. In response to comments, these final
regulations clarify that in order for a beneficiary to disclaim
entitlement to a benefit for purposes of section 401(a)(9), the
disclaimer must satisfy section 2518. Finally, the final regulations
clarify that if a designated beneficiary dies during the period between
the employee's date of death and September 30 of the year following the
year of the employee's death, the individual continues to be treated as
the designated beneficiary for purposes of determining the distribution
period rather than the successor beneficiary.
Some commentators requested that final regulations provide that, if
the employee's estate was named as the beneficiary in the beneficiary
designation or the employee's estate became beneficiary by operation of
law, the beneficiary of the estate or the beneficiary of the IRA named
under the employee's will could replace the estate as beneficiary by
September 30 of the year following the year of death. This change is
not being adopted in these final regulations. The period between death
and the beneficiary determination date is a period during which
beneficiaries can be eliminated but not replaced with a beneficiary not
designated under the plan as of the date of death. In order for an
individual to be a designated beneficiary, any beneficiary must be
designated under the plan or named by the employee as of the date of
death.
These regulations retain the rule in the proposed regulations that,
in determining an employee's beneficiaries for purposes of applying the
multiple beneficiary rule or determining if the employee's spouse is
the employee's sole beneficiary, all beneficiaries of the employee's
interest in the plan, including contingent beneficiaries, are taken
into account. The regulations also retain the exception to this rule
under which, if a beneficiary (subsequent beneficiary) is entitled to
any portion of an employee's benefit only if another beneficiary dies
before the entire benefit to which that other beneficiary is entitled
has been distributed by the plan, the subsequent beneficiary will not
be considered a beneficiary. However, these regulations clarify that
the exception from the multiple beneficiary rules for death
contingencies only applies to a person who could be entitled to a
portion of the employee's benefit by becoming the successor to the
interest of one of the employee's beneficiaries after that
beneficiary's death. The regulations provide that this rule does not
apply to a person who has any right (including a contingent right) to
an employee's benefit beyond being a mere potential successor to the
interest of one of the employee's beneficiaries upon that beneficiary's
death. Thus, for example, if one beneficiary has a right to any income
on an employee's individual account during that beneficiary's life and
another beneficiary has a right to the principal but only after the
death of the income beneficiary (with any portion of the principal
distributed during the life of the income beneficiary to be held in
trust until that beneficiary's death), both beneficiaries must be taken
into account in determining the beneficiary with the shortest life
expectancy and whether only individuals are beneficiaries.
Default Rule for Post-Death Distributions
These regulations, as did the 2001 proposed regulations, provide
that, if an employee dies before the employee's required beginning date
and the employee has a designated beneficiary, then the life expectancy
rule in section 401(a)(9)(B)(iii) (rather than the 5-year rule in
section 401(a)(9)(B)(ii)) is the default distribution rule. Thus,
absent a plan provision or election of the 5-year rule, the life
expectancy rule applies in all cases in which the employee has a
designated beneficiary, and the 5-year rule applies if the employee
does not have a designated beneficiary. This is a change from the
position in the 1987 proposed regulations that provided the 5-year rule
as the default unless the spouse was the sole beneficiary. Commentators
pointed out that, as a result of the default rule under the 1987
regulations, some beneficiaries did not commence distributions under
the life expectancy rules. In response to those comments, these final
regulations provide a transition rule that permits beneficiaries
subject to the 5-year rule under the 1987 proposed regulations to
switch to the life expectancy rule, provided that all amounts that
would have been required to be distributed under an application of the
life expectancy rule are distributed by the earlier of December 31,
2003 or the end of the 5-year period following the year of the
employee's death.
Temporary Rules for Defined Benefit Plans and Annuity Contracts
These temporary regulations provide a number of changes to the
annuity rules provided in the 2001 proposed regulations including
changes designed to make the rules more consistent with the rules for
individual accounts and reflect new product designs. In order to allow
taxpayers to comment on these changes, the section of the regulations
governing defined benefit plans and annuities is being issued as
temporary and proposed regulations rather than final regulations.
In response to comments, the following changes are being made.
First, annuity payments are permitted to be provided for a period
certain that is as long as the period under the uniform lifetime table
for the employee's age in the year in which the annuity starting date
occurs, regardless of who is the employee's designated beneficiary.
Further, the period does not change upon the death of the employee even
if
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the remaining period certain is longer or shorter than the
beneficiary's single life expectancy. The same rule applies if the
annuity also includes a life annuity or a joint and survivor annuity.
If the employee's sole designated beneficiary is the employee's spouse,
if the spouse is more than 10 years younger than the employee, and if
the annuity is only for a period certain and does not have a life
contingent element, the period certain can be as long as the joint life
and last survivor expectancy of the employee and the employee's spouse.
These temporary regulations retain the rules in the 2001 proposed
regulations interpreting the minimum distribution incidental benefit
requirement. Under these rules, if the survivor of a joint and survivor
annuity is not the employee's spouse and if the survivor annuitant is
more than 10 years younger than the employee, then the survivor portion
must be less than 100% of the employee's benefit. In such a case, the
survivor annuity must be reduced so that it does not exceed the
employee's benefit multiplied by the percentage provided in the table
in the regulations. However, the regulations clarify that if the joint
and survivor annuity also has a period certain, the reduction in
survivor annuity is only required after expiration of the period
certain.
Further, in response to comments, the temporary regulations make a
number of changes that expand the situations in which increasing
annuity payments are permitted. The additional situations are generally
only available to annuities purchased from insurance companies.
Under these temporary regulations, an annuity purchased from an
insurance company can increase annually by a constant percentage,
provided that the initial payment is sufficiently large that the total
expected payments, determined without regard to these increases, exceed
the account value being annuitized. This minimum payment requirement,
together with the adverse economic interests of the insurer and the
annuity purchaser, effectively limits the constant percentage increase
under an annuity to the assumed interest rate used in pricing the
annuity.
These temporary regulations also provide explicit rules relating to
the payments of dividends under participating annuity contracts. Under
the temporary regulations, a variation in the amount of the annuity
payment (referred to as a dividend or other payment resulting from
favorable actuarial experience) can be made provided that: (1) The
initial payment meets the minimum threshold described above, (2)
actuarial experience is measured at least annually, and (3) the
resulting dividend payment or other payment is either paid no later
than the year following the year for which the actuarial experience is
measured or is payable in the same form as the payment of the annuity
over the remaining period of the annuity. These requirements are
intended to preclude backloading of the distribution stream through the
use of conservative pricing assumptions where actuarial gains with
respect to those assumptions are deferred and paid at a later date. The
definition of dividend or other payment resulting from actuarial gain
is broad enough to encompass the contractual adjustment provided for in
a variable annuity. Accordingly, the rules that permitted payments that
vary with the investment performance of underlying assets has been
replaced with this more general construct.
The temporary regulations allow full and partial withdrawals from
purchased annuities in certain circumstances. The restrictions on these
withdrawals are intended to preclude the use of a withdrawal or cash-
out feature as a mechanism to distribute deferred actuarial gains. In
the case of a full withdrawal (including a death benefit), the
distribution must not exceed the expected future payments under the
contract, taking into account the annuitants who are still alive and
any remaining period certain, but without regard to any future
increases. In the case of a partial withdrawal, the full withdrawal
under the terms of the contract must satisfy the preceding sentence
and, after the partial withdrawal, all future annuity payments must be
reduced proportionately based on the ratio of the partial withdrawal to
the maximum withdrawal under the terms of the contract.
As discussed above, these permitted increases are only available
for insurance company products and not a distribution stream provided
from a section 401(a) defined benefit trust. In addition, these
temporary regulations do not permit annuity payments that vary with the
value of the underlying assets of the plan to be provided by a defined
benefit plan with a section 401(a) qualified trust. Further, these
regulations clarify that an annuity under a defined benefit plan with a
section 401(a) qualified trust is permitted to provide that annuity
payments may increase with an annual percentage increase that does not
exceed the percentage increase in a cost-of-living index that is based
on prices of all items and issued by the Bureau of Labor Statistics.
Finally, the temporary regulations clarify that increases in these
annuity payments to reflect benefit increases must be pursuant to a
plan amendment increasing benefits.
The preamble to the 2001 proposed regulations indicated that the
IRS and Treasury were continuing to consider whether retention of the
rule allowing an employee's minimum required distributions under a
defined benefit plan to be determined using the rules for individual
accounts was appropriate for defined benefit plans. Few comments
specifically requested retention of this rule. As a result, the IRS and
Treasury have concluded that this rule has little application outside
of being used to determine the portion of a lump sum distribution of an
employee's vested accrued benefit that is eligible for rollover.
Accordingly, this rule has not been retained in these temporary
regulations except for use in determining the amount that is eligible
for rollover when a defined benefit plan pays an employee's entire
vested accrued benefit in a lump sum. However, in response to comments,
these temporary regulations permit a plan to treat the amount of a year
of annuity payments that would have been payable under the normal form
as the minimum required distribution for a year in the case of a lump
sum payment.
Finally, in response to a comment, these temporary regulations
clarify that actuarial increases to benefits under a defined benefit
plan required under section 401(a)(9)(C)(iii), as added by SBJPA, need
not be provided for any period before January 1, 1997.
Incidental Benefit Requirement
These final and temporary regulations provide rules relating to the
interaction of the section 401(a)(9) requirements and the incidental
benefit requirement of Sec. 1.401-1(b)(1)(i). Under these rules,
generally if distributions with respect to an employee's benefit
satisfy the minimum distribution incidental benefit requirement under
these regulations, the distribution will be deemed to satisfy any
requirement for distributions under the incidental benefit requirements
of Sec. 1.401-1(b)(1)(i). However, if a plan provides for certain post-
retirement ancillary death benefits or a section 403(b) contract
includes an undistributed pre-1987 account, the employee's benefits
must continue to satisfy the distribution requirements of the
incidental benefit requirement of Sec. 1.401-1(b)(1)(i), determined
without regard to these regulations. Existing revenue rulings continue
to provide guidance with respect to the application of the incidental
benefit requirements to
[[Page 18992]]
permissible nonretirement benefits such as life, accident, or health
benefits.
Trust as Beneficiary
The final regulations retain the provision in the proposed
regulations allowing an underlying beneficiary of a trust to be an
employee's designated beneficiary for purposes of determining required
minimum distributions when the trust is named as the beneficiary of a
retirement plan or IRA, provided that certain requirements are met. One
of these requirements is that documentation of the underlying
beneficiaries of the trust be provided to the plan administrator or IRA
trustee, custodian, or issuer. In the case of individual accounts,
unless the lifetime distribution period for an employee is measured by
the joint life expectancy of the employee and the employee's spouse,
the deadline under these regulations for providing the beneficiary
documentation is October 31 of the year following the year of the
employee's death, rather than the end of the year following the year of
the employee's death as provided under the 2001 proposed regulations.
This deadline for providing the trust documentation is coordinated
with the deadline for determining the employee's designated
beneficiary. Amendments to the 1987 proposed regulations published in
1997 eliminated the requirement that the trust be irrevocable before
death. Commentators indicated that some beneficiaries would have
qualified for a longer distribution period as a result of this change
except for the fact that they had not provided the required
documentation by the deadline provided in the regulations, which, in
some cases, was a date before the regulation was published.
Consequently, the commentators requested that final regulations provide
a transition period for providing this documentation. In response to
these comments, these regulations provide that, if the date for
providing this documentation is before October 31, 2003, the
documentation is permitted to be provided to the plan administrator (or
IRA trustee, custodian, or issuer) until October 31, 2003.
Commentators asked for clarification as to whether an election by a
revocable trust to be treated as part of an estate under section 645
causes the trust to be treated as an estate for purposes of section
401(a)(9). On this point, the IRS and Treasury intend that a revocable
trust will not fail to be a trust for purposes of section 401(a)(9)
merely because the trust elects to be treated as an estate under
section 645, as long as the trust continues to be a trust under state
law.
Separate Accounts
Several commentators requested clarification concerning when an
employee's individual account can be divided into separate accounts
that are permitted to satisfy section 401(a)(9) separately and
concerning whether separate accounts could also provide for separate
investments. In response to these comments, these final regulations
provide that separate accounts with different beneficiaries under the
plan can be established at any time, either before or after the
employee's required beginning date. However, the final regulations
provide that the separate accounts are recognized for purposes of
determining required minimum distributions only after the later of the
year of the employee's death (whether before or after the required
beginning date) and the year the separate accounts are established. In
addition, the final regulations clarify that, in order to determine the
distribution period for the separate account by disregarding the
beneficiaries of the other separate account, the separate account must
be established no later than the end of the year following the year of
the employee's death.
The separate accounting must allocate all post-death investment
gains and losses for the period prior to the establishment of the
separate accounts on a pro rata basis in a reasonable and consistent
basis among the separate accounts for the different beneficiaries. The
separate accounting must also allocate any post-death distribution to
the separate account of the beneficiary receiving that distribution.
Once the separate accounts are established, the final regulations
permit the separate accounting to provide for separate investments for
each separate account.
Elimination of Optional Forms of Benefit
Some commentators requested relief under section 411(d)(6) for the
elimination of optional forms of benefit that were needed to satisfy
section 401(a)(9) under the 1987 proposed regulations but that are no
longer needed to satisfy these final regulations. For defined
contribution plans, this relief generally is not needed because
paragraph (e) of A-2 of Sec. 1.411(d)-4 gives broad authority to
employers to amend their defined contribution plan to eliminate
installment payout options as long as the right to a lump sum option
payable at the same time is preserved. These final regulations also
provide that, pursuant to section 411(d)(6)(B), a plan will not fail to
satisfy section 411(d)(6) merely because the plan is amended to
eliminate the availability of an optional form of benefit to the extent
that the optional form does not satisfy section 401(a)(9). However, the
IRS and Treasury invite public comment if additional relief under
section 411(d)(6) is needed in order for defined benefit plans to
satisfy section 401(a)(9).
Election of Surviving Spouse To Treat an Inherited IRA as Spouse's Own
IRA
These final regulations generally retain the clarifications in the
2001 proposed regulations regarding how and when a surviving spouse of
a deceased IRA owner can elect to treat an IRA inherited by the
surviving spouse from that owner as the spouse's own IRA. The 1987
proposed regulations provided that this election is deemed to have been
made if the surviving spouse contributes to the IRA or does not take
the required minimum distribution for a year under section 401(a)(9)(B)
as a beneficiary of the IRA. Under the 2001 proposed regulations, this
deemed election is permitted to be made only after the distribution of
the required minimum amount for the account, if any, for the year of
the individual's death. These final regulations provide that the
election can be made at any time after the IRA owner's date of death,
while clarifying that the minimum required distribution for the
calendar year of the IRA's owner's death is determined assuming the IRA
owner lived throughout the year. These regulations also clarify that
the surviving spouse is required to receive a minimum distribution for
the year of the IRA owner's death only to the extent that the amount
required was not distributed to the owner before death.
Some commentators raised concerns about the other clarifications in
the 2001 proposed regulations. The 2001 proposed regulations clarified
that a deemed election is permitted only if the spouse is the sole
beneficiary of the account and has an unlimited right to withdraw from
the account. This requirement is not satisfied if a trust is named as
beneficiary of the IRA, even if the spouse is the sole beneficiary of
the trust. As explained in the 2001 preamble, these clarifications make
the election consistent with the underlying premise that the surviving
spouse could have received a distribution of the entire decedent IRA
owner's account and rolled it over to an IRA established in the
surviving spouse's own name as IRA owner.
If the spouse actually receives a distribution from the IRA, the
spouse is
[[Page 18993]]
permitted to roll that distribution over within 60 days into an IRA in
the spouse's own name to the extent that the distribution is not a
required distribution, regardless of whether or not the spouse is the
sole beneficiary of the IRA owner. Further, if the distribution is
received by the spouse before the year that the IRA owner would have
been 70\1/2\, no portion of the distribution is a required minimum
distribution for purposes of determining whether it is eligible to be
rolled over by the surviving spouse.
IRA Reporting of Required Minimum Distributions
The 2001 proposed regulations required the trustee, custodian, or
issuer of an IRA to report the amount of the required minimum
distribution from the IRA at the time and in the manner provided under
additional guidance issued by the IRS and applicable IRS forms and
instructions. A significant number of commentators objected to the
requirement that the amount of the required minimum distribution for a
year be reported because of concerns that the number may be inaccurate
in certain cases. After thorough consideration of these comments and
consultation with interested parties, the final regulations continue to
provide authority to the Service to determine the extent to which the
trustee, custodian, or issuer of an IRA must report information with
respect to the required minimum distribution from that IRA through
guidance of general applicability as well as forms and publications.
In conjunction with these final regulations a notice is being
published that specifies the reporting requirements that apply.
Beginning in 2004, trustees, custodians, and issuers must identify to
the IRS on Form 5498 each IRA for which a minimum distribution is
required to be made to an IRA owner. The trustee, custodian or issuer
does not need to report the amount of the required distribution to the
IRS. However, the trustee, custodian, or issuer of such an IRA, must
provide additional information regarding the IRA to the IRA owner
required to receive a minimum required distribution, beginning with the
minimum required distribution for 2003. The trustee, custodian or
issuer of the IRA either must report the amount of the required minimum
distribution for the IRA to the IRA owner, or must advise the IRA owner
that a minimum distribution with respect to the IRA is required for the
year, offer to calculate the amount of the required minimum
distribution for the IRA owner upon request, and then, if requested,
calculate the amount and provide it to the IRA owner. Although the
delegation of authority in the regulations to require reporting would
permit reporting to be required with respect to required minimum
distributions to beneficiaries, no reporting is required with respect
to beneficiaries at this time.
The reporting provisions in the 2001 proposed regulations, these
final regulations, and the notice being published are intended to
assist taxpayers in complying with the minimum distribution
requirement. However, the Treasury and the IRS continue to have
concerns about the overall level of compliance in this area and intend
to monitor the effect of the new reporting regime on compliance to
determine whether it would be appropriate to modify the regime in the
future.
Calculation Simplification
In response to comments that there are too many variables that
might change during a distribution calendar year for an accurate
calculation of the required minimum distribution for the year by the
trustee at the beginning of the year, a number of simplifying changes
are included in these final regulations. For lifetime distributions,
the marital status of the employee is determined on January 1 each
year. Divorce or death after that date is disregarded until the next
year. Further, a change in beneficiary due to the spouse's death is not
recognized until the following year. Contributions and distributions
made after December 31 of a calendar year are disregarded for purposes
of determining the minimum distribution for the following year. An
employee's account balance for the valuation calendar year that is also
the employee's first distribution calendar year is no longer reduced
for a distribution on April 1 to satisfy the minimum distribution
requirement for the first distribution calendar year. Contributions
made after the calendar year that are allocated as of a date in the
prior calendar year are no longer required to be added back. The only
exceptions are rollover amounts, and recharacterized conversion
contributions, that are not in any account on December 31 of a year.
These changes are made to the qualified plan rules as well as IRA rules
to maintain the parity between the rules.
Other Rules for IRAs
These final regulations retain the general rule that the rules
applying section 401(a)(9) to qualified plans apply also to IRAs,
unless otherwise provided. In addition to retaining the special rules
for IRAs provided in the 2001 proposed regulations, these final
regulations provide a special rule for trustee-to-trustee transfers
between IRAs to coordinate with the rule that allows aggregation of IRA
distributions. Although the IRA to IRA transfer is not treated as a
distribution for purposes of section 401(a)(9), in light of the fact
that the required minimum distribution with respect to the transferor
IRA can be taken from any IRA, the transferor IRA will be able to
transfer the entire balance and will not be required to retain the
amount of the required minimum distribution for the year.
Section 403(b) Contracts
These regulations retain the basic rule in the 1987 and 2001
proposed regulations that a section 403(b) contract is treated as an
individual retirement plan for purposes of satisfying the required
minimum distribution rules. Consequently, the delegation of authority
to require reporting with respect to IRAs also applies to section
403(b) contracts. However, the notice being issued in conjunction with
these regulations provides that no reporting is required at this time
with respect to required minimum distributions from section 403(b)
contracts.
As requested in comments to the 1987 and the 2001 proposed
regulations, these regulations provide that an annuity provided with
respect to a section 403(b)(9) retirement income account will not fail
to satisfy the requirements for annuity payment under an annuity
contract merely because the annuity is not provided under a contract
purchased from an insurance company.
Section 1852(a) of TRA '86 applied section 401(a)(9) to section
403(b) contracts effective for benefits accruing after December 31,
1986. The final regulations retain the rule in the proposed regulations
interpreting the effective date of section 1852(a) of TRA '86 that does
not apply section 401(a)(9) to the undistributed portion of the
employee's account balance in a section 403(b) contract as of December
31, 1986 (the pre-'87 account balance). Further, the final regulations
clarify that a contract will not lose the grandfather for a pre-'87
account balance merely because the account balance is transferred from
one section 403(b) contract to another, provided the issuer of the
transferee contract satisfies the recordkeeping requirements for the
pre-'87 account balance. However, a distribution and rollover
(including a direct rollover) of an amount from the
[[Page 18994]]
pre-'87 account will cause that amount to lose the grandfather
treatment.
Amendment of Qualified Plans
The IRS intends to publish procedures in the near future that will
provide guidance on amending qualified plans to reflect these final
regulations under section 401(a)(9).
Amendment of IRAs and Effective Date
Rev. Proc. 2002-10 (2002-4 I.R.B. 401), provides guidance on when
IRA documents must be updated for these final regulations and for
changes made by EGTRRA.
Effective Date
The regulations apply for determining required minimum
distributions for calendar years beginning on or after January 1, 2003.
For determining required minimum distributions for calendar year 2002,
taxpayers may rely on these final regulations, the 2001 proposed
regulations, or the 1987 proposed regulations.
Special Analyses
It has been determined that these regulations are not a significant
regulatory action as defined in Executive Order 12866. Therefore, a
regulatory assessment is not required. It is hereby certified that the
collection of information in these regulations does not have a
significant economic impact on a substantial number of small entities.
This certification is based on the following. The only provisions
requiring collection of information are in A-2 of Sec. 1.401(a)(9)-1,
A-4 of Sec. 1.401(a)(9)-3, A-5 and A-6 of Sec. 1.401(a)(9)-4, and A-2
of Sec. 1.403(b)-3. The election described in A-4 of Sec. 1.401(a)(9)-3
is expected to be an unusual occurrence for small entities because few
individuals with benefits in retirement plans maintained by small
entities are likely to make these elections. In the case of A-2 of
Sec. 1.401(a)(9)-1 and A-5 and A-6 of Sec. 1.401(a)(9)-4, when
determining required minimum distributions in cases where a plan
participant wishes to designate a trust as beneficiary of the
participant's benefit, the reporting burden is primarily on the plan
participant, or trustee of the trust named as beneficiary, to supply
information rather than on the entity maintaining the retirement plan
and the fact that the number of participants per plan to whom the
burden applies is insignificant. In A-2 of 1.403(b)-3, the
recordkeeping burden with respect to section 403(b) contracts under
which the pre-1987 account balance must be maintained only applies to
issuers and custodians of those contracts, which generally are not
small entities. Therefore, a Regulatory Flexibility Analysis (5 U.S.C.
chapter 6) is not required for this regulation. Pursuant to section
7805(f) of the Internal Revenue Code, the notices of proposed
rulemaking preceding the final rule were submitted to the Chief Counsel
for Advocacy of the Small Business Administration for comment on their
impact on small business and temporary Sec. 1.401(a)(9)-6T will be
submitted to the Chief Counsel for such comments.
Drafting Information
The principal authors of these regulations are Marjorie Hoffman and
Cathy A. Vohs of the Office of the Division Counsel/Associate Chief
Counsel (Tax Exempt and Government Entities). However, other personnel
from the IRS and Treasury participated in their development.
List of Subjects
26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
26 CFR Part 54
Excise taxes, Pensions, Reporting and recordkeeping requirements.
26 CFR Part 602
Reporting and recordkeeping requirements.
Adoption of Amendments to the Regulations
Accordingly, 26 CFR part 1 is amended as follows:
PART 1--INCOME TAXES
Paragraph 1. The authority citation for part 1 is amended by adding
entries in numerical order to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Sec. 1.401(a)(9)-1 is also issued under 26 U.S.C. 401(a)(9).
Sec. 1.401(a)(9)-2 is also issued under 26 U.S.C. 401(a)(9).
Sec. 1.401(a)(9)-3 is also issued under 26 U.S.C. 401(a)(9).
Sec. 1.401(a)(9)-4 is also issued under 26 U.S.C. 401(a)(9).
Sec. 1.401(a)(9)-5 is also issued under 26 U.S.C. 401(a)(9).
Sec. 1.401(a)(9)-6T is also issued under 26 U.S.C. 401(a)(9).
Sec. 1.401(a)(9)-7 is also issued under 26 U.S.C. 401(a)(9).
Sec. 1.401(a)(9)-8 is also issued under 26 U.S.C. 401(a)(9).
Sec. 1.401(a)(9)-9 is also issued under 26 U.S.C. 401(a)(9). * *
*
Sec. 1.403(b)-3 is also issued under 26 U.S.C. 403(b)(10). * * *
Sec. 1.408-8 is also issued under 26 U.S.C. 408(a)(6) and
(b)(3). * * *
Par. 2. Sections 1.401(a)(9)-0 through 1.401(a)(9)-9 are added to
read as follows:
Sec. 1.401(a)(9)-0 Required minimum distributions; table of contents.
This table of contents lists the regulations relating to required
minimum distributions under section 401(a)(9) of the Internal Revenue
Code as follows:
Sec. 1.401(a)(9)-0 Required minimum distributions; table of
contents.
Sec. 1.401(a)(9)-1 Minimum distribution requirement in general.
Sec. 1.401(a)(9)-2 Distributions commencing during an employee's
lifetime.
Sec. 1.401(a)(9)-3 Death before required beginning date.
Sec. 1.401(a)(9)-4 Determination of the designated beneficiary.
Sec. 1.401(a)(9)-5 Required minimum distributions from defined
contribution plans.
Sec. 1.401(a)(9)-6T Required minimum distributions for defined
benefit plans and annuity contracts (temporary).
Sec. 1.401(a)(9)-7 Rollovers and transfers.
Sec. 1.401(a)(9)-8 Special rules.
Sec. 1.401(a)(9)-9 Life expectancy and distribution period tables.
Sec. 1.401(a)(9)-1 Minimum distribution requirement in general.
Q-1. What plans are subject to the minimum distribution requirement
under section 401(a)(9), this section, and Secs. 1.401(a)(9)-2 through
1.401(a)(9)-9?
A-1. Under section 401(a)(9), all stock bonus, pension, and profit-
sharing plans qualified under section 401(a) and annuity contracts
described in section 403(a) are subject to required minimum
distribution rules. See this section and Secs. 1.401(a)(9)-2 through
1.401(a)(9)-9 for the distribution rules applicable to these plans.
Under section 403(b)(10), annuity contracts or custodial accounts
described in section 403(b) are subject to required minimum
distribution rules. See Sec. 1.403(b)-3 for the distribution rules
applicable to these annuity contracts or custodial accounts. Under
section 408(a)(6) and 408(b)(3), individual retirement plans
(including, for some purposes, Roth IRAs under section 408A) are
subject to required minimum distribution rules. See Sec. 1.408-8 for
the distribution rules applicable to individual retirement plans and
see Sec. 1.408A-6 for the distribution rules applicable to Roth IRAs
under section 408A. Under section 457(d)(2), certain deferred
compensation plans for employees of tax exempt organizations or state
and
[[Page 18995]]
local government employees are subject to required minimum distribution
rules.
Q-2. Which employee account balances and benefits held under
qualified trusts and plans are subject to the distribution rules of
section 401(a)(9), this section, and Secs. 1.401(a)(9)-2 through
1.401(a)(9)-9?
A-2. (a) In general. The distribution rules of section 401(a)(9)
apply to all account balances and benefits in existence on or after
January 1, 1985. This section and Secs. 1.401(a)(9)-2 through
1.401(a)(9)-9 apply for purposes of determining required minimum
distributions for calendar years beginning on or after January 1, 2003.
(b) Beneficiaries. (1) The distribution rules of this section and
Secs. 1.401(a)(9)-2 through 1.401(a)(9)-9 apply to account balances and
benefits held for the benefit of a beneficiary for calendar years
beginning on or after January 1, 2003, even if the employee died prior
to January 1, 2003. Thus, in the case of an employee who died prior to
January 1, 2003, the designated beneficiary must be redetermined in
accordance with the provisions of Sec. 1.401(a)(9)-4 and the applicable
distribution period (determined under Sec. 1.401(a)(9)-5 or
1.401(a)(9)-6T, whichever is applicable) must be reconstructed for
purposes of determining the amount required to be distributed for
calendar years beginning on or after January 1, 2003.
(2) A designated beneficiary that is receiving payments under the
5-year rule of section 401(a)(9)(B)(ii), either by affirmative election
or default provisions, may, if the plan so provides, switch to using
the life expectancy rule of section 401(a)(9)(B)(iii) provided any
amounts that would have been required to be distributed under the life
expectancy rule of section 401(a)(9)(B)(iii) for all distribution
calendar years before 2004 are distributed by the earlier of December
31, 2003 or the end of the 5-year period determined under A-2 of
Sec. 1.401(a)(9)-3.
(c) Trust documentation. If a trust fails to meet the rule of A-5
of Sec. 1.401(a)(9)-4 (permitting the beneficiaries of the trust, and
not the trust itself, to be treated as the employee's designated
beneficiaries) solely because the trust documentation was not provided
to the plan administrator by October 31 of the calendar year following
the calendar year in which the employee died, and such documentation is
provided to the plan administrator by October 31, 2003, the
beneficiaries of the trust will be treated as designated beneficiaries
of the employee under the plan for purposes of determining the
distribution period under section 401(a)(9).
Q-3. What specific provisions must a plan contain in order to
satisfy section 401(a)(9)?
A-3. (a) Required provisions. In order to satisfy section
401(a)(9), the plan must include the provisions described in this
paragraph reflecting section 401(a)(9). First, the plan must generally
set forth the statutory rules of section 401(a)(9), including the
incidental death benefit requirement in section 401(a)(9)(G). Second,
the plan must provide that distributions will be made in accordance
with this section and Secs. 1.401(a)(9)-2 through 1.401(a)(9)-9. The
plan document must also provide that the provisions reflecting section
401(a)(9) override any distribution options in the plan inconsistent
with section 401(a)(9). The plan also must include any other provisions
reflecting section 401(a)(9) that are prescribed by the Commissioner in
revenue rulings, notices, and other guidance published in the Internal
Revenue Bulletin. See Sec. 601.601(d)(2)(ii)(b) of this chapter.
(b) Optional provisions. The plan may also include written
provisions regarding any optional provisions governing plan
distributions that do not conflict with section 401(a)(9) and the
regulations thereunder.
(c) Absence of optional provisions. Plan distributions commencing
after an employee's death will be required to be made under the default
provision set forth in Sec. 1.401(a)(9)-3 for distributions unless the
plan document contains optional provisions that override such default
provisions. Thus, if distributions have not commenced to the employee
at the time of the employee's death, distributions after the death of
an employee are to be made automatically in accordance with the default
provisions in A-4(a) of Sec. 1.401(a)(9)-3 unless the plan either
specifies in accordance with A-4(b) of Sec. 1.401(a)(9)-3 the method
under which distributions will be made or provides for elections by the
employee (or beneficiary) in accordance with A-4(c) of
Sec. 1.401(a)(9)-3 and such elections are made by the employee or
beneficiary.
Sec. 1.401(a)(9)-2 Distributions commencing during an employee's
lifetime.
Q-1. In the case of distributions commencing during an employee's
lifetime, how must the employee's entire interest be distributed in
order to satisfy section 401(a)(9)(A)?
A-1. (a) In order to satisfy section 401(a)(9)(A), the entire
interest of each employee must be distributed to such employee not
later than the required beginning date, or must be distributed,
beginning not later than the required beginning date, over the life of
the employee or joint lives of the employee and a designated
beneficiary or over a period not extending beyond the life expectancy
of the employee or the joint life and last survivor expectancy of the
employee and the designated beneficiary.
(b) Section 401(a)(9)(G) provides that lifetime distributions must
satisfy the incidental death benefit requirements.
(c) The amount required to be distributed for each calendar year in
order to satisfy section 401(a)(9)(A) and (G) generally depends on
whether a distribution is in the form of distributions under a defined
contribution plan or annuity payments under a defined benefit plan or
under an annuity contract. For the method of determining the required
minimum distribution in accordance with section 401(a)(9)(A) and (G)
from an individual account under a defined contribution plan, see
Sec. 1.401(a)(9)-5. For the method of determining the required minimum
distribution in accordance with section 401(a)(9)(A) and (G) in the
case of annuity payments from a defined benefit plan or an annuity
contract, see Sec. 1.401(a)(9)-6T.
Q-2. For purposes of section 401(a)(9)(C), what does the term
required beginning date mean?
A-2. (a) Except as provided in paragraph (b) of this A-2 with
respect to a 5-percent owner, as defined in paragraph (c) of this A-2,
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 from
employment with the employer maintaining the plan.
(b) In the case of an employee who is a 5-percent owner, the term
required beginning date means April 1 of the calendar year following
the calendar year in which the employee attains age 70\1/2\ .
(c) For purposes of section 401(a)(9), a 5-percent owner is an
employee who is a 5-percent owner (as defined in section 416) with
respect to the plan year ending in the calendar year in which the
employee attains age 70\1/2\.
(d) Paragraph (b) of this A-2 does not apply in the case of a
governmental plan (within the meaning of section 414(d)) or a church
plan. For purposes of this paragraph, the term church plan means a plan
maintained by a church for church employees, and the term church means
any church (as defined in section 3121(w)(3)(A)) or qualified church-
controlled organization (as defined in section 3121(w)(3)(B)).
[[Page 18996]]
(e) A plan is permitted to provide that the required beginning date
for purposes of section 401(a)(9) for all employees is April 1 of the
calendar year following the calendar year in which an employee attains
age 70\1/2\ regardless of whether the employee is a 5-percent owner.
Q-3. When does an employee attain age 70\1/2\?
A-3. An employee attains age 70\1/2\ as of the date six calendar
months after the 70th anniversary of the employee's birth. For example,
if an employee's date of birth was June 30, 1933, the 70th anniversary
of such employee's birth is June 30, 2003. Such employee attains age
70\1/2\ on December 30, 2003. Consequently, if the employee is a 5-
percent owner or retired, such employee's required beginning date is
April 1, 2004. However, if the employee's date of birth was July 1,
1933, the 70th anniversary of such employee's birth would be July 1,
2003. Such employee would then attain age 70\1/2\ on January 1, 2004
and such employee's required beginning date would be April 1, 2005.
Q-4. Must distributions made before the employee's required
beginning date satisfy section 401(a)(9)?
A-4. Lifetime distributions made before the employee's required
beginning date for calendar years before the employee's first
distribution calendar year, as defined in A-1(b) of Sec. 1.401(a)(9)-5,
need not be made in accordance with section 401(a)(9). However, if
distributions commence before the employee's required beginning date
under a particular distribution option, such as in the form of an
annuity, the distribution option fails to satisfy section 401(a)(9) at
the time distributions commence if, under terms of the particular
distribution option, distributions to be made for the employee's first
distribution calendar year or any subsequent distribution calendar year
will fail to satisfy section 401(a)(9).
Q-5. If distributions have begun to an employee during the
employee's lifetime (in accordance with section 401(a)(9)(A)(ii)), how
must distributions be made after an employee's death?
A-5. Section 401(a)(9)(B)(i) provides that if the distribution of
the employee's interest has begun in accordance with section
401(a)(9)(A)(ii) and the employee dies before his entire interest has
been distributed to him, the remaining portion of such interest must be
distributed at least as rapidly as under the distribution method being
used under section 401(a)(9)(A)(ii) as of the date of his death. The
amount required to be distributed for each distribution calendar year
following the calendar year of death generally depends on whether a
distribution is in the form of distributions from an individual account
under a defined contribution plan or annuity payments under a defined
benefit plan. For the method of determining the required minimum
distribution in accordance with section 401(a)(9)(B)(i) from an
individual account, see Sec. 1.401(a)(9)-5. In the case of annuity
payments from a defined benefit plan or an annuity contract, see
Sec. 1.401(a)(9)-6T.
Q-6. For purposes of section 401(a)(9)(B), when are distributions
considered to have begun to the employee in accordance with section
401(a)(9)(A)(ii)?
A-6. (a) General rule. Except as otherwise provided in A-10 of
Sec. 1.401(a)(9)-6T, distributions are not treated as having begun to
the employee in accordance with section 401(a)(9)(A)(ii) until the
employee's required beginning date, without regard to whether payments
have been made before that date. Thus, section 401(a)(9)(B)(i) only
applies if an employee dies on or after the employee's required
beginning date. For example, if employee A retires in 2003, the
calendar year A attains age 65\1/2\, and begins receiving installment
distributions from a profit-sharing plan over a period not exceeding
the joint life and last survivor expectancy of A and A's spouse,
benefits are not treated as having begun in accordance with section
401(a)(9)(A)(ii) until April 1, 2009 (the April 1 following the
calendar year in which A attains age 70\1/2\). Consequently, if A dies
before April 1, 2009 (A's required beginning date), distributions after
A's death must be made in accordance with section 401(a)(9)(B)(ii) or
(iii) and (iv) and Sec. 1.401(a)(9)-3, and not section 401(a)(9)(B)(i).
This is the case without regard to whether the plan has distributed the
minimum distribution for the first distribution calendar year (as
defined in A-1(b) of Sec. 1.401(a)(9)-5) before A's death.
(b) If a plan provides, in accordance with A-2(e) of this section,
that the required beginning date for purposes of section 401(a)(9) for
all employees is April 1 of the calendar year following the calendar
year in which an employee attains age 70\1/2\, an employee who dies on
or after the required beginning date determined under the plan terms is
treated as dying after the employee's distributions have begun for
purposes of this A-6 even though the employee dies before the April 1
following the calendar year in which the employee retires.
Sec. 1.401(a)(9)-3 Death before required beginning date.
Q-1. If an employee dies before the employee's required beginning
date, how must the employee's entire interest be distributed in order
to satisfy section 401(a)(9)?
A-1. (a) Except as otherwise provided in A-10 of Sec. 1.401(a)(9)-
6T, if an employee dies before the employee's required beginning date
(and, thus, before distributions are treated as having begun in
accordance with section 401(a)(9)(A)(ii)), distribution of the
employee's entire interest must be made in accordance with one of the
methods described in section 401(a)(9)(B)(ii) or (iii) and (iv). One
method (the 5-year rule in section 401(a)(9)(B)(ii)) requires that the
entire interest of the employee be distributed within 5 years of the
employee's death regardless of who or what entity receives the
distribution. Another method (the life expectancy rule in section
401(a)(9)(B)(iii) and (iv)) requires that any portion of an employee's
interest payable to (or for the benefit of) a designated beneficiary be
distributed, commencing within one year of the employee's death, over
the life of such beneficiary (or over a period not extending beyond the
life expectancy of such beneficiary). Section 401(a)(9)(B)(iv) provides
special rules where the designated beneficiary is the surviving spouse
of the employee, including a special commencement date for
distributions under section 401(a)(9)(B)(iii) to the surviving spouse.
(b) See A-4 of this section for the rules for determining which of
the methods described in paragraph (a) of this A-1 applies. See A-3 of
this section to determine when distributions under the exception to the
5-year rule in section 401(a)(9)(B)(iii) and (iv) must commence. See A-
2 of this section to determine when the 5-year period in section
401(a)(9)(B)(ii) ends. For distributions using the life expectancy rule
in section 401(a)(9)(B)(iii) and (iv), see Sec. 1.401(a)(9)-4 in order
to determine the designated beneficiary under section 401(a)(9)(B)(iii)
and (iv), see Sec. 1.401(a)(9)-5 for the rules for determining the
required minimum distribution under a defined contribution plan, and
see Sec. 1.401(a)(9)-6T for required minimum distributions under
defined benefit plans.
Q-2. By when must the employee's entire interest be distributed in
order to satisfy the 5-year rule in section 401(a)(9)(B)(ii)?
A-2. In order to satisfy the 5-year rule in section
401(a)(9)(B)(ii), the employee's entire interest must be distributed by
the end of the calendar
[[Page 18997]]
year which contains the fifth anniversary of the date of the employee's
death. For example, if an employee dies on January 1, 2003, the entire
interest must be distributed by the end of 2008, in order to satisfy
the 5-year rule in section 401(a)(9)(B)(ii).
Q-3. When are distributions required to commence in order to
satisfy the life expectancy rule in section 401(a)(9)(B)(iii) and (iv)?
A-3. (a) Nonspouse beneficiary. In order to satisfy the life
expectancy rule in section 401(a)(9)(B)(iii), if the designated
beneficiary is not the employee's surviving spouse, distributions must
commence on or before the end of the calendar year immediately
following the calendar year in which the employee died. This rule also
applies to the distribution of the entire remaining benefit if another
individual is a designated beneficiary in addition to the employee's
surviving spouse. See A-2 and A-3 of Sec. 1.401(a)(9)-8, however, if
the employee's benefit is divided into separate accounts.
(b) Spousal beneficiary. In order to satisfy the rule in section
401(a)(9)(B)(iii) and (iv), if the sole designated beneficiary is the
employee's surviving spouse, distributions must commence on or before
the later of--
(1) The end of the calendar year immediately following the calendar
year in which the employee died; and
(2) The end of the calendar year in which the employee would have
attained age 70\1/2\.
Q-4. How is it determined whether the 5-year rule in section
401(a)(9)(B)(ii) or the life expectancy rule in section
401(a)(9)(B)(iii) and (iv) applies to a distribution?
A-4. (a) No plan provision. If a plan does not adopt an optional
provision described in paragraph (b) or (c) of this A-4 specifying the
method of distribution after the death of an employee, distribution
must be made as follows:
(1) If the employee has a designated beneficiary, as determined
under Sec. 1.401(a)(9)-4, distributions are to be made in accordance
with the life expectancy rule in section 401(a)(9)(B)(iii) and (iv).
(2) If the employee has no designated beneficiary, distributions
are to be made in accordance with the 5-year rule in section
401(a)(9)(B)(ii).
(b) Optional plan provisions. A plan may adopt a provision
specifying either that the 5-year rule in section 401(a)(9)(B)(ii) will
apply to certain distributions after the death of an employee even if
the employee has a designated beneficiary or that distribution in every
case will be made in accordance with the 5-year rule in section
401(a)(9)(B)(ii). Further, a plan need not have the same method of
distribution for the benefits of all employees in order to satisfy
section 401(a)(9).
(c) Elections. A plan may adopt a provision that permits employees
(or beneficiaries) to elect on an individual basis whether the 5-year
rule in section 401(a)(9)(B)(ii) or the life expectancy rule in section
401(a)(9)(B)(iii) and (iv) applies to distributions after the death of
an employee who has a designated beneficiary. Such an election must be
made no later than the earlier of the end of the calendar year in which
distribution would be required to commence in order to satisfy the
requirements for the life expectancy rule in section 401(a)(9)(B)(iii)
and (iv) (see A-3 of this section for the determination of such
calendar year) or the end of the calendar year which contains the fifth
anniversary of the date of death of the employee. As of the last date
the election may be made, the election must be irrevocable with respect
to the beneficiary (and all subsequent beneficiaries) and must apply to
all subsequent calendar years. If a plan provides for the election, the
plan may also specify the method of distribution that applies if
neither the employee nor the beneficiary makes the election. If neither
the employee nor the beneficiary elects a method and the plan does not
specify which method applies, distribution must be made in accordance
with paragraph (a) of this A-4.
Q-5. If the employee's surviving spouse is the employee's sole
designated beneficiary and such spouse dies after the employee, but
before distributions have begun to the surviving spouse under section
401(a)(9)(B)(iii) and (iv), how is the employee's interest to be
distributed?
A-5. Pursuant to section 401(a)(9)(B)(iv)(II), if the surviving
spouse is the employee's sole designated beneficiary and dies after the
employee, but before distributions to such spouse have begun under
section 401(a)(9)(B)(iii) and (iv), the 5-year rule in section
401(a)(9)(B)(ii) and the life expectancy rule in section
401(a)(9)(B)(iii) are to be applied as if the surviving spouse were the
employee. In applying this rule, the date of death of the surviving
spouse shall be substituted for the date of death of the employee.
However, in such case, the rules in section 401(a)(9)(B)(iv) are not
available to the surviving spouse of the deceased employee's surviving
spouse.
Q-6. For purposes of section 401(a)(9)(B)(iv)(II), when are
distributions considered to have begun to the surviving spouse?
A-6. Distributions are considered to have begun to the surviving
spouse of an employee, for purposes of section 401(a)(9)(B)(iv)(II), on
the date, determined in accordance with A-3 of this section, on which
distributions are required to commence to the surviving spouse, even
though payments have actually been made before that date. See A-11 of
Sec. 1.401(a)(9)-6T for a special rule for annuities.
Sec. 1.401(a)(9)-4 Determination of the designated beneficiary.
Q-1. Who is a designated beneficiary under section 401(a)(9)(E)?
A-1. A designated beneficiary is an individual who is designated as
a beneficiary under the plan. An individual may be designated as a
beneficiary under the plan either by the terms of the plan or, if the
plan so provides, by an affirmative election by the employee (or the
employee's surviving spouse) specifying the beneficiary. A beneficiary
designated as such under the plan is an individual who is entitled to a
portion of an employee's benefit, contingent on the employee's death or
another specified event. For example, if a distribution is in the form
of a joint and survivor annuity over the life of the employee and
another individual, the plan does not satisfy section 401(a)(9) unless
such other individual is a designated beneficiary under the plan. A
designated beneficiary need not be specified by name in the plan or by
the employee to the plan in order to be a designated beneficiary so
long as the individual who is to be the beneficiary is identifiable
under the plan. The members of a class of beneficiaries capable of
expansion or contraction will be treated as being identifiable if it is
possible, to identify the class member with the shortest life
expectancy. The fact that an employee's interest under the plan passes
to a certain individual under a will or otherwise under applicable
state law does not make that individual a designated beneficiary unless
the individual is designated as a beneficiary under the plan. See A-6
of Sec. 1.401(a)(9)-8 for rules which apply to qualified domestic
relation orders.
Q-2. Must an employee (or the employee's spouse) make an
affirmative election specifying a beneficiary for a person to be a
designated beneficiary under section 40l(a)(9)(E)?
A-2. No, a designated beneficiary is an individual who is
designated as a beneficiary under the plan whether or
[[Page 18998]]
not the designation under the plan was made by the employee. The choice
of beneficiary is subject to the requirements of sections 401(a)(11),
414(p), and 417.
Q-3. May a person other than an individual be considered to be a
designated beneficiary for purposes of section 401(a)(9)?
A-3. No, only individuals may be designated beneficiaries for
purposes of section 401(a)(9). A person that is not an individual, such
as the employee's estate, may not be a designated beneficiary. If a
person other than an individual is designated as a beneficiary of an
employee's benefit, the employee will be treated as having no
designated beneficiary for purposes of section 401(a)(9), even if there
are also individuals designated as beneficiaries. However, see A-5 of
this section for special rules that apply to trusts and A-2 and A-3 of
Sec. 1.401(a)(9)-8 for rules that apply to separate accounts.
Q-4. When is the designated beneficiary determined?
A-4. (a) General rule. In order to be a designated beneficiary, an
individual must be a beneficiary as of the date of death. Except as
provided in paragraph (b) and Sec. 1.401(a)(9)-6T, the employee's
designated beneficiary will be determined based on the beneficiaries
designated as of the date of death who remain beneficiaries as of
September 30 of the calendar year following the calendar year of the
employee's death. Consequently, except as provided in Sec. 1.401(a)(9)-
6T, any person who was a beneficiary as of the date of the employee's
death, but is not a beneficiary as of that September 30 (e.g., because
the person receives the entire benefit to which the person is entitled
before that September 30), is not taken into account in determining the
employee's designated beneficiary for purposes of determining the
distribution period for required minimum distributions after the
employee's death. Accordingly, if a person disclaims entitlement to the
employee's benefit, pursuant to a disclaimer that satisfies section
2518 by that September 30 thereby allowing other beneficiaries to
receive the benefit in lieu of that person, the disclaiming person is
not taken into account in determining the employee's designated
beneficiary.
(b) Surviving spouse. As provided in A-5 of Sec. 1.401(a)(9)-3, if
the employee's spouse is the sole designated beneficiary as of
September 30 of the calendar year following the calendar year of the
employee's death, and the surviving spouse dies after the employee and
before the date on which distributions have begun to the surviving
spouse under section 401(a)(9)(B)(iii) and (iv), the rule in section
40l(a)(9)(B)(iv)(II) will apply. Thus, for example, the relevant
designated beneficiary for determining the distribution period after
the death of the surviving spouse is the designated beneficiary of the
surviving spouse. Similarly, such designated beneficiary will be
determined based on the beneficiaries designated as of the date of the
surviving spouse's death and who remain beneficiaries as of September
30 of the calendar year following the calendar year of the surviving
spouse's death. Further, if, as of that September 30, there is no
designated beneficiary under the plan with respect to that surviving
spouse, distribution must be made in accordance with the 5-year rule in
section 401(a)(9)(B)(ii) and A-2 of Sec. 1.401(a)(9)-3.
(c) Deceased beneficiary. For purposes of this A-4, an individual
who is a beneficiary as of the date of the employee's death and dies
prior to September 30 of the calendar year following the calendar year
of the employee's death without disclaiming continues to be treated as
a beneficiary as of the September 30 of the calendar year following the
calendar year of the employee's death in determining the employee's
designated beneficiary for purposes of determining the distribution
period for required minimum distributions after the employee's death,
without regard to the identity of the successor beneficiary who is
entitled to distributions as the beneficiary of the deceased
beneficiary. The same rule applies in the case of distributions to
which A-5 of Sec. 1.401(a)(9)-3 applies so that, if an individual is
designated as a beneficiary of an employee's surviving spouse as of the
spouse's date of death and dies prior to September 30 of the year
following the year of the surviving spouse's death, that individual
will continue to be treated as a designated beneficiary.
Q-5. If a trust is named as a beneficiary of an employee, will the
beneficiaries of the trust with respect to the trust's interest in the
employee's benefit be treated as having been designated as
beneficiaries of the employee under the plan for purposes of
determining the distribution period under section 401(a)(9)?
A-5. (a) If the requirements of paragraph (b) of this A-5 are met
with respect to a trust that is named as the beneficiary of an employee
under the plan, the beneficiaries of the trust (and not the trust
itself) will be treated as having been designated as beneficiaries of
the employee under the plan for purposes of determining the
distribution period under section 401(a)(9).
(b) The requirements of this paragraph (b) are met if, during any
period during which required minimum distributions are being determined
by treating the beneficiaries of the trust as designated beneficiaries
of the employee, the following requirements are met--
(1) The trust is a valid trust under state law, or would be but for
the fact that there is no corpus.
(2) The trust is irrevocable or will, by its terms, become
irrevocable upon the death of the employee.
(3) The beneficiaries of the trust who are beneficiaries with
respect to the trust's interest in the employee's benefit are
identifiable within the meaning of A-1 of this section from the trust
instrument.
(4) The documentation described in A-6 of this section has been
provided to the plan administrator.
(c) In the case of payments to a trust having more than one
beneficiary, see A-7 of Sec. 1.401(a)(9)-5 for the rules for
determining the designated beneficiary whose life expectancy will be
used to determine the distribution period and A-3 of this section for
the rules that apply if a person other than an individual is designated
as a beneficiary of an employee's benefit. However, the separate
account rules under A-2 of Sec. 1.401(a)(9)-8 are not available to
beneficiaries of a trust with respect to the trust's interest in the
employee's benefit.
(d) If the beneficiary of the trust named as beneficiary of the
employee's interest is another trust, the beneficiaries of the other
trust will be treated as being designated as beneficiaries of the first
trust, and thus, having been designated by the employee under the plan
for purposes of determining the distribution period under section
401(a)(9)(A)(ii), provided that the requirements of paragraph (b) of
this A-5 are satisfied with respect to such other trust in addition to
the trust named as beneficiary.
Q-6. If a trust is named as a beneficiary of an employee, what
documentation must be provided to the plan administrator?
A-6. (a) Required minimum distributions before death. If an
employee designates a trust as the beneficiary of his or her entire
benefit and the employee's spouse is the sole beneficiary of the trust,
in order to satisfy the documentation requirements of this A-6 so that
the spouse can be treated as the sole designated beneficiary of the
employee's benefits (if the other requirements of paragraph (b)
[[Page 18999]]
of A-5 of this section are satisfied), the employee must either--
(1) Provide to the plan administrator a copy of the trust
instrument and agree that if the trust instrument is amended at any
time in the future, the employee will, within a reasonable time,
provide to the plan administrator a copy of each such amendment; or
(2) Provide to the plan administrator a list of all of the
beneficiaries of the trust (including contingent and remaindermen
beneficiaries with a description of the conditions on their entitlement
sufficient to establish that the spouse is the sole beneficiary) for
purposes of section 401(a)(9); certify that, to the best of the
employee's knowledge, this list is correct and complete and that the
requirements of paragraph (b)(1), (2), and (3) of A-5 of this section
are satisfied; agree that, if the trust instrument is amended at any
time in the future, the employee will, within a reasonable time,
provide to the plan administrator corrected certifications to the
extent that the amendment changes any information previously certified;
and agree to provide a copy of the trust instrument to the plan
administrator upon demand.
(b) Required minimum distributions after death. In order to satisfy
the documentation requirement of this A-6 for required minimum
distributions after the death of the employee (or spouse in a case to
which A-5 of Sec. 1.401(a)(9)-3 applies), by October 31 of the calendar
year immediately following the calendar year in which the employee
died, the trustee of the trust must either--
(1) Provide the plan administrator with a final list of all
beneficiaries of the trust (including contingent and remaindermen
beneficiaries with a description of the conditions on their
entitlement) as of September 30 of the calendar year following the
calendar year of the employee's death; certify that, to the best of the
trustee's knowledge, this list is correct and complete and that the
requirements of paragraph (b)(1), (2), and (3) of A-5 of this section
are satisfied; and agree to provide a copy of the trust instrument to
the plan administrator upon demand; or
(2) Provide the plan administrator with a copy of the actual trust
document for the trust that is named as a beneficiary of the employee
under the plan as of the employee's date of death.
(c) Relief for discrepancy between trust instrument and employee
certifications or earlier trust instruments. (1) If required minimum
distributions are determined based on the information provided to the
plan administrator in certifications or trust instruments described in
paragraph (a) or (b) of this A-6, a plan will not fail to satisfy
section 401(a)(9) merely because the actual terms of the trust
instrument are inconsistent with the information in those
certifications or trust instruments previously provided to the plan
administrator, but only if the plan administrator reasonably relied on
the information provided and the required minimum distributions for
calendar years after the calendar year in which the discrepancy is
discovered are determined based on the actual terms of the trust
instrument.
(2) For purposes of determining the amount of the excise tax under
section 4974, the required minimum distribution is determined for any
year based on the actual terms of the trust in effect during the year.
Sec. 1.401(a)(9)-5 Required minimum distributions from defined
contribution plans.
Q-1. If an employee's benefit is in the form of an individual
account under a defined contribution plan, what is the amount required
to be distributed for each calendar year?
A-1. (a) General rule. If an employee's accrued benefit is in the
form of an individual account under a defined contribution plan, the
minimum amount required to be distributed for each distribution
calendar year, as defined in paragraph (b) of this A-1, is equal to the
quotient obtained by dividing the account (determined under A-3 of this
section) by the applicable distribution period (determined under A-4 or
A-5 of this section, whichever is applicable). However, the required
minimum distribution amount will never exceed the entire account
balance on the date of the distribution. See A-8 of this section for
rules that apply if a portion of the employee's account is not vested.
Further, the minimum distribution required to be distributed on or
before an employee's required beginning date is always determined under
section 401(a)(9)(A)(ii) and this A-1 and not section 401(a)(9)(A)(i).
(b) Distribution calendar year. A calendar year for which a minimum
distribution is required is a distribution calendar year. If an
employee's required beginning date is April 1 of the calendar year
following the calendar year in which the employee attains age 70\1/2\,
the employee's first distribution calendar year is the year the
employee attains age 70\1/2\. If an employee's required beginning date
is April 1 of the calendar year following the calendar year in which
the employee retires, the employee's first distribution calendar year
is the calendar year in which the employee retires. In the case of
distributions to be made in accordance with the life expectancy rule in
Sec. 1.401(a)(9)-3 and in section 401(a)(9)(B)(iii) and (iv), the first
distribution calendar year is the calendar year containing the date
described in A-3(a) or A-3(b) of Sec. 1.401(a)(9)-3, whichever is
applicable.
(c) Time for distributions. The distribution required to be made on
or before the employee's required beginning date shall be treated as
the distribution required for the employee's first distribution
calendar year (as defined in paragraph (b) of this A-1). The required
minimum distribution for other distribution calendar years, including
the required minimum distribution for the distribution calendar year in
which the employee's required beginning date occurs, must be made on or
before the end of that distribution calendar year.
(d) Minimum distribution incidental benefit requirement. If
distributions of an employee's account balance under a defined
contribution plan are made in accordance with this section, the minimum
distribution incidental benefit requirement of section 401(a)(9)(G) is
satisfied. Further, with respect to the retirement benefits provided by
that account balance, to the extent the incidental benefit requirement
of Sec. 1.401-1(b)(1)(i) requires a distribution, that requirement is
deemed to be satisfied if distributions satisfy the minimum
distribution incidental benefit requirement of section 401(a)(9)(G) and
this section.
(e) Annuity contracts. Instead of satisfying this A-1, the minimum
distribution requirement may be satisfied by the purchase of an annuity
contract from an insurance company in accordance with A-4 of
Sec. 1.401(a)(9)-6T with the employee's entire individual account. If
such an annuity is purchased after distributions are required to
commence (the required beginning date, in the case of distributions
commencing before death, or the date determined under A-3 of
Sec. 1.401(a)(9)-3, in the case of distributions commencing after
death), payments under the annuity contract purchased will satisfy
section 401(a)(9) for distribution calendar years after the calendar
year of the purchase if payments under the annuity contract are made in
accordance with Sec. 1.401(a)(9)-6T. In such a case, payments under the
annuity contract will be treated as distributions from the individual
account for purposes of determining if the individual account satisfies
section 401(a)(9) for the calendar year of the purchase. An
[[Page 19000]]
employee may also purchase an annuity contract with a portion of the
employee's account under the rules of A-2(a)(3) of Sec. 1.401(a)(9)-8.
Q-2. If an employee's benefit is in the form of an individual
account and, in any calendar year, the amount distributed exceeds the
minimum required, will credit be given in subsequent calendar years for
such excess distribution?
A-2. If, for any distribution calendar year, the amount distributed
exceeds the minimum required, no credit will be given in subsequent
calendar years for such excess distribution.
Q-3. What is the amount of the account of an employee used for
determining the employee's required minimum distribution in the case of
an individual account?
A-3. (a) In the case of an individual account, the benefit used in
determining the required minimum distribution for a distribution
calendar year is the account balance as of the last valuation date in
the calendar year immediately preceding that distribution calendar year
(valuation calendar year) adjusted in accordance with paragraphs (b)
and (c) of this A-3.
(b) The account balance is increased by the amount of any
contributions or forfeitures allocated to the account balance as of
dates in the valuation calendar year after the valuation date. For this
purpose, contributions that are allocated to the account balance as of
dates in the valuation calendar year after the valuation date, but that
are not actually made during the valuation calendar year, are permitted
to be excluded.
(c) The account balance is decreased by distributions made in the
valuation calendar year after the valuation date.
(d) If an amount is distributed by one plan and rolled over to
another plan (receiving plan), A-2 of Sec. 1.401(a)(9)-7 provides
additional rules for determining the benefit and required minimum
distribution under the receiving plan. If an amount is transferred from
one plan (transferor plan) to another plan (transferee plan), A-3 and
A-4 of Sec. 1.401(a)(9)-7 provide additional rules for determining the
amount of the required minimum distribution and the benefit under both
the transferor and transferee plans.
Q-4. For required minimum distributions during an employee's
lifetime, what is the applicable distribution period?
A-4. (a) General rule. Except as provided in paragraph (b) of this
A-4, the applicable distribution period for required minimum
distributions for distribution calendar years up to and including the
distribution calendar year that includes the employee's date of death
is determined using the Uniform Lifetime Table in A-2 of
Sec. 1.401(a)(9)-9 for the employee's age as of the employee's birthday
in the relevant distribution calendar year. If an employee dies on or
after the required beginning date, the distribution period applicable
for calculating the amount that must be distributed during the
distribution calendar year that includes the employee's death is
determined as if the employee had lived throughout that year. Thus, a
minimum required distribution, determined as if the employee had lived
throughout that year, is required for the year of the employee's death
and that amount must be distributed to a beneficiary to the extent it
has not already been distributed to the employee.
(b) Spouse is sole beneficiary--(1) General rule. Except as
otherwise provided in paragraph (b)(2) of this A-4, if the sole
designated beneficiary of an employee is the employee's surviving
spouse, for required minimum distributions during the employee's
lifetime, the applicable distribution period is the longer of the
distribution period determined in accordance with paragraph (a) of this
A-4 or the joint life expectancy of the employee and spouse using the
employee's and spouse's attained ages as of the employee's and the
spouse's birthdays in the distribution calendar year. The spouse is
sole designated beneficiary for purposes of determining the applicable
distribution period for a distribution calendar year during the
employee's lifetime only if the spouse is the sole beneficiary of the
employee's entire interest at all times during the distribution
calendar year.
(2) Change in marital status. If the employee and the employee's
spouse are married on January 1 of a distribution calendar year, but do
not remain married throughout that year (i.e., the employee or the
employee's spouse die or they become divorced during that year), the
employee will not fail to have a spouse as the employee's sole
beneficiary for that year merely because they are not married
throughout that year. If an employee's spouse predeceases the employee,
the spouse will not fail to be the employee's sole beneficiary for the
distribution calendar year that includes the date of the spouse's death
solely because, for the period remaining in that year after the
spouse's death, someone other than the spouse is named as beneficiary.
However, the change in beneficiary due to the death or divorce of the
spouse will be effective for purposes of determining the applicable
distribution period under section 401(a)(9) in the distribution
calendar year following the distribution calendar year that includes
the date of the spouse's death or divorce.
Q-5. For required minimum distributions after an employee's death,
what is the applicable distribution period?
A-5. (a) Death on or after the employee's required beginning date.
If an employee dies after distribution has begun as determined under A-
6 of Sec. 1.401(a)(9)-2 (generally on or after the employee's required
beginning date), in order to satisfy section 401(a)(9)(B)(i), the
applicable distribution period for distribution calendar years after
the distribution calendar year containing the employee's date of death
is either--
(1) If the employee has a designated beneficiary as of the date
determined under A-4 of Sec. 1.401(a)(9)-4, the longer of--
(i) The remaining life expectancy of the employee's designated
beneficiary determined in accordance with paragraph (c)(1) or (2) of
this A-5; and
(ii) The remaining life expectancy of the employee determined in
accordance with paragraph (c)(3) of this A-5; or
(2) If the employee does not have a designated beneficiary as of
the date determined under A-4 of Sec. 1.401(a)(9)-4, the remaining life
expectancy of the employee determined in accordance with paragraph
(c)(3) of this A-5.
(b) Death before an employee's required beginning date. If an
employee dies before distribution has begun, as determined under A-5 of
Sec. 1.401(a)(9)-2 (generally before the employee's required beginning
date), in order to satisfy section 401(a)(9)(B)(iii) or (iv) and the
life expectancy rule described in A-1 of Sec. 1.401(a)(9)-3, the
applicable distribution period for distribution calendar years after
the distribution calendar year containing the employee's date of death
is determined in accordance with paragraph (c) of this A-5. See A-4 of
Sec. 1.401(a)(9)-3 to determine when the 5-year rule in section
401(a)(9)(B)(ii) applies (e.g., there is no designated beneficiary or
the 5-year rule is elected or specified by plan provision).
(c) Life expectancy--(1) Nonspouse designated beneficiary. Except
as otherwise provided in paragraph (c)(2), the applicable distribution
period measured by the beneficiary's remaining life expectancy is
determined using the beneficiary's age as of the beneficiary's birthday
in the calendar year immediately following the calendar year of the
employee's death. In subsequent calendar years, the applicable
[[Page 19001]]
distribution period is reduced by one for each calendar year that has
elapsed after the calendar year immediately following the calendar year
of the employee's death.
(2) Spouse designated beneficiary. If the surviving spouse of the
employee is the employee's sole beneficiary, the applicable
distribution period is measured by the surviving spouse's life
expectancy using the surviving spouse's birthday for each distribution
calendar year after the calendar year of the employee's death up
through the calendar year of the spouse's death. For calendar years
after the calendar year of the spouse's death, the applicable
distribution period is the life expectancy of the spouse using the age
of the spouse as of the spouse's birthday in the calendar year of the
spouse's death, reduced by one for each calendar year that has elapsed
after the calendar year of the spouse's death.
(3) No designated beneficiary. If the employee does not have a
designated beneficiary, the applicable distribution period measured by
the employee's remaining life expectancy is the life expectancy of the
employee using the age of the employee as of the employee's birthday in
the calendar year of the employee's death. In subsequent calendar years
the applicable distribution period is reduced by one for each calendar
year that has elapsed after the calendar year of the employee's death.
Q-6. What life expectancies must be used for purposes of
determining required minimum distributions under section 401(a)(9)?
A-6. Life expectancies for purposes of determining required minimum
distributions under section 401(a)(9) must be computed using the Single
Life Table in A-1 of Sec. 1.401(a)(9)-9 and the Joint and Last Survivor
Table in A-3 of Sec. 1.401(a)(9)-9.
Q-7. If an employee has more than one designated beneficiary, which
designated beneficiary's life expectancy will be used to determine the
applicable distribution period?
A-7. (a) General rule--(1) Except as otherwise provided in
paragraph (c) of this A-7, if more than one individual is designated as
a beneficiary with respect to an employee as of the applicable date for
determining the designated beneficiary under A-4 of Sec. 1.401(a)(9)-4,
the designated beneficiary with the shortest life expectancy will be
the designated beneficiary for purposes of determining the applicable
distribution period.
(2) See A-3 of Sec. 1.401(a)(9)-4 for rules that apply if a person
other than an individual is designated as a beneficiary and see A-2 and
A-3 of Sec. 1.401(a)(9)-8 for special rules that apply if an employee's
benefit under a plan is divided into separate accounts and the
beneficiaries with respect to a separate account differ from the
beneficiaries of another separate account.
(b) Contingent beneficiary. Except as provided in paragraph (c)(1)
of this A-7, if a beneficiary's entitlement to an employee's benefit
after the employee's death is a contingent right, such contingent
beneficiary is nevertheless considered to be a beneficiary for purposes
of determining whether a person other than an individual is designated
as a beneficiary (resulting in the employee being treated as having no
designated beneficiary under the rules of A-3 of Sec. 1.401(a)(9)-4)
and which designated beneficiary has the shortest life expectancy under
paragraph (a) of this A-7.
(c) Successor beneficiary--(1) A person will not be considered a
beneficiary for purposes of determining who is the beneficiary with the
shortest life expectancy under paragraph (a) of this A-7, or whether a
person who is not an individual is a beneficiary, merely because the
person could become the successor to the interest of one of the
employee's beneficiaries after that beneficiary's death. However, the
preceding sentence does not apply to a person who has any right
(including a contingent right) to an employee's benefit beyond being a
mere potential successor to the interest of one of the employee's
beneficiaries upon that beneficiary's death. Thus, for example, if the
first beneficiary has a right to all income with respect to an
employee's individual account during that beneficiary's life and a
second beneficiary has a right to the principal but only after the
death of the first income beneficiary (any portion of the principal
distributed during the life of the first income beneficiary to be held
in trust until that first beneficiary's death), both beneficiaries must
be taken into account in determining the beneficiary with the shortest
life expectancy and whether only individuals are beneficiaries.
(2) If the individual beneficiary whose life expectancy is being
used to calculate the distribution period dies after September 30 of
the calendar year following the calendar year of the employee's death,
such beneficiary's remaining life expectancy will be used to determine
the distribution period without regard to the life expectancy of the
subsequent beneficiary.
(3) This paragraph (c) is illustrated by the following examples:
Example 1. (i) Employer M maintains a defined contribution
plan, Plan X. Employee A, an employee of M, died in 2005 at the age
of 55, survived by spouse, B, who was 50 years old. Prior to A's
death, M had established an account balance for A in Plan X. A's
account balance is invested only in productive assets. A named a
testamentary trust (Trust P) established under A's will as the
beneficiary of all amounts payable from A's account in Plan X after
A's death. A copy of the Trust P and a list of the trust
beneficiaries were provided to the plan administrator of Plan X by
October 31 of the calendar year following the calendar year of A's
death. As of the date of A's death, the Trust P was irrevocable and
was a valid trust under the laws of the state of A's domicile. A's
account balance in Plan X was includible in A's gross estate under
Sec. 2039.
(ii) Under the terms of Trust P, all trust income is payable
annually to B, and no one has the power to appoint Trust P principal
to any person other than B. A's children, who are all younger than
B, are the sole remainder beneficiaries of the Trust P. No other
person has a beneficial interest in Trust P. Under the terms of the
Trust P, B has the power, exercisable annually, to compel the
trustee to withdraw from A's account balance in Plan X an amount
equal to the income earned on the assets held in A's account in Plan
X during the calendar year and to distribute that amount through
Trust P to B. Plan X contains no prohibition on withdrawal from A's
account of amounts in excess of the annual required minimum
distributions under section 401(a)(9). In accordance with the terms
of Plan X, the trustee of Trust P elects, in order to satisfy
section 401(a)(9), to receive annual required minimum distributions
using the life expectancy rule in section 401(a)(9)(B)(iii) for
distributions over a distribution period equal to B's life
expectancy. If B exercises the withdrawal power, the trustee must
withdraw from A's account under Plan X the greater of the amount of
income earned in the account during the calendar year or the
required minimum distribution. However, under the terms of Trust P,
and applicable state law, only the portion of the Plan X
distribution received by the trustee equal to the income earned by
A's account in Plan X is required to be distributed to B (along with
any other trust income.)
(iii) Because some amounts distributed from A's account in Plan
X to Trust P may be accumulated in Trust P during B's lifetime for
the benefit of A's children, as remaindermen beneficiaries of Trust
P, even though access to those amounts are delayed until after B's
death, A's children are beneficiaries of A's account in Plan X in
addition to B and B is not the sole designated beneficiary of A's
account. Thus the designated beneficiary used to determine the
distribution period from A's account in Plan X is the beneficiary
with the shortest life expectancy. B's life expectancy is the
shortest of all the potential beneficiaries of the testamentary
trust's interest in A's account in Plan X (including remainder
beneficiaries). Thus, the distribution period for purposes of
section 401(a)(9)(B)(iii) is B's life expectancy. Because B is not
the sole designated
[[Page 19002]]
beneficiary of the testamentary trust's interest in A's account in
Plan X, the special rule in 401(a)(9)(B)(iv) is not available and
the annual required minimum distributions from the account to Trust
M must begin no later than the end of the calendar year immediately
following the calendar year of A's death.
Example 2. (i) The facts are the same as Example 1 except that
the testamentary trust instrument provides that all amounts
distributed from A's account in Plan X to the trustee while B is
alive will be paid directly to B upon receipt by the trustee of
Trust P.
(ii) In this case, B is the sole designated beneficiary of A's
account in Plan X for purposes of determining the designated
beneficiary under section 401(a)(9)(B)(iii) and (iv). No amounts
distributed from A's account in Plan X to Trust P are accumulated in
Trust P during B's lifetime for the benefit of any other
beneficiary. Therefore, the residuary beneficiaries of Trust P are
mere potential successors to B's interest in Plan X. Because B is
the sole beneficiary of the testamentary trust's interest in A's
account in Plan X, the annual required minimum distributions from
A's account to Trust P must begin no later than the end of the
calendar year in which A would have attained age 70\1/2\, rather
than the calendar year immediately following the calendar year of
A's death.
Q-8. If a portion of an employee's individual account is not vested
as of the employee's required beginning date, how is the determination
of the required minimum distribution affected?
A-8. If the employee's benefit is in the form of an individual
account, the benefit used to determine the required minimum
distribution for any distribution calendar year will be determined in
accordance with A-1 of this section without regard to whether or not
all of the employee's benefit is vested. If any portion of the
employee's benefit is not vested, distributions will be treated as
being paid from the vested portion of the benefit first. If, as of the
end of a distribution calendar year (or as of the employee's required
beginning date, in the case of the employee's first distribution
calendar year), the total amount of the employee's vested benefit is
less than the required minimum distribution for the calendar year, only
the vested portion, if any, of the employee's benefit is required to be
distributed by the end of the calendar year (or, if applicable, by the
employee's required beginning date). However, the required minimum
distribution for the subsequent distribution calendar year must be
increased by the sum of amounts not distributed in prior calendar years
because the employee's vested benefit was less than the required
minimum distribution.
Q-9. Which amounts distributed from an individual account are taken
into account in determining whether section 401(a)(9) is satisfied and
which amounts are not taken into account in determining whether section
401(a)(9) is satisfied?
A-9. (a) General rule. Except as provided in paragraph (b), all
amounts distributed from an individual account are distributions that
are taken into account in determining whether section 401(a)(9) is
satisfied, regardless of whether the amount is includible in income.
Thus, for example, amounts that are excluded from income as recovery of
investment in the contract under section 72 are taken into account for
purposes of determining whether section 401(a)(9) is satisfied for a
distribution calendar year. Similarly, amounts excluded from income as
net unrealized appreciation on employer securities also are amounts
distributed for purposes of determining if section 401(a)(9) is
satisfied.
(b) Exceptions. The following amounts are not taken into account in
determining whether the required minimum amount has been distributed
for a calendar year:
(1) Elective deferrals and employee contributions that, pursuant to
Sec. 1.415-6(b)(6)(iv), are returned (together with the income
allocable to these corrective distributions) as a result of the
application of the section 415 limitations.
(2) Corrective distributions of excess deferrals as described in
Sec. 1.402(g)-1(e)(3), together with the income allocable to these
distributions.
(3) Corrective distributions of excess contributions under a
qualified cash or deferred arrangement under section 401(k)(8) and
excess aggregate contributions under section 401(m)(6), together with
the income allocable to these distributions.
(4) Loans that are treated as deemed distributions pursuant to
section 72(p).
(5) Dividends described in section 404(k) that are paid on employer
securities. (Amounts paid to the plan that, pursuant to section
404(k)(2)(A)(iii)(II), are included in the account balance and
subsequently distributed from the account lose their character as
dividends.)
(6) The costs of life insurance coverage (P.S. 58 costs).
(7) Similar items designated by the Commissioner in revenue
rulings, notices, and other guidance published in the Internal Revenue
Bulletin. See Sec. 601.601(d)(2)(ii)(b) of this chapter.
Sec. 1.401(a)(9)-6T Required minimum distributions for defined benefit
plans and annuity contracts (temporary).
Q-1. How must distributions under a defined benefit plan be paid in
order to satisfy section 401(a)(9)?
A-1. (a) General rules. In order to satisfy section 401(a)(9),
except as otherwise provided in this A-1, distributions under a defined
benefit plan must be paid in the form of periodic annuity payments for
the employee's life (or the joint lives of the employee and
beneficiary) or over a period certain that does not exceed the maximum
length of the period certain determined in accordance with A-3 of this
section. The interval between payments for the annuity must be uniform
over the entire distribution period and must not exceed one year. Once
payments have commenced over a period certain, the period certain may
not be changed even if the period certain is shorter than the maximum
permitted. Life annuity payments must satisfy the minimum distribution
incidental benefit requirements of A-2 of this section. Except as
otherwise provided in A-4(b) of this section, all payments (life and
period certain) also must either be nonincreasing or increase only in
accordance with one or more of the following:
(1) With an annual percentage increase that does not exceed the
annual percentage increase in a cost-of-living index that is based on
prices of all items and issued by the Bureau of Labor Statistics;
(2) To the extent of the reduction in the amount of the employee's
payments to provide for a survivor benefit upon death, but only if the
beneficiary whose life was being used to determine the period described
in section 401(a)(9)(A)(ii) over which payments were being made dies or
is no longer the employee's beneficiary pursuant to a qualified
domestic relations order within the meaning of section 414(p);
(3) To provide cash refunds of employee contributions upon the
employee's death; or
(4) To pay increased benefits that result from a plan amendment.
(b) Life annuity with period certain. The annuity may be a life
annuity (or joint and survivor annuity) with a period certain if the
life (or lives, if applicable) and period certain each meet the
requirements of paragraph (a) of this A-1. For purposes of this
section, if distributions are permitted to be made over the lives of
the employee and the designated beneficiary, references to a life
annuity include a joint and survivor annuity.
[[Page 19003]]
(c) Annuity commencement. (1) Annuity payments must commence on or
before the employee's required beginning date (within the meaning of A-
2 of Sec. 1.401(a)(9)-2). The first payment, which must be made on or
before the employee's required beginning date, must be the payment
which is required for one payment interval. The second payment need not
be made until the end of the next payment interval even if that payment
interval ends in the next calendar year. Similarly, in the case of
distributions commencing after death in accordance with section
401(a)(9)(B)(iii) and (iv), the first payment, which must be made on or
before the date determined under A-3(a) or (b) (whichever is
applicable) of Sec. 1.401(a)(9)-3, must be the payment which is
required for one payment interval. Payment intervals are the periods
for which payments are received, e.g., bimonthly, monthly, semi-
annually, or annually. All benefit accruals as of the last day of the
first distribution calendar year must be included in the calculation of
the amount of annuity payments for payment intervals ending on or after
the employee's required beginning date.
(2) This paragraph (c) is illustrated by the following example:
Example. A defined benefit plan (Plan X) provides monthly
annuity payments of $500 for the life of unmarried participants with
a 10-year period certain. An unmarried, retired participant (A) in
Plan X attains age 70\1/2\ in 2005. In order to meet the
requirements of this paragraph, the first monthly payment of $500
must be made on behalf of A on or before April 1, 2006, and the
payments must continue to be made in monthly payments of $500
thereafter for the life and 10-year period certain.
(d) Lump sum distributions. In the case of a lump sum distribution
of an employee's entire accrued benefit during a distribution calendar
year, the amount that is the required minimum distribution for the
distribution calendar year (and thus not eligible for rollover under
section 402(c)) is determined using either the rule in paragraph (d)(1)
or (d)(2) of this A-1.
(1) The portion of the single sum distribution that is a required
minimum distribution is determined by treating the single sum
distribution as a distribution from an individual account plan and
treating the amount of the single sum distribution as the employee's
account balance as of the end of the relevant valuation calendar year.
If the single sum distribution is being made in the calendar year
containing the required beginning date and the required minimum
distribution for the employee's first distribution calendar year has
not been distributed, the portion of the single sum distribution that
represents the required minimum distribution for the employee's first
and second distribution calendar years is not eligible for rollover.
(2) The portion of the single sum distribution that is a required
minimum distribution is permitted to be determined by expressing the
employee's benefit as an annuity that would satisfy this section with
an annuity starting date as of the first day of the distribution
calendar year for which the required minimum distribution is being
determined, and treating one year of annuity payments as the required
minimum distribution for that year, and not eligible for rollover. If
the single sum distribution is being made in the calendar year
containing the required beginning date and the required minimum
distribution for the employee's first distribution calendar year has
not been made, the benefit must be expressed as an annuity with an
annuity starting date as of the first day of the first distribution
calendar year and the payments for the first two calendar years would
be treated as required minimum distributions, and not eligible for
rollover.
(e) Death benefits. The rules prohibiting increasing payments under
an annuity apply to payments made upon the death of the employee. The
preceding sentence will not apply to an increase due to an ancillary
death benefit described in this paragraph (e). A death benefit with
respect to an employee's benefit is an ancillary death benefit for
purposes of this A-1 if--
(1) It is not paid as part of the employee's accrued benefit or
under any optional form of the employee's benefit, and
(2) The death benefit, together with any other potential payments
with respect to the employee's benefit that may be provided to a
survivor, satisfy the incidental benefit requirement of Sec. 1.401-
1(b)(1)(i),
(f) Additional guidance. Additional guidance regarding how
distributions under a defined benefit plan must be paid in order to
satisfy section 401(a)(9) may be issued by the Commissioner in revenue
rulings, notices, or other guidance published in the Internal Revenue
Bulletin. See Sec. 601.601(d)(2)(ii)(b) of this chapter.
Q-2. How must distributions in the form of a life (or joint and
survivor) annuity be made in order to satisfy the minimum distribution
incidental benefit (MDIB) requirement of section 401(a)(9)(G) and the
distribution component of the incidental benefit requirement of
Sec. 1.401-1(b)(1)(i)?
A-2. (a) Life annuity for employee. If the employee's benefit is
payable in the form of a life annuity for the life of the employee
satisfying section 401(a)(9) without regard to the MDIB requirement,
the MDIB requirement of section 401(a)(9)(G) will be satisfied.
(b) Joint and survivor annuity, spouse beneficiary. If the
employee's sole beneficiary, as of the annuity starting date for
annuity payments, is the employee's spouse and the distributions
satisfy section 401(a)(9) without regard to the MDIB requirement, the
distributions to the employee will be deemed to satisfy the MDIB
requirement of section 401(a)(9)(G). For example, if an employee's
benefit is being distributed in the form of a joint and survivor
annuity for the lives of the employee and the employee's spouse and the
spouse is the sole beneficiary of the employee, the amount of the
periodic payment payable to the spouse is permitted to be 100 percent
of the annuity payment payable to the employee regardless of the
difference in the ages between the employee and the employee's spouse.
The amount of the annuity payments must satisfy A-1 of this section (or
A-4 of this section, if applicable).
(c) Joint and survivor annuity, nonspouse beneficiary--(1)
Explanation of rule. If distributions commence under a distribution
option that is in the form of a joint and survivor annuity for the
joint lives of the employee and a beneficiary other than the employee's
spouse, the minimum distribution incidental benefit requirement will
not be satisfied as of the date distributions commence unless the
distribution option provides that annuity payments to be made to the
employee on and after the employee's required beginning date will
satisfy the conditions of this paragraph (c). The periodic annuity
payment payable to the survivor must not at any time on and after the
employee's required beginning date exceed the applicable percentage of
the annuity payment payable to the employee using the table in
paragraph (c)(2) of this A-2. The applicable percentage is based on the
excess of the age of the employee on the employee's birthday in a
calendar year over the age of the beneficiary as of the beneficiary's
birthday in that calendar year. Additionally, the amount of the annuity
payments must satisfy A-1 of this section (or A-4 of this section, if
applicable). In the case of an annuity which provides for increasing
payments, the requirement of this paragraph (c) will be satisfied if
the
[[Page 19004]]
increase is determined in the same manner for the employee and the
beneficiary.
(2) Table.
------------------------------------------------------------------------
Applicable
Excess of age of employee over age of beneficiary percentage
------------------------------------------------------------------------
10 years or less........................................... 100
11......................................................... 96
12......................................................... 93
13......................................................... 90
14......................................................... 87
15......................................................... 84
16......................................................... 82
17......................................................... 79
18......................................................... 77
19......................................................... 75
20......................................................... 73
21......................................................... 72
22......................................................... 70
23......................................................... 68
24......................................................... 67
25......................................................... 66
26......................................................... 64
27......................................................... 63
28......................................................... 62
29......................................................... 61
30......................................................... 60
31......................................................... 59
32......................................................... 59
33......................................................... 58
34......................................................... 57
35......................................................... 56
36......................................................... 56
37......................................................... 55
38......................................................... 55
39......................................................... 54
40......................................................... 54
41......................................................... 53
42......................................................... 53
43......................................................... 53
44 and greater............................................. 52
------------------------------------------------------------------------
(3) Example. This paragraph (c) is illustrated by the following
example:
Example. Distributions commence on January 1, 2003 to an
employee (Z), born March 1, 1937, after retirement at age 65. Z's
daughter (Y), born February 5, 1967, is Z's beneficiary. The
distributions are in the form of a joint and survivor annuity for
the lives of Z and Y with payments of $500 a month to Z and upon Z's
death of $500 a month to Y, i.e., the projected monthly payment to Y
is 100 percent of the monthly amount payable to Z. There is no
provision under the option for a change in the projected payments to
Y, and corresponding increase to Z, as of April 1, 2008, Z's
required beginning date. Accordingly, under A-10 of this section,
compliance with the rules of this section is determined as of the
annuity starting date. Consequently, as of January 1, 2003 (the
annuity starting date) the plan does not satisfy the MDIB
requirement because, as of such date, the distribution option
provides that, as of Z's required beginning date, the monthly
payment to Y upon Z's death will exceed 60 percent of Z's monthly
payment (the maximum percentage for a difference of ages of 30
years).
(d) Period certain and annuity features. If a distribution form
includes a life annuity and a period certain, the amount of the annuity
payments payable to the beneficiary need not be reduced during the
period certain, but in the case of a joint and survivor annuity with a
period certain, the amount of the annuity payments payable to the
beneficiary must satisfy paragraph (c) of this A-2 after the expiration
of the period certain.
(e) Deemed satisfaction of incidental benefit rule. Except in the
case of distributions with respect to an employee's benefit that
include an ancillary death benefit described in paragraph A-1(e) of
this section, to the extent the incidental benefit requirement of
Sec. 1.401-1(b)(1)(i) requires a distribution, that requirement is
deemed to be satisfied if distributions satisfy the minimum
distribution incidental benefit requirement of this A-2. If the
employee's benefits include an ancillary death benefit described in
paragraph A-1(e) of this section, the benefits must be distributed in
accordance with the incidental benefit requirement described in
Sec. 1.401-1(b)(1)(i) and must also satisfy the minimum distribution
incidental benefit requirement of this A-2.
Q-3. How long is a period certain under a defined benefit plan
permitted to extend?
A-3. (a) Distributions commencing during the employee's life. The
period certain for any annuity distributions commencing during the life
of the employee with an annuity starting date on or after the
employee's required beginning date generally is not permitted to exceed
the applicable distribution period for the employee (determined in
accordance with the Uniform Lifetime Table in A-2 of Sec. 1.401(a)(9)-
9) for the calendar year that contains the annuity starting date. See
A-10 for the rule for annuity payments with an annuity starting date
before the required beginning date. However, if the employee's sole
beneficiary is the employee's spouse and the annuity provides only a
period certain and no life annuity, the period certain is permitted to
be as long as the joint life and last survivor expectancy of the
employee and the employee's spouse, if longer than the applicable
distribution period for the employee.
(b) Distributions commencing after the employee's death. (1) If
annuity distributions commence after the death of the employee under
the life expectancy rule (under section 401(a)(9)(B)(iii) or (iv)), the
period certain for any distributions commencing after death cannot
exceed the applicable distribution period determined under A-5(b) of
Sec. 1.401(a)(9)-5 for the distribution calendar year that contains the
annuity starting date.
(2) If the annuity starting date is in a calendar year before the
first distribution calendar year, the period certain may not exceed the
life expectancy of the designated beneficiary using the beneficiary's
age in the year that contains the annuity starting date.
Q-4. Will a plan fail to satisfy section 401(a)(9) merely because
distributions are made from an annuity contract which is purchased from
an insurance company?
A-4. (a) General rule. A plan will not fail to satisfy section
401(a)(9) merely because distributions are made from an annuity
contract which is purchased with the employee's benefit by the plan
from an insurance company, as long as the payments satisfy the
requirements of this section. If the annuity contract is purchased
after the required beginning date, the first payment interval must
begin on or before the purchase date and the payment required for one
payment interval must be made no later than the end of such payment
interval. If the payments actually made under the annuity contract do
not meet the requirements of section 401(a)(9), the plan fails to
satisfy section 401(a)(9).
(b) Permitted increases. In the case of an annuity contract
purchased from an insurance company with an employee's account balance
under a defined contribution plan or under a section 403(a) annuity
plan, if the total future expected payments (determined in accordance
with paragraph (c)(3) of this A-4) exceed the account value being
annuitized, the payments under the annuity will not fail to satisfy the
nonincreasing payment requirement in A-1(a) of this section merely
because the payments are increased in accordance with one or more of
the following--
(1) By a constant percentage, applied not less frequently than
annually;
(2) To provide a payment upon the death of the employee equal to
the excess of the account value being annuitized over the total of
payments before the death of the employee.
(3) As a result of dividend payments or other payments that result
from actuarial gains, but only if actuarial gain is measured no less
frequently than annually and the resulting dividend payments or other
payments are either paid no later than the year following the year for
which the actuarial experience is measured or paid in the same form as
the payment of the annuity over the remaining period of the annuity
(beginning no later than the year
[[Page 19005]]
following the year for which the actuarial experience is measured);
(4) As a final payment under the annuity contract, but only if the
payment does not exceed the total future expected payments as of the
date of the payment; or
(5) As a partial distribution under the contract, but only if the
contract provides for a final payment as of the date of partial
distribution that satisfies paragraph (b)(4) of this A-4 and the future
payments under the contract are reduced by multiplying the otherwise
applicable future payments by a fraction, the numerator of which is the
excess of that final payment over the amount of the partial
distribution and the denominator of which is the amount of that final
payment. For the purpose of determining this ratio, the denominator is
reduced by the amount of any regularly scheduled payment due on the
date of the partial distribution.
(c) Definitions. For purposes of this A-4, the following
definitions apply--
(1) Account value being annuitized means the value of the
employee's entire interest (within the meaning of A-12 of this section)
being annuitized (valued as of the date annuity payments commence) or,
in the case of a defined contribution plan, the value of the employee's
account balance used to purchase an immediate annuity under the
contract.
(2) Actuarial gain means the difference between the actuarial
assumptions used in pricing (i.e., investment return, mortality,
expense, and other similar assumptions) and the actual experience with
respect to those assumptions. Actuarial gain also includes differences
between the actuarial assumptions used in pricing when an annuity was
purchased and actuarial assumptions used in pricing annuities at the
time the actuarial gain is determined.
(3) Total future expected payments means the total future payments
to be made under the annuity contract as of the date of the
determination, calculated using the Single Life Table in A-1 of
Sec. 1.401(a)(9)-9 (or, if applicable, the Joint and Last Survivor
Table in A-3 of in Sec. 1.401(a)(9)-9) for annuitants who are still
alive, without regard to any increases in annuity payments after the
date of determination, and taking into account any remaining period
certain.
(d) Examples. This A-4 is illustrated by the following examples:
Example 1. A participant (Z1) in defined contribution plan X
attains age 70 on March 5, 2005, and thus, attains age 70\1/2\ in
2005. Z1 elects to purchase annuity Contract Y1 from Insurance
Company W in 2005. Contract Y1 is a life annuity contract with a 10-
year period certain. Contract Y1 provides for an initial annual
payment calculated with an assumed interest rate (AIR) of 3 percent.
Subsequent payments are determined by multiplying the prior year's
payment by a fraction the numerator of which is 1 plus the actual
return on the separate account assets underlying Contract Y1 since
the preceding payment and the denominator of which is 1 plus the AIR
during that period. The value of Z1's account balance in Plan X at
the time of purchase is $105,000, and the purchase price of Contract
Y1 is $105,000. Contract Y1 provides Z1 with an initial payment of
$7,200 at the time of purchase in 2005. The total future expected
payments to Z1 under Contract Y1 are $122,400, calculated as the
initial payment of $7,200 multiplied by the age 70 life expectancy
of 17. Because the total future expected payments on the purchase
date exceed the account value used to purchase Contract Y1 and
payments may only increase as a result of actuarial gain, with such
increases, beginning no later than the next year, paid in the same
form as the payment of the annuity over the remaining period of the
annuity, distributions received by Z1 from Contract Y1 meet the
requirements under paragraph (b)(3) of this A-4.
Example 2. A participant (Z2) in defined contribution plan X
attains age 70 on May 1, 2005, and thus, attains age 70\1/2\ in
2005. Z2 elects to purchase annuity Contract Y2 from Insurance
Company W in 2005. Contract Y2 is a participating life annuity
contract with a 10-year period certain. Contract Y2 provides for
level annual payments with dividends paid in a lump sum in the year
after the year for which the actuarial experience is measured or
paid out levelly beginning in the year after the year for which the
actuarial gain is measured over the remaining lifetime and period
certain, i.e., the period certain ends at the same time as the
original period certain. Dividends are determined annually by the
Board of Directors of Company W based upon a comparison of actual
actuarial experience to expected actuarial experience in the past
year. The value of Z2's account balance in Plan X at the time of
purchase is $265,000, and the purchase price of Contract Y2 is
$265,000. Contract Y2 provides Z2 with an initial payment of $16,000
in 2005. The total future expected payments to Z2 under Contract Y2
are calculated as the annual initial payment of $16,000 multiplied
by the age 70 life expectancy of 17 for a total of $272,000. Because
the total future expected payments on the purchase date exceeds the
account value used to purchase Contract Y2 and payments may only
increase as a result of actuarial gain, with such increases,
beginning no later than the next year, paid in the same form as the
payment of the annuity over the remaining period of the annuity,
distributions received by Z2 from Contract Y2 meet the requirements
under paragraph (b)(3) of this A-4.
Example 3. The facts are the same as in Example 2 except that
the annuity provides a dividend accumulation option under which Z2
may defer receipt of the dividends to a time selected by Z2. Because
the dividend accumulation option permits dividends to be paid later
than the end of the year following the year for which the actuarial
experience is measured or as a stream of payments that only increase
as a result of actuarial gain, with such increases beginning no
later than the next year, paid in the same form as the payment of
the annuity over the remaining period of the annuity in Example 2,
the dividend accumulation option does not meet the requirements of
paragraph (b)(3) of this A-4. Neither does the dividend accumulation
option fit within any of the other increases described in paragraph
(b) of this A-4. Accordingly, the dividend accumulation option
causes the contract, and consequently any distributions from the
contract, to fail to meet the requirements of this A-4 and thus fail
to satisfy the requirements of section 401(a)(9).
Example 4. The facts are the same as in Example 2 except that
the annuity provides an option under which actuarial gain under the
contract is used to provide additional death benefit protection for
Z2. Because this option permits payments as a result of actuarial
gain to be paid later than the end of the year following the year
for which the actuarial experience is measured or as a stream of
payments that only increase as a result of actuarial gain, with such
increases beginning no later than the next year, paid in the same
form as the payment of the annuity over the remaining period of the
annuity in Example 2, the option does not meet the requirements of
paragraph (b)(3) of this A-4. Neither does the option fit within any
of the other increases described in paragraph (b) of this A-4.
Accordingly, the addition of the option causes the contract, and
consequently any distributions from the contract, to fail to meet
the requirements of this A-4 and thus fail to satisfy the
requirements of section 401(a)(9).
Example 5. A participant (Z3) in defined contribution plan X
attains age 70\1/2\ in 2005. Z3 elects to purchase annuity contract
Y3 from Insurance Company W. Contract Y3 is a life annuity contract
with a 20-year period certain (which does not exceed the maximum
period certain permitted under A-3(a) of this section) with fixed
annual payments increasing 3 percent each year. The value of Z3's
account balance in Plan X at the time of purchase is $110,000, and
the purchase price of Contract Y3 is $110,000. Contract Y3 provides
Z3 with an initial payment of $6,000 at the time of purchase in
2005. The total future expected payments to Z3 under Contract Y3 are
$120,000, calculated as the initial annual payment of $6,000
multiplied by the period certain of 20 years. Because the total
future expected payments on the purchase date exceed the account
value used to purchase Contract Y3 and payments only increase as a
constant percentage applied not less frequently than annually,
distributions received by Z3 from Contract Y3 meet the requirements
under paragraph (b)(1) of this A-4.
Example 6. The facts are the same as in Example 5 except that
the initial payment is $5,400 and the annual rate of increase is 4
percent. In this example, the total future expected payments are
$108,000, calculated as the initial payment of $5,400 multiplied by
the period certain of 20 years. Because the
[[Page 19006]]
total future expected payments are less than the account value of
$110,000 used to purchase Contract Y3, distributions received by Z3
do not meet the requirements underparagraph (b) of this A-4 and thus
fail to meet the requirements of section 401(a)(9).
Example 7. (i) A participant (Z4) in defined contribution Plan X
attains age 78 in 2005. Z4 elects to purchase Contract Y4 from
Insurance Company W. Contract Y4 provides for fixed annual payments
for 20 years (which does not exceed the maximum period certain
permitted under A-3(a) of this section) and provides that, on any
payment date, before receiving his payment due on that date, Z4 may
cancel Contract Y4 and receive as a final payment an amount equal to
his remaining payments discounted with interest at 4 percent. The
value of Z4's account balance in Plan X at the time of purchase is
$500,000, and the purchase price of Contract Y4 is $500,000.
Contract Y4 provides Z4 with an initial payment in 2005 of $35,376.
(ii) Under Contract Y4, the amount that Z4 could receive upon
cancellation of Contract Y4 as a final payment, for all possible
cancellation dates, will always be less than the total future
expected payments on such cancellation date. This is so because the
total future expected payments on any such cancellation date is
equal to the remaining payments on such date, not discounted, an
amount always greater than the final payment amount of these same
remaining payments, discounted at 4 percent.
(iii) The total future expected payments to Z4 under Y4 are
$707,520, calculated as the annualized initial payment of $35,376
multiplied by the period certain of 20 years. Because the total
future expected payments on the purchase date exceed the account
value used to purchase Contract Y4 and it is not possible for a
final payment under Contract Y4 to ever exceed the total future
expected payments on the day of such final payment, distributions
received by Z4 under Contract Y4 meet the requirements under
paragraph (b)(4) of this A-4.
(iv) As an illustration of the above, if Participant Z4 were to
elect to cancel Contract Y4 on the day he was due to receive his
eleventh payment, his contractual final payment would be $298,408
(including the $35,376 he was due to receive on that day) which is
less than his total future expected payments on that date
($353,760). These amounts are determined as follows. On the day Z4
was to receive his eleventh payment, Z4 was entitled to receive ten
future payments of $35,376 (including the payment he was due to
receive on that day). The discounted value of an annuity of ten
payments of $35,376, with the first payment due on the date of the
calculation of the discounted value, and a discount rate of 4
percent, is $298,408. The product of the payment amount of $35,376
multiplied by 10, the number of future payments to which Z4 would be
entitled on the day Z4 was to receive the eleventh payment, is
$353,760.
Example 8. (i) The facts are the same as in Example 7 except
that the annuity provides an option for partial distributions of
less than the final payment amount (the maximum distribution), with
payments following such a partial distribution reduced by
multiplying the otherwise applicable future payments by a fraction,
the numerator of which is the excess of the final payment amount
over the amount of the partial distribution and the denominator of
which is the amount of that final payment. For the purposes of
determining this ratio, the denominator is reduced by the amount of
any regularly scheduled payment due on the date of partial
distribution. This partial distribution option meets the
requirements of paragraph (b)(5) of this A-4.
(ii) To illustrate the workings of this partial distribution
option, assume Z4 takes a distribution of $100,000 on the date he
was to receive his eleventh payment of $35,376. In such a case,
under this partial distribution option, his remaining nine payments,
absent any other extraordinary distributions, will be reduced to
$26,685. This amount is determined as follows. The numerator of the
ratio described in the paragraph above is equal to $ 198,408 (that
is, the excess of a total distribution of $298,408 over the partial
distribution of $100,000). The denominator of the ratio described in
the paragraph above is equal to $263,032 (that is, the maximum
distribution on the date of the partial distribution of $298,408
(see Example 6) less the regularly scheduled payment of $35,376).
Thus, future payments must be multiplied by 75.43 percent (that is,
$198,408 divided by $263,032). Thus, his future payments must be
$26,685 (that is, $35,376 multiplied by 75.43 percent).
Example 9. (i) A participant (Z5) in defined contribution plan X
attains age 70\1/2\ in 2005. Z5 elects to purchase annuity Contract
Y5 from Insurance Company W in 2005. Contract Y5 is a participating
life annuity contract with a 20-year period certain. Contract Y5
provides an initial payment at the time of purchase of 5 percent of
the purchase price, a second payment one year from the time of
purchase of two percent of the purchase price, and 18 succeeding
annual payments each increasing at a constant percentage rate of 16
percent from the preceding payment.
(ii) Contract Y5 fails to meet the requirements of paragraph (b)
of this A-4, and thus fails to satisfy the requirements of section
401(a)(9), because the expected total payments without regard to any
increases in the annuity payment is only 43 percent of the purchase
price (that is, an amount not exceeding the account value used to
purchase the annuity), calculated as 5 percent of the purchase price
in year one and two percent of the purchase price in each of years
two through twenty (or, .05 multiplied by 1 year plus .02 multiplied
by 19 years).
Q-5. In the case of annuity distributions under a defined benefit
plan, how must additional benefits that accrue after the employee's
first distribution calendar year be distributed in order to satisfy
section 401(a)(9)?
A-5. (a) In the case of annuity distributions under a defined
benefit plan, if any additional benefits accrue in a calendar year
after the employee's first distribution calendar year, distribution of
the amount that accrues in a calendar year must commence in accordance
with A-1 of this section beginning with the first payment interval
ending in the calendar year immediately following the calendar year in
which such amount accrues.
(b) A plan will not fail to satisfy section 401(a)(9) merely
because there is an administrative delay in the commencement of the
distribution of the additional benefits accrued in a calendar year,
provided that the actual payment of such amount commences as soon as
practicable. However, payment must commence no later than the end of
the first calendar year following the calendar year in which the
additional benefit accrues, and the total amount paid during such first
calendar year must be no less than the total amount that was required
to be paid during that year under A-5(a) of this section.
Q-6. If a portion of an employee's benefit is not vested as of
December 31 of a distribution calendar year, how is the determination
of the required minimum distribution affected?
A-6. In the case of annuity distributions from a defined benefit
plan, if any portion of the employee's benefit is not vested as of
December 31 of a distribution calendar year, the portion that is not
vested as of such date will be treated as not having accrued for
purposes of determining the required minimum distribution for that
distribution calendar year. When an additional portion of the
employee's benefit becomes vested, such portion will be treated as an
additional accrual. See A-5 of this section for the rules for
distributing benefits which accrue under a defined benefit plan after
the employee's first distribution calendar year.
Q-7. If an employee (other than a 5-percent owner) retires after
the calendar year in which the employee attains age 70\1/2\, for what
period must the employee's accrued benefit under a defined benefit plan
be actuarially increased?
A-7. (a) Actuarial increase starting date. If an employee (other
than a 5-percent owner) retires after the calendar year in which the
employee attains age 70\1/2\, in order to satisfy section
401(a)(9)(C)(iii), the employee's accrued benefit under a defined
benefit plan must be actuarially increased to take into account any
period after age 70\1/2\ in which the employee was not receiving any
benefits under the plan. The actuarial increase required to satisfy
section 401(a)(9)(C)(iii) must be provided for the period starting on
the April 1 following the calendar year in which the employee attains
age 70\1/2\, or January 1, 1997, if later.
[[Page 19007]]
(b) Actuarial increase ending date. The period for which the
actuarial increase must be provided ends on the date on which benefits
commence after retirement in an amount sufficient to satisfy section
401(a)(9).
(c) Nonapplication to plan providing same required beginning date
for all employees. If, as permitted under A-2(e) of Sec. 1.401(a)(9)-2,
a plan provides that the required beginning date for purposes of
section 401(a)(9) for all employees is April 1 of the calendar year
following the calendar year in which the employee attains age 70\1/2\
(regardless of whether the employee is a 5-percent owner) and the plan
makes distributions in an amount sufficient to satisfy section
401(a)(9) using that required beginning date, no actuarial increase is
required under section 401(a)(9)(C)(iii).
(d) Nonapplication to governmental and church plans. The actuarial
increase required under this A-7 does not apply to a governmental plan
(within the meaning of section 414(d)) or a church plan. For purposes
of this paragraph, the term church plan means a plan maintained by a
church for church employees, and the term church means any church (as
defined in section 3121(w)(3)(A)) or qualified church-controlled
organization (as defined in section 3121(w)(3)(B)).
Q-8. What amount of actuarial increase is required under section
401(a)(9)(C)(iii)?
A-8. In order to satisfy section 401(a)(9)(C)(iii), the retirement
benefits payable with respect to an employee as of the end of the
period for actuarial increases (described in A-7 of this section) must
be no less than: the actuarial equivalent of the employee's retirement
benefits that would have been payable as of the date the actuarial
increase must commence under paragraph (a) of A-7 of this section if
benefits had commenced on that date; plus the actuarial equivalent of
any additional benefits accrued after that date; reduced by the
actuarial equivalent of any distributions made with respect to the
employee's retirement benefits after that date. Actuarial equivalence
is determined using the plan's assumptions for determining actuarial
equivalence for purposes of satisfying section 411.
Q-9. How does the actuarial increase required under section
401(a)(9)(C)(iii) relate to the actuarial increase required under
section 411?
A-9. In order for any of an employee's accrued benefit to be
nonforfeitable as required under section 411, a defined benefit plan
must make an actuarial adjustment to an accrued benefit the payment of
which is deferred past normal retirement age. The only exception to
this rule is that generally no actuarial adjustment is required to
reflect the period during which a benefit is suspended as permitted
under section 203(a)(3)(B) of the Employee Retirement Income Security
Act of 1974 (ERISA). The actuarial increase required under section
401(a)(9)(C)(iii) for the period described in A-7 of this section is
generally the same as, and not in addition to, the actuarial increase
required for the same period under section 411 to reflect any delay in
the payment of retirement benefits after normal retirement age.
However, unlike the actuarial increase required under section 411, the
actuarial increase required under section 401(a)(9)(C)(iii) must be
provided even during any period during which an employee's benefit has
been suspended in accordance with ERISA section 203(a)(3)(B).
Q-10. What rule applies if distributions commence to an employee on
a date before the employee's required beginning date over a period
permitted under section 401(a)(9)(A)(ii) and the distribution form is
an annuity under which distributions are made in accordance with the
provisions of A-1 (and if applicable A-4) of this section?
A-10. (a) General rule. If distributions commence to an employee on
an irrevocable basis (except for acceleration) on a date before the
employee's required beginning date over a period permitted under
section 401(a)(9)(A)(ii) and the distribution form is an annuity under
which distributions are made in accordance with the provisions of A-1
(and, if applicable, A-4) of this section, the annuity starting date
will be treated as the required beginning date for purposes of applying
the rules of this section and Sec. 1.401(a)(9)-2. Thus, for example,
the designated beneficiary distributions will be determined as of the
annuity starting date. Similarly, if the employee dies after the
annuity starting date but before the required beginning date determined
under A-2 of Sec. 1.401(a)(9)-2, after the employee's death, the
remaining portion of the employee's interest must continue to be
distributed in accordance with this section over the remaining period
over which distributions commenced (single or joint lives or period
certain, as applicable). The rules in Sec. 1.401(a)(9)-3 and section
401(a)(9)(B)(ii) or (iii) and (iv) do not apply.
(b) Period certain. If as of the employee's birthday in the year
that contains the annuity starting date, the age of the employee is
under 70, the following rule applies in applying the rule in paragraph
(a) of A-3 of this section. The applicable distribution period for the
employee (determined in accordance with the Uniform Lifetime Table in
A-2 of Sec. 1.401(a)(9)-9) is the distribution period for age 70 using
the Uniform Lifetime Table in A-2 of Sec. 1.401(a)(9)-9 plus the excess
of 70 over age of the employee as of the employee's birthday in the
year that contains the annuity starting date.
Q-11. What rule applies if distributions commence on an irrevocable
basis (except for acceleration) to the surviving spouse of an employee
over a period permitted under section 401(a)(9)(B)(iii)(II) before the
date on which distributions are required to commence and the
distribution form is an annuity under which distributions are made as
of the date distributions commence in accordance with the provisions of
A-1 (and if applicable A-4) of this section.
A-11.If distributions commence to the surviving spouse of an
employee on an irrevocable basis (except for acceleration) over a
period permitted under section 401(a)(9)(B)(iii)(II) before the date on
which distributions are required to commence and the distribution form
is an annuity under which distributions are made as of the date
distributions commence in accordance with the provisions of A-1 (and if
applicable A-4) of this section, distributions will be considered to
have begun on the actual commencement date for purposes of section
401(a)(9)(B)(iv)(II). Consequently, in such case, A-5 of
Sec. 1.401(a)(9)-3 and section 401(a)(9)(B)(ii) and (iii) will not
apply upon the death of the surviving spouse as though the surviving
spouse were the employee. Instead, the annuity distributions must
continue to be made, in accordance with the provisions of A-1 (and if
applicable A-4) of this section over the remaining period over which
distributions commenced (single life or period certain, as applicable).
Q-12. In the case of an annuity contract under an individual
account plan from which annuity payments have not commenced to on an
irrevocable basis (except for acceleration), how is section 401(a)(9)
satisfied with respect to the employee's or beneficiary's entire
interest under the annuity contract for the period prior to the date
annuity payments so commence?
A-12. Prior to the date that annuity payments commence on an
irrevocable basis (except for acceleration) under an individual account
plan from an annuity contract, the interest of an employee or
beneficiary under that contract is treated as an individual account for
purposes of section 401(a)(9). Thus, the required minimum
[[Page 19008]]
distribution for any year with respect to that interest is determined
under Sec. 1.401(a)(9)-5 rather than this section. For purposes of
applying the rules in Sec. 1.401(a)(9)-5, the entire interest under the
annuity contract as of December 31 of the relevant valuation calendar
year is treated as the account balance for the valuation calendar year
described in A-3 of Sec. 1.401(a)(9)-5. The entire interest under an
annuity contract is the dollar amount credited to the employee or
beneficiary under the contract plus the actuarial value of any other
benefits (such as minimum survivor benefits) that will be provided
under the contract. See A-1 of Sec. 1.401(a)(9)-5 for rules relating to
the satisfaction of section 401(a)(9) in the year that annuity payments
commence and A-2(a)(3) of Sec. 1.401(a)(9)-8.
Sec. 1.401(a)(9)-7 Rollovers and transfers.
Q-1. If an amount is distributed by one plan (distributing plan)
and is rolled over to another plan, is the required minimum
distribution under the distributing plan affected by the rollover?
A-1. No, if an amount is distributed by one plan and is rolled over
to another plan, the amount distributed is still treated as a
distribution by the distributing plan for purposes of section
401(a)(9), notwithstanding the rollover. See A-1 of Sec. 1.402(c)-2 for
the definition of a rollover and A-7 of Sec. 1.402(c)-2 for rules for
determining the portion of any distribution that is not eligible for
rollover because it is a required minimum distribution.
Q-2. If an amount is distributed by one plan (distributing plan)
and is rolled over to another plan (receiving plan), how are the
benefit and the required minimum distribution under the receiving plan
affected?
A-2. If an amount is distributed by one plan (distributing plan)
and is rolled over to another plan (receiving plan), the benefit of the
employee under the receiving plan is increased by the amount rolled
over for purposes of determining the required minimum distribution for
the calendar year immediately following the calendar year in which the
amount rolled over is distributed. If the amount rolled over is
received after the last valuation date in the calendar year under the
receiving plan, the benefit of the employee as of such valuation date,
adjusted in accordance with A-3 of Sec. 1.401(a)(9)-5, will be
increased by the rollover amount valued as of the date of receipt. In
addition, if the amount rolled over is received in a different calendar
year from the calendar year in which it is distributed, the amount
rolled over is deemed to have been received by the receiving plan in
the calendar year in which it was distributed.
Q-3. In the case of a transfer of an amount of an employee's
benefit from one plan (transferor plan) to another plan (transferee
plan), are there any special rules for satisfying section 401(a)(9) or
determining the employee's benefit under the transferor plan?
A-3. (a) In the case of a transfer of an amount of an employee's
benefit from one plan (transferor plan) to another (transferee plan),
the transfer is not treated as a distribution by the transferor plan
for purposes of section 401(a)(9). Instead, the benefit of the employee
under the transferor plan is decreased by the amount transferred.
However, if any portion of an employee's benefit is transferred in a
distribution calendar year with respect to that employee, in order to
satisfy section 401(a)(9), the transferor plan must determine the
amount of the required minimum distribution with respect to that
employee for the calendar year of the transfer using the employee's
benefit under the transferor plan before the transfer. Additionally, if
any portion of an employee's benefit is transferred in the employee's
second distribution calendar year but on or before the employee's
required beginning date, in order to satisfy section 401(a)(9), the
transferor plan must determine the amount of the minimum distribution
requirement for the employee's first distribution calendar year based
on the employee's benefit under the transferor plan before the
transfer. The transferor plan may satisfy the minimum distribution
requirement for the calendar year of the transfer (and the prior year
if applicable) by segregating the amount which must be distributed from
the employee's benefit and not transferring that amount. Such amount
may be retained by the transferor plan and must be distributed on or
before the date required under section 401(a)(9).
(b) For purposes of determining any required minimum distribution
for the calendar year immediately following the calendar year in which
the transfer occurs, in the case of a transfer after the last valuation
date for the calendar year of the transfer under the transferor plan,
the benefit of the employee as of such valuation date, adjusted in
accordance with A-3 of Sec. 1.401(a)(9)-5, will be decreased by the
amount transferred, valued as of the date of the transfer.
Q-4. If an amount of an employee's benefit is transferred from one
plan (transferor plan) to another plan (transferee plan), how are the
benefit and the required minimum distribution under the transferee plan
affected?
A-4. In the case of a transfer from one plan (transferor plan) to
another (transferee plan), the benefit of the employee under the
transferee plan is increased by the amount transferred in the same
manner as if it were a plan receiving a rollover contribution under A-2
of this section.
Q-5. How is a spinoff, merger or consolidation (as defined in
Sec. 1.414(l)-1) treated for purposes of determining an employee's
benefit and required minimum distribution under section 401(a)(9)?
A-5. For purposes of determining an employee's benefit and required
minimum distribution under section 401(a)(9), a spinoff, a merger, or a
consolidation (as defined in Sec. 1.414(l)-1) will be treated as a
transfer of the benefits of the employees involved. Consequently, the
benefit and required minimum distribution of each employee involved
under the transferor and transferee plans will be determined in
accordance with A-3 and A-4 of this section.
Sec. 1.401(a)(9)-8 Special rules.
Q-1. What distribution rules apply if an employee is a participant
in more than one plan?
A-1. If an employee is a participant in more than one plan, the
plans in which the employee participates are not permitted to be
aggregated for purposes of testing whether the distribution
requirements of section 401(a)(9) are met. The distribution of the
benefit of the employee under each plan must separately meet the
requirements of section 401(a)(9). For this purpose, a plan described
in section 414(k) is treated as two separate plans, a defined
contribution plan to the extent benefits are based on an individual
account and a defined benefit plan with respect to the remaining
benefits.
Q-2. If an employee's benefit under a defined contribution plan is
divided into separate accounts (or under a defined benefit plan is
divided into segregated shares), do the distribution rules in section
401(a)(9) and these regulations apply separately to each separate
account?
A-2. (a) Defined contribution plan. (1) Except as otherwise
provided in this A-2, if an employee's benefit under a defined
contribution plan is divided into separate accounts under the plan, the
separate accounts will be aggregated for purposes of satisfying the
rules in section 401(a)(9). Thus, except as otherwise provided in this
A-2, all separate accounts, including a separate account for employee
contributions
[[Page 19009]]
under section 72(d)(2), will be aggregated for purposes of section
401(a)(9).
(2) If the employee's benefit in a defined contribution plan is
divided into separate accounts and the beneficiaries with respect to
one separate account differ from the beneficiaries with respect to the
other separate accounts of the employee under the plan, for years
subsequent to the calendar year containing the date on which the
separate accounts were established, or date of death if later, such
separate account under the plan is not aggregated with the other
separate accounts under the plan in order to determine whether the
distributions from such separate account under the plan satisfy section
401(a)(9). Instead, the rules in section 401(a)(9) separately apply to
such separate account under the plan. However, the applicable
distribution period for each such separate account is determined
disregarding the other beneficiaries of the employee's benefit only if
the separate account is established on a date no later than the last
day of the year following the calendar year of the employee's death.
For example, if, in the case of a distribution described in section
401(a)(9)(B)(iii) and (iv), the only beneficiary of a separate account
under the plan established on a date no later than the end of the year
following the calendar year of the employee's death is the employee's
surviving spouse, and beneficiaries other than the surviving spouse are
designated with respect to the other separate accounts with respect to
the employee, distribution of the spouse's separate account under the
plan need not commence until the date determined under the first
sentence in A-3(b) of Sec. 1.401(a)(9)-3, even if distribution of the
other separate accounts under the plan must commence at an earlier
date. Similarly, in the case of a distribution after the death of an
employee to which section 401(a)(9)(B)(i) does not apply, distribution
from a separate account of an employee established on a date no later
than the end of the year following the year of the employee's death may
be made over a beneficiary's life expectancy in accordance with section
401(a)(9)(B)(iii) and (iv) even though distributions from other
separate accounts under the plan with different beneficiaries are being
made in accordance with the 5-year rule in section 401(a)(9)(B)(ii).
(3) A portion of an employee's account balance under a defined
contribution plan is permitted to be used to purchase an annuity
contract while another portion stays in the account. In that case, the
remaining account under the plan must be distributed in accordance with
Sec. 1.401(a)(9)-5 in order to satisfy section 401(a)(9) and the
annuity payments under the annuity contract must satisfy
Sec. 1.401(a)(9)-6T in order to satisfy section 401(a)(9).
(b) Defined benefit plan. The rules of paragraph (a)(2) and (3) of
this A-2 also apply to benefits under a defined benefit plan where the
benefits under the plan are separated into separate identifiable
components which are separately distributed.
Q-3. What are separate accounts for purposes of section 401(a)(9)?
A-3. For purposes of section 401(a)(9), separate accounts in an
employee's account are separate portions of an employee's benefit
reflecting the separate interests of the employee's beneficiaries under
the plan as of the date of the employee's death for which separate
accounting is maintained. The separate accounting must allocate all
post-death investment gains and losses, contributions, and forfeitures,
for the period prior to the establishment of the separate accounts on a
pro rata basis in a reasonable and consistent manner among the separate
accounts. However, once the separate accounts are actually established,
the separate accounting can provide for separate investments for each
separate account under which gains and losses from the investment of
the account are only allocated to that account, or investment gain or
losses can continue to be allocated among the separate accounts on a
pro rata basis. A separate accounting must allocate any post-death
distribution to the separate account of the beneficiary receiving that
distribution.
Q-4. If a distribution is required to be made to an employee by
section 401(a)(9)(A) or is required to be made to a surviving spouse
under section 401(a)(9)(B), must the distribution be made even if the
employee, or spouse where applicable, fails to consent to a
distribution while a benefit is immediately distributable?
A-4. Yes, section 411(a)(11) and section 417(e) (see
Secs. 1.411(a)(11)-1(c)(2) and 1.417(e)-1(c)) require employee and
spousal consent to certain distributions of plan benefits while such
benefits are immediately distributable. If an employee's normal
retirement age is later than the employee's required beginning date
and, therefore, benefits are still immediately distributable, the plan
must, nevertheless, distribute plan benefits to the employee (or where
applicable, to the spouse) in a manner that satisfies the requirements
of section 401(a)(9). Section 401(a)(9) must be satisfied even though
the employee (or spouse, where applicable) fails to consent to the
distribution. In such a case, the plan may distribute in the form of a
qualified joint and survivor annuity (QJSA) or in the form of a
qualified preretirement survivor annuity (QPSA), as applicable, and the
consent requirements of sections 411(a)(11) and 417(e) are deemed to be
satisfied if the plan has made reasonable efforts to obtain consent
from the employee (or spouse if applicable) and if the distribution
otherwise meets the requirements of section 417. If, because of section
401(a)(11)(B), the plan is not required to distribute in the form of a
QJSA to a employee or a QPSA to a surviving spouse, the plan may
distribute the required minimum distribution amount to satisfy section
401(a)(9) and the consent requirements of sections 411(a)(11) and
417(e) are deemed to be satisfied if the plan has made reasonable
efforts to obtain consent from the employee (or spouse if applicable)
and if the distribution otherwise meets the requirements of section
417.
Q-5. Who is an employee's spouse or surviving spouse for purposes
of section 401(a)(9)?
A-5. Except as otherwise provided in A-6(a) of this section (in the
case of distributions of a portion of an employee's benefit payable to
a former spouse of an employee pursuant to a qualified domestic
relations order), for purposes of section 401(a)(9), an individual is a
spouse or surviving spouse of an employee if such individual is treated
as the employee's spouse under applicable state law. In the case of
distributions after the death of an employee, for purposes of
determining whether, under the life expectancy rule in section
401(a)(9)(B)(iii) and (iv), the provisions of section 401(a)(9)(B)(iv)
apply, the spouse of the employee is determined as of the date of death
of the employee.
Q-6. In order to satisfy section 401(a)(9), are there any special
rules which apply to the distribution of all or a portion of an
employee's benefit payable to an alternate payee pursuant to a
qualified domestic relations order as defined in section 414(p) (QDRO)?
A-6. (a) A former spouse to whom all or a portion of the employee's
benefit is payable pursuant to a QDRO will be treated as a spouse
(including a surviving spouse) of the employee for purposes of section
401(a)(9), including the minimum distribution incidental benefit
requirement, regardless of whether the QDRO specifically provides that
the former spouse is treated as the
[[Page 19010]]
spouse for purposes of sections 401(a)(11) and 417.
(b)(1) If a QDRO provides that an employee's benefit is to be
divided and a portion is to be allocated to an alternate payee, such
portion will be treated as a separate account (or segregated share)
which separately must satisfy the requirements of section 401(a)(9) and
may not be aggregated with other separate accounts (or segregated
shares) of the employee for purposes of satisfying section 401(a)(9).
Except as otherwise provided in paragraph (b)(2) of this A-6,
distribution of such separate account allocated to an alternate payee
pursuant to a QDRO must be made in accordance with section 401(a)(9).
For example, in general, distribution of such account will satisfy
section 401(a)(9)(A) if required minimum distributions from such
account during the employee's lifetime begin not later than the
employee's required beginning date and the required minimum
distribution is determined in accordance with Sec. 1.401(a)(9)-5 for
each distribution calendar year (using an applicable distribution
period determined under A-4 of Sec. 1.401(a)(9)-5 for the employee in
the distribution calendar year either using the Uniform Lifetime Table
in A-2 of Sec. 1.401(a)(9)-9 or using the joint life expectancy of the
employee and a spousal alternate payee in the distribution calendar
year if the spousal alternate payee is more than 10 years younger than
the employee). The determination of whether distribution from such
account after the death of the employee to the alternate payee will be
made in accordance with section 401(a)(9)(B)(i) or section
401(a)(9)(B)(ii) or (iii) and (iv) will depend on whether distributions
have begun as determined under A-6 of Sec. 1.401(a)(9)-2 (which
provides, in general, that distributions are not treated as having
begun until the employee's required beginning date even though payments
may actually have begun before that date). For example, if the
alternate payee dies before the employee and distribution of the
separate account allocated to the alternate payee pursuant to the QDRO
is to be made to the alternate payee's beneficiary, such beneficiary
may be treated as a designated beneficiary for purposes of determining
the minimum distribution required from such account after the death of
the employee if the beneficiary of the alternate payee is an individual
and if such beneficiary is a beneficiary under the plan or specified to
or in the plan. Specification in or pursuant to the QDRO is treated as
specification to the plan.
(2) Distribution of the separate account allocated to an alternate
payee pursuant to a QDRO will satisfy the requirements of section
401(a)(9)(A)(ii) if such account is to be distributed, beginning not
later than the employee's required beginning date, over the life of the
alternate payee (or over a period not extending beyond the life
expectancy of the alternate payee). Also, if the plan permits the
employee to elect whether distribution upon the death of the employee
will be made in accordance with the 5-year rule in section
401(a)(9)(B)(ii) or the life expectancy rule in section
401(a)(9)(B)(iii) and (iv) pursuant to A-4(c) of Sec. 1.401(a)(9)-3,
such election is to be made only by the alternate payee for purposes of
distributing the separate account allocated to the alternate payee
pursuant to the QDRO. If the alternate payee dies after distribution of
the separate account allocated to the alternate payee pursuant to a
QDRO has begun (determined under A-6 of Sec. 1.401(a)(9)-2) but before
the employee dies, distribution of the remaining portion of that
portion of the benefit allocated to the alternate payee must be made in
accordance with the rules in Sec. 1.401(a)(9)-5 or 1.401(a)(9)-6T for
distributions during the life of the employee. Only after the death of
the employee is the amount of the required minimum distribution
determined in accordance with the rules of section 401(a)(9)(B).
(c) If a QDRO does not provide that an employee's benefit is to be
divided but provides that a portion of an employee's benefit (otherwise
payable to the employee) is to be paid to an alternate payee, such
portion will not be treated as a separate account (or segregated share)
of the employee. Instead, such portion will be aggregated with any
amount distributed to the employee and will be treated as having been
distributed to the employee for purposes of determining whether section
401(a)(9) has been satisfied with respect to that employee.
Q-7. Will a plan fail to satisfy section 401(a)(9) merely because
it fails to distribute an amount otherwise required to be distributed
by section 401(a)(9) during the period in which the issue of whether a
domestic relations order is a QDRO is being determined?
A-7. A plan will not fail to satisfy section 401(a)(9) merely
because it fails to distribute an amount otherwise required to be
distributed by section 401(a)(9) during the period in which the issue
of whether a domestic relations order is a QDRO is being determined
pursuant to section 414(p)(7), provided that the period does not extend
beyond the 18-month period described in section 414(p)(7)(E). To the
extent that a distribution otherwise required under section 401(a)(9)
is not made during this period, any segregated amounts, as defined in
section 414(p)(7)(A), will be treated as though the amounts are not
vested during the period and any distributions with respect to such
amounts must be made under the relevant rules for nonvested benefits
described in either A-8 of Sec. 1.401(a)(9)-5 or A-6 of
Sec. 1.401(a)(9)-6T, as applicable.
Q-8. Will a plan fail to satisfy section 401(a)(9) where an
individual's distribution from the plan is less than the amount
otherwise required to satisfy section 401(a)(9) because distributions
were being paid under an annuity contract issued by a life insurance
company in state insurer delinquency proceedings and have been reduced
or suspended by reasons of such state proceedings?
A-8. A plan will not fail to satisfy section 401(a)(9) merely
because an individual's distribution from the plan is less than the
amount otherwise required to satisfy section 401(a)(9) because
distributions were being paid under an annuity contract issued by a
life insurance company in state insurer delinquency proceedings and
have been reduced or suspended by reasons of such state proceedings. To
the extent that a distribution otherwise required under section
401(a)(9) is not made during the state insurer delinquency proceedings,
this amount and any additional amount accrued during this period will
be treated as though such amounts are not vested during the period and
any distributions with respect to such amounts must be made under the
relevant rules for nonvested benefits described in either A-8 of
Sec. 1.401(a)(9)-5 or A-6 of Sec. 1.401(a)(9)-6T, as applicable.
Q-9. Will a plan fail to qualify as a pension plan within the
meaning of section 401(a) solely because the plan permits distributions
to commence to an employee on or after April 1 of the calendar year
following the calendar year in which the employee attains age 70\1/2\
even though the employee has not retired or attained the normal
retirement age under the plan as of the date on which such
distributions commence?
A-9. No, a plan will not fail to qualify as a pension plan within
the meaning of section 401(a) solely because the plan permits
distributions to commence to an employee on or after April 1 of the
calendar year following the calendar year in which the employee attains
age 70\1/2\ even though the employee has not retired or attained the
normal retirement age under the plan as of the date on
[[Page 19011]]
which such distributions commence. This rule applies without regard to
whether the employee is a 5-percent owner with respect to the plan year
ending in the calendar year in which distributions commence.
Q-10. Is the distribution of an annuity contract a distribution for
purposes of section 401(a)(9)?
A-10. No, the distribution of an annuity contract is not a
distribution for purposes of section 401(a)(9).
Q-11. Will a payment by a plan after the death of an employee fail
to be treated as a distribution for purposes of section 401(a)(9)
solely because it is made to an estate or a trust?
A-11. A payment by a plan after the death of an employee will not
fail to be treated as a distribution for purposes of section 401(a)(9)
solely because it is made to an estate or a trust. As a result, the
estate or trust which receives a payment from a plan after the death of
an employee need not distribute the amount of such payment to the
beneficiaries of the estate or trust in accordance with section
401(a)(9)(B). Pursuant to A-3 of Sec. 1.401(a)(9)-4, an estate may not
be a designated beneficiary. Thus, pursuant to A-4 of Sec. 1.401(a)(9)-
3, distribution to the estate must satisfy the 5-year rule in section
401(a)(9)(B)(iii) if the distribution to the employee had not begun (as
defined in A-6 of Sec. 1.401(a)(9)-2) as of the employee's date of
death. However, see A-5 and A-6 of Sec. 1.401(a)(9)-4 for provisions
under which beneficiaries of a trust with respect to the trust's
interest in an employee's benefit are treated as having been designated
as beneficiaries of the employee under the plan.
Q-12. Will a plan fail to satisfy section 411(d)(6) if the plan is
amended to eliminate the availability of an optional form of benefit to
the extent that the optional form does not satisfy section 401(a)(9)?
A-12. No, pursuant to section 411(d)(6)(B), a plan will not fail to
satisfy section 411(d)(6) merely because the plan is amended to
eliminate the availability of an optional form of benefit to the extent
that the optional form does not satisfy section 401(a)(9). (See also A-
3 of Sec. 1.401(a)(9)-1, which requires a plan to provide that,
notwithstanding any other plan provision, it will not distribute
benefits under any option that does not satisfy section 401(a)(9).)
Q-13. Is a plan disqualified merely because it pays benefits under
a designation made before January 1, 1984, in accordance with section
242(b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA)?
A-13. No, even though the distribution requirements added by TEFRA
were retroactively repealed by the Tax Reform Act of 1984 (TRA of
1984), the transitional election rule in section 242(b) of TEFRA was
preserved. Satisfaction of the spousal consent requirements of section
417(a) and (e) (added by the Retirement Equity Act of 1984) will not be
considered a revocation of the pre-1984 designation. However, sections
401(a)(11) and 417 must be satisfied with respect to any distribution
subject to those sections. The election provided in section 242(b) of
TEFRA is hereafter referred to as a section 242(b)(2) election.
Q-14. If an amount is transferred from one plan (transferor plan)
to another plan (transferee plan), may the transferee plan distribute
the amount transferred in accordance with a section 242(b)(2) election
made under either the transferor plan or under the transferee plan?
A-14. (a) If an amount is transferred from one plan (transferor
plan) to another plan (transferee plan), the amount transferred may be
distributed in accordance with a section 242(b)(2) election made under
the transferor plan if the employee did not elect to have the amount
transferred and if the amount transferred is separately accounted for
by the transferee plan. However, only the benefit attributable to the
amount transferred, plus earnings thereon, may be distributed in
accordance with the section 242(b)(2) election made under the
transferor plan. If the employee elected to have the amount
transferred, the transfer will be treated as a distribution and
rollover of the amount transferred for purposes of this section.
(b) In the case in which an amount is transferred from one plan to
another plan, the amount transferred may not be distributed in
accordance with a section 242(b)(2) election made under the transferee
plan. If a section 242(b)(2) election was made under the transferee
plan, the amount transferred must be separately accounted for. If the
amount transferred is not separately accounted for under the transferee
plan, the section 242(b)(2) election under the transferee plan is
revoked and section 401(a)(9) will apply to subsequent distributions by
the transferee plan.
(c) A merger, spinoff, or consolidation, as defined in
Sec. 1.414(l)-1(b), will be treated as a transfer for purposes of the
section 242(b)(2) election.
Q-15. If an amount is distributed by one plan (distributing plan)
and rolled over into another plan (receiving plan), may the receiving
plan distribute the amount rolled over in accordance with a section
242(b)(2) election made under either the distributing plan or the
receiving plan?
A-15. No, if an amount is distributed by one plan (distributing
plan) and rolled over into another plan (receiving plan), the receiving
plan must distribute the amount rolled over in accordance with section
401(a)(9) whether or not the employee made a section 242(b)(2) election
under the distributing plan. Further, if the amount rolled over was not
distributed in accordance with the election, the election under the
distributing plan is revoked and section 401(a)(9) will apply to all
subsequent distributions by the distributing plan. Finally, if the
employee made a section 242(b)(2) election under the receiving plan and
such election is still in effect, the amount rolled over must be
separately accounted for under the receiving plan and distributed in
accordance with section 401(a)(9). If amounts rolled over are not
separately accounted for, any section 242(b)(2) election under the
receiving plan is revoked and section 401(a)(9) will apply to
subsequent distributions by the receiving plan.
Q-16. May a section 242(b)(2) election be revoked after the date by
which distributions are required to commence in order to satisfy
section 401(a)(9) and this section of the regulations?
A-16. Yes, a section 242(b)(2) election may be revoked after the
date by which distributions are required to commence in order to
satisfy section 401(a)(9) and this section of the regulations. However,
if the section 242(b)(2) election is revoked after the date by which
distributions are required to commence in order to satisfy section
401(a)(9) and this section of the regulations and the total amount of
the distributions which would have been required to be made prior to
the date of the revocation in order to satisfy section 401(a)(9), but
for the section 242(b)(2) election, have not been made, the plan must
distribute by the end of the calendar year following the calendar year
in which the revocation occurs the total amount not yet distributed
which was required to have been distributed to satisfy the requirements
of section 401(a)(9) and continue distributions in accordance with such
requirements.
Sec. 1.401(a)(9)-9 Life expectancy and distribution period tables.
Q-1. What is the life expectancy for an individual for purposes of
determining required minimum distributions under section 401(a)(9)?
A-1 The following table, referred to as the Single Life Table, is
used for
[[Page 19012]]
determining the life expectancy of an individual:
Single Life Table
------------------------------------------------------------------------
Life
Age expectancy
------------------------------------------------------------------------
0......................................................... 82.4
1......................................................... 81.6
2......................................................... 80.6
3......................................................... 79.7
4......................................................... 78.7
5......................................................... 77.7
6......................................................... 76.7
7......................................................... 75.8
8......................................................... 74.8
9......................................................... 73.8
10......................................................... 72.8
11......................................................... 71.8
12......................................................... 70.8
13......................................................... 69.9
14......................................................... 68.9
15......................................................... 67.9
16......................................................... 66.9
17......................................................... 66.0
18......................................................... 65.0
19......................................................... 64.0
20......................................................... 63.0
21......................................................... 62.1
22......................................................... 61.1
23......................................................... 60.1
24......................................................... 59.1
25......................................................... 58.2
26......................................................... 57.2
27......................................................... 56.2
28......................................................... 55.3
29......................................................... 54.3
30......................................................... 53.3
31......................................................... 52.4
32......................................................... 51.4
33......................................................... 50.4
34......................................................... 49.4
35......................................................... 48.5
36......................................................... 47.5
37......................................................... 46.5
38......................................................... 45.6
39......................................................... 44.6
40......................................................... 43.6
41......................................................... 42.7
42......................................................... 41.7
43......................................................... 40.7
44......................................................... 39.8
45......................................................... 38.8
46......................................................... 37.9
47......................................................... 37.0
48......................................................... 36.0
49......................................................... 35.1
50......................................................... 34.2
51......................................................... 33.3
52......................................................... 32.3
53......................................................... 31.4
54......................................................... 30.5
55......................................................... 29.6
56......................................................... 28.7
57......................................................... 27.9
58......................................................... 27.0
59......................................................... 26.1
60......................................................... 25.2
61......................................................... 24.4
62......................................................... 23.5
63......................................................... 22.7
64......................................................... 21.8
65......................................................... 21.0
66......................................................... 20.2
67......................................................... 19.4
68......................................................... 18.6
69......................................................... 17.8
70......................................................... 17.0
71......................................................... 16.3
72......................................................... 15.5
73......................................................... 14.8
74......................................................... 14.1
75......................................................... 13.4
76......................................................... 12.7
77......................................................... 12.1
78......................................................... 11.4
79......................................................... 10.8
80......................................................... 10.2
81......................................................... 9.7
82......................................................... 9.1
83......................................................... 8.6
84......................................................... 8.1
85......................................................... 7.6
86......................................................... 7.1
87......................................................... 6.7
88......................................................... 6.3
89......................................................... 5.9
90......................................................... 5.5
91......................................................... 5.2
92......................................................... 4.9
93......................................................... 4.6
94......................................................... 4.3
95......................................................... 4.1
96......................................................... 3.8
97......................................................... 3.6
98......................................................... 3.4
99......................................................... 3.1
100........................................................ 2.9
101........................................................ 2.7
102........................................................ 2.5
103........................................................ 2.3
104........................................................ 2.1
105........................................................ 1.9
106........................................................ 1.7
107........................................................ 1.5
108........................................................ 1.4
109........................................................ 1.2
110........................................................ 1.1
111+....................................................... 1.0
------------------------------------------------------------------------
Q-2. What is the applicable distribution period for an individual
account for purposes of determining required minimum distributions
during an employee's lifetime under section 401(a)(9)?
A-2. Table for determining distribution period. The following
table, referred to as the Uniform Lifetime Table, is used for
determining the distribution period for lifetime distributions to an
employee in situations in which the employee's spouse is either not the
sole designated beneficiary or is the sole designated beneficiary but
is not more than 10 years younger than the employee.
Uniform Lifetime Table
------------------------------------------------------------------------
Distribution
Age of employee period
------------------------------------------------------------------------
70...................................................... 27.4
71...................................................... 26.5
72...................................................... 25.6
73...................................................... 24.7
74...................................................... 23.8
75...................................................... 22.9
76...................................................... 22.0
77...................................................... 21.2
78...................................................... 20.3
79...................................................... 19.5
80...................................................... 18.7
81...................................................... 17.9
82...................................................... 17.1
83...................................................... 16.3
84...................................................... 15.5
85...................................................... 14.8
86...................................................... 14.1
87...................................................... 13.4
88...................................................... 12.7
89...................................................... 12.0
90...................................................... 11.4
91...................................................... 10.8
92...................................................... 10.2
93...................................................... 9.6
94...................................................... 9.1
95...................................................... 8.6
96...................................................... 8.1
97...................................................... 7.6
98...................................................... 7.1
99...................................................... 6.7
100..................................................... 6.3
101..................................................... 5.9
102..................................................... 5.5
103..................................................... 5.2
104..................................................... 4.9
105..................................................... 4.5
106..................................................... 4.2
107..................................................... 3.9
108..................................................... 3.7
109..................................................... 3.4
110..................................................... 3.1
111..................................................... 2.9
112..................................................... 2.6
113..................................................... 2.4
114..................................................... 2.1
115+.................................................... 1.9
------------------------------------------------------------------------
Q-3. What is the joint life and last survivor expectancy of an
individual and beneficiary for purposes of determining required minimum
distributions under section 401(a)(9)?
A-3. The following table, referred to as the Joint and Last
Survivor Table, is used for determining the joint and last survivor
life expectancy of two individuals:
[[Page 19013]]
Joint and Last Survivor Table
--------------------------------------------------------------------------------------------------------------------------------------------------------
Ages 0 1 2 3 4 5 6 7 8 9
--------------------------------------------------------------------------------------------------------------------------------------------------------
0......................................... 90.0 89.5 89.0 88.6 88.2 87.8 87.4 87.1 86.8 86.5
1......................................... 89.5 89.0 88.5 88.1 87.6 87.2 86.8 86.5 86.1 85.8
2......................................... 89.0 88.5 88.0 87.5 87.1 86.6 86.2 85.8 85.5 85.1
3......................................... 88.6 88.1 87.5 87.0 86.5 86.1 85.6 85.2 84.8 84.5
4......................................... 88.2 87.6 87.1 86.5 86.0 85.5 85.1 84.6 84.2 83.8
5......................................... 87.8 87.2 86.6 86.1 85.5 85.0 84.5 84.1 83.6 83.2
6......................................... 87.4 86.8 86.2 85.6 85.1 84.5 84.0 83.5 83.1 82.6
7......................................... 87.1 86.5 85.8 85.2 84.6 84.1 83.5 83.0 82.5 82.1
8......................................... 86.8 86.1 85.5 84.8 84.2 83.6 83.1 82.5 82.0 81.6
9......................................... 86.5 85.8 85.1 84.5 83.8 83.2 82.6 82.1 81.6 81.0
10........................................ 86.2 85.5 84.8 84.1 83.5 82.8 82.2 81.6 81.1 80.6
11........................................ 85.9 85.2 84.5 83.8 83.1 82.5 81.8 81.2 80.7 80.1
12........................................ 85.7 84.9 84.2 83.5 82.8 82.1 81.5 80.8 80.2 79.7
13........................................ 85.4 84.7 84.0 83.2 82.5 81.8 81.1 80.5 79.9 79.2
14........................................ 85.2 84.5 83.7 83.0 82.2 81.5 80.8 80.1 79.5 78.9
15........................................ 85.0 84.3 83.5 82.7 82.0 81.2 80.5 79.8 79.1 78.5
16........................................ 84.9 84.1 83.3 82.5 81.7 81.0 80.2 79.5 78.8 78.1
17........................................ 84.7 83.9 83.1 82.3 81.5 80.7 80.0 79.2 78.5 77.8
18........................................ 84.5 83.7 82.9 82.1 81.3 80.5 79.7 79.0 78.2 77.5
19........................................ 84.4 83.6 82.7 81.9 81.1 80.3 79.5 78.7 78.0 77.3
20........................................ 84.3 83.4 82.6 81.8 80.9 80.1 79.3 78.5 77.7 77.0
21........................................ 84.1 83.3 82.4 81.6 80.8 79.9 79.1 78.3 77.5 76.8
22........................................ 84.0 83.2 82.3 81.5 80.6 79.8 78.9 78.1 77.3 76.5
23........................................ 83.9 83.1 82.2 81.3 80.5 79.6 78.8 77.9 77.1 76.3
24........................................ 83.8 83.0 82.1 81.2 80.3 79.5 78.6 77.8 76.9 76.1
25........................................ 83.7 82.9 82.0 81.1 80.2 79.3 78.5 77.6 76.8 75.9
26........................................ 83.6 82.8 81.9 81.0 80.1 79.2 78.3 77.5 76.6 75.8
27........................................ 83.6 82.7 81.8 80.9 80.0 79.1 78.2 77.4 76.5 75.6
28........................................ 83.5 82.6 81.7 80.8 79.9 79.0 78.1 77.2 76.4 75.5
29........................................ 83.4 82.6 81.6 80.7 79.8 78.9 78.0 77.1 76.2 75.4
30........................................ 83.4 82.5 81.6 80.7 79.7 78.8 77.9 77.0 76.1 75.2
31........................................ 83.3 82.4 81.5 80.6 79.7 78.8 77.8 76.9 76.0 75.1
32........................................ 83.3 82.4 81.5 80.5 79.6 78.7 77.8 76.8 75.9 75.0
33........................................ 83.2 82.3 81.4 80.5 79.5 78.6 77.7 76.8 75.9 74.9
34........................................ 83.2 82.3 81.3 80.4 79.5 78.5 77.6 76.7 75.8 74.9
35........................................ 83.1 82.2 81.3 80.4 79.4 78.5 77.6 76.6 75.7 74.8
36........................................ 83.1 82.2 81.3 80.3 79.4 78.4 77.5 76.6 75.6 74.7
37........................................ 83.0 82.2 81.2 80.3 79.3 78.4 77.4 76.5 75.6 74.6
38........................................ 83.0 82.1 81.2 80.2 79.3 78.3 77.4 76.4 75.5 74.6
39........................................ 83.0 82.1 81.1 80.2 79.2 78.3 77.3 76.4 75.5 74.5
40........................................ 82.9 82.1 81.1 80.2 79.2 78.3 77.3 76.4 75.4 74.5
41........................................ 82.9 82.0 81.1 80.1 79.2 78.2 77.3 76.3 75.4 74.4
42........................................ 82.9 82.0 81.1 80.1 79.1 78.2 77.2 76.3 75.3 74.4
43........................................ 82.9 82.0 81.0 80.1 79.1 78.2 77.2 76.2 75.3 74.3
44........................................ 82.8 81.9 81.0 80.0 79.1 78.1 77.2 76.2 75.2 74.3
45........................................ 82.8 81.9 81.0 80.0 79.1 78.1 77.1 76.2 75.2 74.3
46........................................ 82.8 81.9 81.0 80.0 79.0 78.1 77.1 76.1 75.2 74.2
47........................................ 82.8 81.9 80.9 80.0 79.0 78.0 77.1 76.1 75.2 74.2
48........................................ 82.8 81.9 80.9 80.0 79.0 78.0 77.1 76.1 75.1 74.2
49........................................ 82.7 81.8 80.9 79.9 79.0 78.0 77.0 76.1 75.1 74.1
50........................................ 82.7 81.8 80.9 79.9 79.0 78.0 77.0 76.0 75.1 74.1
51........................................ 82.7 81.8 80.9 79.9 78.9 78.0 77.0 76.0 75.1 74.1
52........................................ 82.7 81.8 80.9 79.9 78.9 78.0 77.0 76.0 75.0 74.1
53........................................ 82.7 81.8 80.8 79.9 78.9 77.9 77.0 76.0 75.0 74.0
54........................................ 82.7 81.8 80.8 79.9 78.9 77.9 76.9 76.0 75.0 74.0
55........................................ 82.6 81.8 80.8 79.8 78.9 77.9 76.9 76.0 75.0 74.0
56........................................ 82.6 81.7 80.8 79.8 78.9 77.9 76.9 75.9 75.0 74.0
57........................................ 82.6 81.7 80.8 79.8 78.9 77.9 76.9 75.9 75.0 74.0
58........................................ 82.6 81.7 80.8 79.8 78.8 77.9 76.9 75.9 74.9 74.0
59........................................ 82.6 81.7 80.8 79.8 78.8 77.9 76.9 75.9 74.9 74.0
60........................................ 82.6 81.7 80.8 79.8 78.8 77.8 76.9 75.9 74.9 73.9
61........................................ 82.6 81.7 80.8 79.8 78.8 77.8 76.9 75.9 74.9 73.9
62........................................ 82.6 81.7 80.7 79.8 78.8 77.8 76.9 75.9 74.9 73.9
63........................................ 82.6 81.7 80.7 79.8 78.8 77.8 76.8 75.9 74.9 73.9
64........................................ 82.5 81.7 80.7 79.8 78.8 77.8 76.8 75.9 74.9 73.9
65........................................ 82.5 81.7 80.7 79.8 78.8 77.8 76.8 75.8 74.9 73.9
66........................................ 82.5 81.7 80.7 79.7 78.8 77.8 76.8 75.8 74.9 73.9
67........................................ 82.5 81.7 80.7 79.7 78.8 77.8 76.8 75.8 74.9 73.9
68........................................ 82.5 81.6 80.7 79.7 78.8 77.8 76.8 75.8 74.8 73.9
69........................................ 82.5 81.6 80.7 79.7 78.8 77.8 76.8 75.8 74.8 73.9
70........................................ 82.5 81.6 80.7 79.7 78.8 77.8 76.8 75.8 74.8 73.9
71........................................ 82.5 81.6 80.7 79.7 78.7 77.8 76.8 75.8 74.8 73.8
[[Page 19014]]
72........................................ 82.5 81.6 80.7 79.7 78.7 77.8 76.8 75.8 74.8 73.8
73........................................ 82.5 81.6 80.7 79.7 78.7 77.8 76.8 75.8 74.8 73.8
74........................................ 82.5 81.6 80.7 79.7 78.7 77.8 76.8 75.8 74.8 73.8
75........................................ 82.5 81.6 80.7 79.7 78.7 77.8 76.8 75.8 74.8 73.8
76........................................ 82.5 81.6 80.7 79.7 78.7 77.8 76.8 75.8 74.8 73.8
77........................................ 82.5 81.6 80.7 79.7 78.7 77.7 76.8 75.8 74.8 73.8
78........................................ 82.5 81.6 80.7 79.7 78.7 77.7 76.8 75.8 74.8 73.8
79........................................ 82.5 81.6 80.7 79.7 78.7 77.7 76.8 75.8 74.8 73.8
80........................................ 82.5 81.6 80.7 79.7 78.7 77.7 76.8 75.8 74.8 73.8
81........................................ 82.4 81.6 80.7 79.7 78.7 77.7 76.8 75.8 74.8 73.8
82........................................ 82.4 81.6 80.7 79.7 78.7 77.7 76.8 75.8 74.8 73.8
83........................................ 82.4 81.6 80.7 79.7 78.7 77.7 76.8 75.8 74.8 73.8
84........................................ 82.4 81.6 80.7 79.7 78.7 77.7 76.8 75.8 74.8 73.8
85........................................ 82.4 81.6 80.6 79.7 78.7 77.7 76.8 75.8 74.8 73.8
86........................................ 82.4 81.6 80.6 79.7 78.7 77.7 76.7 75.8 74.8 73.8
87........................................ 82.4 81.6 80.6 79.7 78.7 77.7 76.7 75.8 74.8 73.8
88........................................ 82.4 81.6 80.6 79.7 78.7 77.7 76.7 75.8 74.8 73.8
89........................................ 82.4 81.6 80.6 79.7 78.7 77.7 76.7 75.8 74.8 73.8
90........................................ 82.4 81.6 80.6 79.7 78.7 77.7 76.7 75.8 74.8 73.8
91........................................ 82.4 81.6 80.6 79.7 78.7 77.7 76.7 75.8 74.8 73.8
92........................................ 82.4 81.6 80.6 79.7 78.7 77.7 76.7 75.8 74.8 73.8
93........................................ 82.4 81.6 80.6 79.7 78.7 77.7 76.7 75.8 74.8 73.8
94........................................ 82.4 81.6 80.6 79.7 78.7 77.7 76.7 75.8 74.8 73.8
95........................................ 82.4 81.6 80.6 79.7 78.7 77.7 76.7 75.8 74.8 73.8
96........................................ 82.4 81.6 80.6 79.7 78.7 77.7 76.7 75.8 74.8 73.8
97........................................ 82.4 81.6 80.6 79.7 78.7 77.7 76.7 75.8 74.8 73.8
98........................................ 82.4 81.6 80.6 79.7 78.7 77.7 76.7 75.8 74.8 73.8
99........................................ 82.4 81.6 80.6 79.7 78.7 77.7 76.7 75.8 74.8 73.8
100....................................... 82.4 81.6 80.6 79.7 78.7 77.7 76.7 75.8 74.8 73.8
101....................................... 82.4 81.6 80.6 79.7 78.7 77.7 76.7 75.8 74.8 73.8
102....................................... 82.4 81.6 80.6 79.7 78.7 77.7 76.7 75.8 74.8 73.8
103....................................... 82.4 81.6 80.6 79.7 78.7 77.7 76.7 75.8 74.8 73.8
104....................................... 82.4 81.6 80.6 79.7 78.7 77.7 76.7 75.8 74.8 73.8
105....................................... 82.4 81.6 80.6 79.7 78.7 77.7 76.7 75.8 74.8 73.8
106....................................... 82.4 81.6 80.6 79.7 78.7 77.7 76.7 75.8 74.8 73.8
107....................................... 82.4 81.6 80.6 79.7 78.7 77.7 76.7 75.8 74.8 73.8
108....................................... 82.4 81.6 80.6 79.7 78.7 77.7 76.7 75.8 74.8 73.8
109....................................... 82.4 81.6 80.6 79.7 78.7 77.7 76.7 75.8 74.8 73.8
110....................................... 82.4 81.6 80.6 79.7 78.7 77.7 76.7 75.8 74.8 73.8
111....................................... 82.4 81.6 80.6 79.7 78.7 77.7 76.7 75.8 74.8 73.8
112....................................... 82.4 81.6 80.6 79.7 78.7 77.7 76.7 75.8 74.8 73.8
113....................................... 82.4 81.6 80.6 79.7 78.7 77.7 76.7 75.8 74.8 73.8
114....................................... 82.4 81.6 80.6 79.7 78.7 77.7 76.7 75.8 74.8 73.8
115+...................................... 82.4 81.6 80.6 79.7 78.7 77.7 76.7 75.8 74.8 73.8
--------------------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------------------
Ages 10 11 12 13 14 15 16 17 18 19
--------------------------------------------------------------------------------------------------------------------------------------------------------
10........................................ 80.0 79.6 79.1 78.7 78.2 77.9 77.5 77.2 76.8 76.5
11........................................ 79.6 79.0 78.6 78.1 77.7 77.3 76.9 76.5 76.2 75.8
12........................................ 79.1 78.6 78.1 77.6 77.1 76.7 76.3 75.9 75.5 75.2
13........................................ 78.7 78.1 77.6 77.1 76.6 76.1 75.7 75.3 74.9 74.5
14........................................ 78.2 77.7 77.1 76.6 76.1 75.6 75.1 74.7 74.3 73.9
15........................................ 77.9 77.3 76.7 76.1 75.6 75.1 74.6 74.1 73.7 73.3
16........................................ 77.5 76.9 76.3 75.7 75.1 74.6 74.1 73.6 73.1 72.7
17........................................ 77.2 76.5 75.9 75.3 74.7 74.1 73.6 73.1 72.6 72.1
18........................................ 76.8 76.2 75.5 74.9 74.3 73.7 73.1 72.6 72.1 71.6
19........................................ 76.5 75.8 75.2 74.5 73.9 73.3 72.7 72.1 71.6 71.1
20........................................ 76.3 75.5 74.8 74.2 73.5 72.9 72.3 71.7 71.1 70.6
21........................................ 76.0 75.3 74.5 73.8 73.2 72.5 71.9 71.3 70.7 70.1
22........................................ 75.8 75.0 74.3 73.5 72.9 72.2 71.5 70.9 70.3 69.7
23........................................ 75.5 74.8 74.0 73.3 72.6 71.9 71.2 70.5 69.9 69.3
24........................................ 75.3 74.5 73.8 73.0 72.3 71.6 70.9 70.2 69.5 68.9
25........................................ 75.1 74.3 73.5 72.8 72.0 71.3 70.6 69.9 69.2 68.5
26........................................ 75.0 74.1 73.3 72.5 71.8 71.0 70.3 69.6 68.9 68.2
27........................................ 74.8 74.0 73.1 72.3 71.6 70.8 70.0 69.3 68.6 67.9
28........................................ 74.6 73.8 73.0 72.2 71.3 70.6 69.8 69.0 68.3 67.6
29........................................ 74.5 73.6 72.8 72.0 71.2 70.4 69.6 68.8 68.0 67.3
30........................................ 74.4 73.5 72.7 71.8 71.0 70.2 69.4 68.6 67.8 67.1
31........................................ 74.3 73.4 72.5 71.7 70.8 70.0 69.2 68.4 67.6 66.8
32........................................ 74.1 73.3 72.4 71.5 70.7 69.8 69.0 68.2 67.4 66.6
33........................................ 74.0 73.2 72.3 71.4 70.5 69.7 68.8 68.0 67.2 66.4
[[Page 19015]]
34........................................ 73.9 73.0 72.2 71.3 70.4 69.5 68.7 67.8 67.0 66.2
35........................................ 73.9 73.0 72.1 71.2 70.3 69.4 68.5 67.7 66.8 66.0
36........................................ 73.8 72.9 72.0 71.1 70.2 69.3 68.4 67.6 66.7 65.9
37........................................ 73.7 72.8 71.9 71.0 70.1 69.2 68.3 67.4 66.6 65.7
38........................................ 73.6 72.7 71.8 70.9 70.0 69.1 68.2 67.3 66.4 65.6
39........................................ 73.6 72.7 71.7 70.8 69.9 69.0 68.1 67.2 66.3 65.4
40........................................ 73.5 72.6 71.7 70.7 69.8 68.9 68.0 67.1 66.2 65.3
41........................................ 73.5 72.5 71.6 70.7 69.7 68.8 67.9 67.0 66.1 65.2
42........................................ 73.4 72.5 71.5 70.6 69.7 68.8 67.8 66.9 66.0 65.1
43........................................ 73.4 72.4 71.5 70.6 69.6 68.7 67.8 66.8 65.9 65.0
44........................................ 73.3 72.4 71.4 70.5 69.6 68.6 67.7 66.8 65.9 64.9
45........................................ 73.3 72.3 71.4 70.5 69.5 68.6 67.6 66.7 65.8 64.9
46........................................ 73.3 72.3 71.4 70.4 69.5 68.5 67.6 66.6 65.7 64.8
47........................................ 73.2 72.3 71.3 70.4 69.4 68.5 67.5 66.6 65.7 64.7
48........................................ 73.2 72.2 71.3 70.3 69.4 68.4 67.5 66.5 65.6 64.7
49........................................ 73.2 72.2 71.2 70.3 69.3 68.4 67.4 66.5 65.6 64.6
50........................................ 73.1 72.2 71.2 70.3 69.3 68.4 67.4 66.5 65.5 64.6
51........................................ 73.1 72.2 71.2 70.2 69.3 68.3 67.4 66.4 65.5 64.5
52........................................ 73.1 72.1 71.2 70.2 69.2 68.3 67.3 66.4 65.4 64.5
53........................................ 73.1 72.1 71.1 70.2 69.2 68.3 67.3 66.3 65.4 64.4
54........................................ 73.1 72.1 71.1 70.2 69.2 68.2 67.3 66.3 65.4 64.4
55........................................ 73.0 72.1 71.1 70.1 69.2 68.2 67.2 66.3 65.3 64.4
56........................................ 73.0 72.1 71.1 70.1 69.1 68.2 67.2 66.3 65.3 64.3
57........................................ 73.0 72.0 71.1 70.1 69.1 68.2 67.2 66.2 65.3 64.3
58........................................ 73.0 72.0 71.0 70.1 69.1 68.1 67.2 66.2 65.2 64.3
59........................................ 73.0 72.0 71.0 70.1 69.1 68.1 67.2 66.2 65.2 64.3
60........................................ 73.0 72.0 71.0 70.0 69.1 68.1 67.1 66.2 65.2 64.2
61........................................ 73.0 72.0 71.0 70.0 69.1 68.1 67.1 66.2 65.2 64.2
62........................................ 72.9 72.0 71.0 70.0 69.0 68.1 67.1 66.1 65.2 64.2
63........................................ 72.9 72.0 71.0 70.0 69.0 68.1 67.1 66.1 65.2 64.2
64........................................ 72.9 71.9 71.0 70.0 69.0 68.0 67.1 66.1 65.1 64.2
65........................................ 72.9 71.9 71.0 70.0 69.0 68.0 67.1 66.1 65.1 64.2
66........................................ 72.9 71.9 70.9 70.0 69.0 68.0 67.1 66.1 65.1 64.1
67........................................ 72.9 71.9 70.9 70.0 69.0 68.0 67.0 66.1 65.1 64.1
68........................................ 72.9 71.9 70.9 70.0 69.0 68.0 67.0 66.1 65.1 64.1
69........................................ 72.9 71.9 70.9 69.9 69.0 68.0 67.0 66.1 65.1 64.1
70........................................ 72.9 71.9 70.9 69.9 69.0 68.0 67.0 66.0 65.1 64.1
71........................................ 72.9 71.9 70.9 69.9 69.0 68.0 67.0 66.0 65.1 64.1
72........................................ 72.9 71.9 70.9 69.9 69.0 68.0 67.0 66.0 65.1 64.1
73........................................ 72.9 71.9 70.9 69.9 68.9 68.0 67.0 66.0 65.0 64.1
74........................................ 72.9 71.9 70.9 69.9 68.9 68.0 67.0 66.0 65.0 64.1
75........................................ 72.8 71.9 70.9 69.9 68.9 68.0 67.0 66.0 65.0 64.1
76........................................ 72.8 71.9 70.9 69.9 68.9 68.0 67.0 66.0 65.0 64.1
77........................................ 72.8 71.9 70.9 69.9 68.9 68.0 67.0 66.0 65.0 64.1
78........................................ 72.8 71.9 70.9 69.9 68.9 67.9 67.0 66.0 65.0 64.0
79........................................ 72.8 71.9 70.9 69.9 68.9 67.9 67.0 66.0 65.0 64.0
80........................................ 72.8 71.9 70.9 69.9 68.9 67.9 67.0 66.0 65.0 64.0
81........................................ 72.8 71.8 70.9 69.9 68.9 67.9 67.0 66.0 65.0 64.0
82........................................ 72.8 71.8 70.9 69.9 68.9 67.9 67.0 66.0 65.0 64.0
83........................................ 72.8 71.8 70.9 69.9 68.9 67.9 67.0 66.0 65.0 64.0
84........................................ 72.8 71.8 70.9 69.9 68.9 67.9 67.0 66.0 65.0 64.0
85........................................ 72.8 71.8 70.9 69.9 68.9 67.9 66.9 66.0 65.0 64.0
86........................................ 72.8 71.8 70.9 69.9 68.9 67.9 66.9 66.0 65.0 64.0
87........................................ 72.8 71.8 70.9 69.9 68.9 67.9 66.9 66.0 65.0 64.0
88........................................ 72.8 71.8 70.9 69.9 68.9 67.9 66.9 66.0 65.0 64.0
89........................................ 72.8 71.8 70.9 69.9 68.9 67.9 66.9 66.0 65.0 64.0
90........................................ 72.8 71.8 70.9 69.9 68.9 67.9 66.9 66.0 65.0 64.0
91........................................ 72.8 71.8 70.9 69.9 68.9 67.9 66.9 66.0 65.0 64.0
92........................................ 72.8 71.8 70.9 69.9 68.9 67.9 66.9 66.0 65.0 64.0
93........................................ 72.8 71.8 70.9 69.9 68.9 67.9 66.9 66.0 65.0 64.0
94........................................ 72.8 71.8 70.8 69.9 68.9 67.9 66.9 66.0 65.0 64.0
95........................................ 72.8 71.8 70.8 69.9 68.9 67.9 66.9 66.0 65.0 64.0
96........................................ 72.8 71.8 70.8 69.9 68.9 67.9 66.9 66.0 65.0 64.0
97........................................ 72.8 71.8 70.8 69.9 68.9 67.9 66.9 66.0 65.0 64.0
98........................................ 72.8 71.8 70.8 69.9 68.9 67.9 66.9 66.0 65.0 64.0
99........................................ 72.8 71.8 70.8 69.9 68.9 67.9 66.9 66.0 65.0 64.0
100....................................... 72.8 71.8 70.8 69.9 68.9 67.9 66.9 66.0 65.0 64.0
101....................................... 72.8 71.8 70.8 69.9 68.9 67.9 66.9 66.0 65.0 64.0
102....................................... 72.8 71.8 70.8 69.9 68.9 67.9 66.9 66.0 65.0 64.0
103....................................... 72.8 71.8 70.8 69.9 68.9 67.9 66.9 66.0 65.0 64.0
104....................................... 72.8 71.8 70.8 69.9 68.9 67.9 66.9 66.0 65.0 64.0
105....................................... 72.8 71.8 70.8 69.9 68.9 67.9 66.9 66.0 65.0 64.0
106....................................... 72.8 71.8 70.8 69.9 68.9 67.9 66.9 66.0 65.0 64.0
107....................................... 72.8 71.8 70.8 69.9 68.9 67.9 66.9 66.0 65.0 64.0
[[Page 19016]]
108....................................... 72.8 71.8 70.8 69.9 68.9 67.9 66.9 66.0 65.0 64.0
109....................................... 72.8 71.8 70.8 69.9 68.9 67.9 66.9 66.0 65.0 64.0
110....................................... 72.8 71.8 70.8 69.9 68.9 67.9 66.9 66.0 65.0 64.0
111....................................... 72.8 71.8 70.8 69.9 68.9 67.9 66.9 66.0 65.0 64.0
112....................................... 72.8 71.8 70.8 69.9 68.9 67.9 66.9 66.0 65.0 64.0
113....................................... 72.8 71.8 70.8 69.9 68.9 67.9 66.9 66.0 65.0 64.0
114....................................... 72.8 71.8 70.8 69.9 68.9 67.9 66.9 66.0 65.0 64.0
115+...................................... 72.8 71.8 70.8 69.9 68.9 67.9 66.9 66.0 65.0 64.0
--------------------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------------------
Ages 20 21 22 23 24 25 26 27 28 29
--------------------------------------------------------------------------------------------------------------------------------------------------------
20........................................ 70.1 69.6 69.1 68.7 68.3 67.9 67.5 67.2 66.9 66.6
21........................................ 69.6 69.1 68.6 68.2 67.7 67.3 66.9 66.6 66.2 65.9
22........................................ 69.1 68.6 68.1 67.6 67.2 66.7 66.3 65.9 65.6 65.2
23........................................ 68.7 68.2 67.9 67.1 66.6 66.2 65.7 65.3 64.9 64.6
24........................................ 68.3 67.7 67.2 66.6 66.1 65.6 65.2 64.7 64.3 63.9
25........................................ 67.9 67.3 66.7 77.2 65.6 65.1 64.6 64.2 63.7 63.3
26........................................ 67.5 66.9 66.3 65.7 65.2 64.6 64.1 63.6 63.2 62.8
27........................................ 67.2 66.6 65.9 65.3 64.7 64.2 63.6 63.1 62.7 62.2
28........................................ 66.9 66.2 65.6 64.9 64.3 63.7 63.2 62.7 62.1 61.7
29........................................ 66.6 65.9 65.2 64.6 63.9 63.3 62.8 62.2 61.7 61.2
30........................................ 66.3 65.6 64.9 64.2 63.6 62.9 62.3 61.8 61.2 60.7
31........................................ 66.1 65.3 64.6 63.9 63.2 62.6 62.0 61.4 60.8 60.2
32........................................ 65.8 65.1 64.3 63.6 62.9 62.2 61.6 61.0 60.4 59.8
33........................................ 65.6 64.8 64.1 63.3 62.6 61.9 61.3 60.6 60.0 59.4
34........................................ 65.4 64.6 63.8 63.1 62.3 61.6 60.9 60.3 59.6 59.0
35........................................ 65.2 64.4 63.6 62.8 62.1 61.4 60.6 59.9 59.3 58.6
36........................................ 65.0 64.2 63.4 62.6 61.9 61.1 60.4 59.6 69.0 58.3
37........................................ 64.9 64.0 63.2 62.4 61.6 60.9 60.1 59.4 58.7 58.0
38........................................ 64.7 63.9 63.0 62.2 61.4 60.6 59.9 59.1 58.4 57.7
39........................................ 64.6 63.7 62.9 62.1 61.2 60.4 59.6 58.9 58.1 57.4
40........................................ 64.4 63.6 62.7 61.9 61.1 60.2 59.4 58.7 57.9 57.1
41........................................ 64.3 63.5 62.6 61.7 60.9 60.1 59.3 58.5 57.7 56.9
42........................................ 64.2 63.3 62.5 61.6 60.8 59.9 59.1 58.3 57.5 56.7
43........................................ 64.1 63.2 62.4 61.5 60.6 59.8 58.9 58.1 57.3 56.5
44........................................ 64.0 63.1 62.2 61.4 60.5 59.6 58.8 57.9 57.1 56.3
45........................................ 64.0 63.0 62.2 61.3 60.4 59.5 58.6 57.8 56.9 56.1
46........................................ 63.9 63.0 62.1 61.2 60.3 59.4 58.5 57.7 56.8 56.0
47........................................ 63.8 62.9 62.0 61.1 60.2 59.3 58.4 57.5 56.7 55.8
48........................................ 63.7 62.8 61.9 61.0 60.1 59.2 58.3 57.4 56.5 55.7
49........................................ 63.7 62.8 61.8 60.9 60.0 59.1 58.2 57.3 56.4 55.6
50........................................ 63.6 62.7 61.8 60.8 59.9 59.0 58.1 57.2 56.3 55.4
51........................................ 63.6 62.6 61.7 60.8 59.9 58.9 58.0 57.1 56.2 55.3
52........................................ 63.5 62.6 61.7 60.7 59.8 58.9 58.0 57.1 56.1 55.2
53........................................ 63.5 62.5 61.6 60.7 59.7 58.8 57.9 57.0 56.1 55.2
54........................................ 63.5 62.5 61.6 60.6 59.7 58.8 57.8 56.9 56.0 55.1
55........................................ 63.4 62.5 61.5 60.6 59.6 58.7 57.8 56.8 55.9 55.0
56........................................ 63.4 62.4 61.5 60.5 59.6 58.7 57.7 56.8 55.9 54.9
57........................................ 63.4 62.4 61.5 60.5 59.6 58.6 57.7 56.7 55.8 54.9
58........................................ 63.3 62.4 61.4 60.5 59.5 58.6 57.6 56.7 55.8 54.8
59........................................ 63.3 62.3 61.4 60.4 59.5 58.5 57.6 56.7 55.7 54.8
60........................................ 63.3 62.3 61.4 60.4 59.5 58.5 57.6 56.6 55.7 54.7
61........................................ 63.3 62.3 61.3 60.4 59.4 58.5 57.5 56.6 55.6 54.7
62........................................ 63.2 62.3 61.3 60.4 59.4 58.4 57.5 56.5 55.6 54.7
63........................................ 63.2 62.3 62.3 61.3 60.3 59.4 58.4 57.5 56.5 55.6
64........................................ 63.2 62.2 61.3 60.3 59.4 58.4 57.4 56.5 55.5 54.6
65........................................ 63.2 62.2 61.3 60.3 59.3 58.4 57.4 56.5 55.5 54.6
66........................................ 63.2 62.2 61.2 60.3 59.3 58.4 57.4 56.4 55.5 54.5
67........................................ 63.2 62.2 61.2 60.3 59.3 58.3 57.4 56.4 55.5 54.5
68........................................ 63.1 62.2 61.2 60.2 59.3 58.3 57.4 56.4 55.4 54.5
69........................................ 63.1 62.2 61.2 60.2 59.3 58.3 57.3 56.4 55.4 54.5
70........................................ 63.1 62.2 61.2 60.2 59.3 58.3 57.3 56.4 55.4 54.4
71........................................ 63.1 62.1 61.2 60.2 59.2 58.3 57.3 56.4 55.4 54.4
72........................................ 63.1 62.1 61.2 60.2 59.2 58.3 57.3 56.3 55.4 54.4
73........................................ 63.1 62.1 61.2 60.2 59.2 58.3 57.3 56.3 55.4 54.4
74........................................ 63.1 62.1 61.2 60.2 59.2 58.2 57.3 56.3 55.4 54.4
75........................................ 63.1 62.1 61.1 60.2 59.2 58.2 57.3 56.3 55.3 54.4
76........................................ 63.1 62.1 61.1 60.2 59.2 58.2 57.3 56.3 55.3 54.4
77........................................ 63.1 62.1 61.1 60.2 59.2 58.2 57.3 56.3 55.3 54.4
78........................................ 63.1 62.1 61.1 60.2 59.2 58.2 57.3 56.3 55.3 54.4
79........................................ 63.1 62.1 61.1 60.2 59.2 58.2 57.2 56.3 55.3 54.3
80........................................ 63.1 62.1 61.1 60.1 59.2 58.2 57.2 56.3 55.3 54.3
81........................................ 63.1 62.1 61.1 60.1 59.2 58.2 57.2 56.3 55.3 54.3
[[Page 19017]]
82........................................ 63.1 62.1 61.1 60.1 59.2 58.2 57.2 56.3 55.3 54.3
83........................................ 63.1 62.1 61.1 60.1 59.2 58.2 57.2 56.3 55.3 54.3
84........................................ 63.0 62.1 61.1 60.1 59.2 58.2 57.2 56.3 55.3 54.3
85........................................ 63.0 62.1 61.1 60.1 59.2 58.2 57.2 56.3 55.3 54.3
86........................................ 63.0 62.1 61.1 60.1 59.2 58.2 57.2 56.2 55.3 54.3
87........................................ 63.0 62.1 61.1 60.1 59.2 58.2 57.2 56.2 55.3 54.3
88........................................ 63.0 62.1 61.1 60.1 59.2 58.2 57.2 56.2 55.3 54.3
89........................................ 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3
90........................................ 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3
91........................................ 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3
92........................................ 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3
93........................................ 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3
94........................................ 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3
95........................................ 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3
96........................................ 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3
97........................................ 60.3 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3
98........................................ 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3
99........................................ 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3
100....................................... 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3
101....................................... 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3
102....................................... 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3
103....................................... 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3
104....................................... 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3
105....................................... 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3
106....................................... 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3
107....................................... 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3
108....................................... 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3
109....................................... 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3
110....................................... 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3
111....................................... 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3
112....................................... 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3
113....................................... 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3
114....................................... 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3
115+...................................... 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3
--------------------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------------------
Ages 30 31 32 33 34 35 36 37 38 39
--------------------------------------------------------------------------------------------------------------------------------------------------------
30........................................ 60.2 59.7 59.2 58.8 58.4 58.0 57.6 57.3 57.0 56.7
31........................................ 59.7 59.2 58.7 58.2 57.8 57.4 57.0 56.6 56.3 56.0
32........................................ 59.2 58.7 58.2 57.7 57.2 56.8 56.4 56.0 55.6 55.3
33........................................ 58.8 58.2 57.7 57.2 56.7 56.2 55.8 55.4 55.0 54.7
34........................................ 58.4 57.8 57.2 56.7 56.2 55.7 55.3 54.8 54.4 54.0
35........................................ 58.0 57.4 56.8 56.2 55.7 55.2 54.7 54.3 53.8 53.4
36........................................ 57.6 57.0 56.4 55.8 55.3 54.7 54.2 53.7 53.3 52.8
37........................................ 57.3 56.6 56.0 55.4 54.8 54.3 53.7 53.2 52.7 52.3
38........................................ 57.0 56.3 55.6 55.0 54.4 53.8 53.3 52.7 52.2 51.7
39........................................ 56.7 56.0 55.3 54.7 54.0 53.4 52.8 52.3 51.7 51.2
40........................................ 56.4 55.7 55.0 54.3 53.7 53.0 52.4 51.8 51.3 50.8
41........................................ 56.1 55.4 54.7 54.0 53.3 52.7 52.0 51.4 50.9 50.3
42........................................ 55.9 55.2 54.4 53.7 53.0 52.3 51.7 51.1 50.4 49.9
43........................................ 55.7 54.9 54.2 53.4 52.7 52.0 51.3 50.7 50.1 49.5
44........................................ 55.5 54.7 53.9 53.2 52.4 51.7 51.0 50.4 49.7 49.1
45........................................ 55.3 54.5 53.7 52.9 52.2 51.5 50.7 50.0 49.4 48.7
46........................................ 55.1 54.3 53.5 52.7 52.0 51.2 50.5 49.8 49.1 48.4
47........................................ 55.0 54.1 53.3 52.5 51.7 51.0 50.2 49.5 48.8 48.1
48........................................ 54.8 54.0 53.2 52.3 51.5 50.8 50.0 49.2 48.5 47.8
49........................................ 54.7 53.8 53.0 52.2 51.4 50.6 49.8 49.0 48.2 47.5
50........................................ 54.6 53.7 52.9 52.0 51.2 50.4 49.6 48.8 48.0 47.3
51........................................ 54.5 53.6 52.7 51.9 51.0 50.2 49.4 48.6 47.8 47.0
52........................................ 54.4 53.5 52.6 51.7 50.9 50.0 49.2 48.4 47.6 46.8
53........................................ 54.3 53.4 52.5 51.6 50.8 49.9 49.1 48.2 47.4 46.6
54........................................ 54.2 53.3 52.4 51.5 50.6 49.8 48.9 48.1 47.2 46.4
55........................................ 54.1 53.2 52.3 51.4 50.5 49.7 48.8 47.9 47.1 46.3
56........................................ 54.0 53.1 52.2 51.3 50.4 49.5 48.7 47.8 47.0 46.1
57........................................ 54.0 53.0 52.1 51.2 50.3 49.4 48.6 47.7 46.8 46.0
58........................................ 53.9 53.0 52.1 51.2 50.3 49.4 48.5 47.6 46.7 45.8
59........................................ 53.8 52.9 52.0 51.1 50.2 49.3 48.4 47.5 46.6 45.7
60........................................ 53.8 52.9 51.9 51.0 50.1 49.2 48.3 47.4 46.5 45.6
61........................................ 53.8 52.8 51.9 51.0 50.0 49.1 48.2 47.3 46.4 45.5
62........................................ 53.7 52.8 51.8 50.9 50.0 49.1 48.1 47.2 46.3 45.4
63........................................ 53.7 52.7 51.8 50.9 49.9 49.0 48.1 47.2 46.3 45.3
64........................................ 53.6 52.7 51.8 50.8 49.9 48.9 48.0 47.1 46.2 45.3
65........................................ 53.6 52.7 51.7 50.8 49.8 48.9 48.0 47.0 46.1 45.2
[[Page 19018]]
66........................................ 53.6 52.6 51.7 50.7 49.8 48.9 47.9 47.0 46.1 45.1
67........................................ 53.6 52.6 51.7 50.7 49.8 48.8 47.9 46.9 46.0 45.1
68........................................ 53.5 52.6 51.6 50.7 49.7 48.8 47.8 46.9 46.0 45.0
69........................................ 53.5 52.6 51.6 50.6 49.7 48.7 47.8 46.9 45.9 45.0
70........................................ 53.5 52.5 51.6 50.6 49.7 48.7 47.8 46.8 45.9 44.9
71........................................ 53.5 52.5 51.6 50.6 49.6 48.7 47.7 46.8 45.9 44.9
72........................................ 53.5 52.5 51.5 50.6 49.6 48.7 47.7 46.8 45.8 44.9
73........................................ 53.4 52.5 51.5 50.6 49.6 48.6 47.7 46.7 45.8 44.8
74........................................ 53.4 52.5 51.5 50.5 49.6 48.6 47.7 46.7 45.8 44.8
75........................................ 53.4 52.5 51.5 50.5 49.6 48.6 47.7 46.7 45.7 44.8
76........................................ 53.4 52.4 51.5 50.5 49.6 48.6 47.6 46.7 45.7 44.8
77........................................ 53.4 52.4 51.5 50.5 49.5 48.6 47.6 46.7 45.7 44.8
78........................................ 53.4 52.4 51.5 50.5 49.5 48.6 47.6 46.6 45.7 44.7
79........................................ 53.4 52.4 51.5 50.5 49.5 48.6 47.6 46.6 45.7 44.7
80........................................ 53.4 52.4 51.4 50.5 49.5 48.5 47.6 46.6 45.7 44.7
81........................................ 53.4 52.4 51.4 50.5 49.5 48.5 47.6 46.6 45.7 44.7
82........................................ 53.4 52.4 51.4 50.5 49.5 48.5 47.6 46.6 45.6 44.7
83........................................ 53.4 52.4 51.4 50.5 49.5 48.5 47.6 46.6 45.6 44.7
84........................................ 53.4 52.4 51.4 50.5 49.5 48.5 47.6 46.6 45.6 44.7
85........................................ 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.6 45.6 44.7
86........................................ 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.6 45.6 44.6
87........................................ 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.6 45.6 44.6
88........................................ 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.6 45.6 44.6
89........................................ 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.6 45.6 44.6
90........................................ 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.6 45.6 44.6
91........................................ 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.6 45.6 44.6
92........................................ 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.6 45.6 44.6
93........................................ 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.6 45.6 44.6
94........................................ 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.6 45.6 44.6
95........................................ 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.5 45.6 44.6
96........................................ 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.5 45.6 44.6
97........................................ 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.5 45.6 44.6
98........................................ 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.5 45.6 44.6
99........................................ 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.5 45.6 44.6
100....................................... 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.5 45.6 44.6
101....................................... 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.5 45.6 44.6
102....................................... 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.5 45.6 44.6
103....................................... 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.5 45.6 44.6
104....................................... 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.5 45.6 44.6
105....................................... 53.3 52.4 51.4 50.4 49.4 48.5 47.5 46.5 45.6 44.6
106....................................... 53.3 52.4 51.4 50.4 49.4 48.5 47.5 46.5 45.6 44.6
107....................................... 53.3 52.4 51.4 50.4 49.4 48.5 47.5 46.5 45.6 44.6
108....................................... 53.3 52.4 51.4 50.4 49.4 48.5 47.5 46.5 45.6 44.6
109....................................... 53.3 52.4 51.4 50.4 49.4 48.5 47.5 46.5 45.6 44.6
110....................................... 53.3 52.4 51.4 50.4 49.4 48.5 47.5 46.5 45.6 44.6
111....................................... 53.3 52.4 51.4 50.4 49.4 48.5 47.5 46.5 45.6 44.6
112....................................... 53.3 52.4 51.4 50.4 49.4 48.5 47.5 46.5 45.6 44.6
113....................................... 53.3 52.4 51.4 50.4 49.4 48.5 47.5 46.5 45.6 44.6
114....................................... 53.3 52.4 51.4 50.4 49.4 48.5 47.5 46.5 45.6 44.6
115+...................................... 53.3 52.4 51.4 50.4 49.4 48.5 47.5 46.5 45.6 44.6
--------------------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------------------
Ages 40 41 42 43 44 45 46 47 48 49
--------------------------------------------------------------------------------------------------------------------------------------------------------
40........................................ 50.2 49.8 49.3 48.9 48.5 48.1 47.7 47.4 47.1 46.8
41........................................ 49.8 49.3 48.8 48.3 47.9 47.5 47.1 46.7 46.4 46.1
42........................................ 49.3 48.8 48.3 47.8 47.3 46.9 46.5 46.1 45.8 45.4
43........................................ 48.9 48.3 47.8 47.3 46.8 46.3 45.9 45.5 45.1 44.8
44........................................ 48.5 47.9 47.3 46.8 46.3 45.8 45.4 44.9 44.5 44.2
45........................................ 48.1 47.5 46.9 46.3 45.8 45.3 44.8 44.4 44.0 43.6
46........................................ 47.7 47.1 46.5 45.9 45.4 44.8 44.3 43.9 43.4 43.0
47........................................ 47.4 46.7 46.1 45.5 44.9 44.4 43.9 43.4 42.9 42.4
48........................................ 47.1 46.4 45.8 45.1 44.5 44.0 43.4 42.9 42.4 41.9
49........................................ 46.8 46.1 45.4 44.8 44.2 43.6 43.0 42.4 41.9 41.4
50........................................ 46.5 45.8 45.1 44.4 43.8 43.2 42.6 42.0 41.5 40.9
51........................................ 46.3 45.5 44.8 44.1 43.5 42.8 42.2 41.6 41.0 40.5
52........................................ 46.0 45.3 44.6 43.8 43.2 42.5 41.8 41.2 40.6 40.1
53........................................ 45.8 45.1 44.3 43.6 42.9 42.2 41.5 40.9 40.3 39.7
54........................................ 45.6 44.8 44.1 43.3 42.6 41.9 41.2 40.5 39.9 39.3
55........................................ 45.5 44.7 43.9 43.1 42.4 41.6 40.9 40.2 39.6 38.9
56........................................ 45.3 44.5 43.7 42.9 42.1 41.4 40.7 40.0 39.3 38.6
57........................................ 45.1 44.3 43.5 42.7 41.9 41.2 40.4 39.7 39.0 38.3
58........................................ 45.0 44.2 43.3 42.5 41.7 40.9 40.2 39.4 38.7 38.0
59........................................ 44.9 44.0 43.2 42.4 41.5 40.7 40.0 39.2 38.5 37.8
[[Page 19019]]
60........................................ 44.7 43.9 43.0 42.2 41.4 40.6 39.8 39.0 38.2 37.5
61........................................ 44.6 43.8 42.9 42.1 41.2 40.4 39.6 38.8 38.0 37.3
62........................................ 44.5 43.7 42.8 41.9 41.1 40.3 39.4 38.6 37.8 37.1
63........................................ 44.5 43.6 42.7 41.8 41.0 40.1 39.3 38.5 37.7 36.9
64........................................ 44.4 43.5 42.6 41.7 40.8 40.0 39.2 38.3 37.5 36.7
65........................................ 44.3 43.4 42.5 41.6 40.7 39.9 39.0 38.2 37.4 36.6
66........................................ 44.2 43.3 42.4 41.5 40.6 39.8 38.9 38.1 37.2 36.4
67........................................ 44.2 43.3 42.3 41.4 40.6 39.7 38.8 38.0 37.1 36.3
68........................................ 44.1 43.2 42.3 41.4 40.5 39.6 38.7 37.9 37.0 36.2
69........................................ 44.1 43.1 42.2 41.3 40.4 39.5 38.6 37.8 36.9 36.0
70........................................ 44.0 43.1 42.2 41.3 40.3 39.4 38.6 37.7 36.8 35.9
71........................................ 44.0 43.0 42.1 41.2 40.3 39.4 38.5 37.6 36.7 35.9
72........................................ 43.9 43.0 42.1 41.1 40.2 39.3 38.4 37.5 36.6 35.8
73........................................ 43.9 43.0 42.0 41.1 40.2 39.3 38.4 37.5 36.6 35.7
74........................................ 43.9 42.9 42.0 41.1 40.1 39.2 38.3 37.4 36.5 35.6
75........................................ 43.8 42.9 42.0 41.0 40.1 39.2 38.3 37.4 36.5 35.6
76........................................ 43.8 42.9 41.9 41.0 40.1 39.1 38.2 37.3 36.4 35.5
77........................................ 43.8 42.9 41.9 41.0 40.0 39.1 38.2 37.3 36.4 35.5
78........................................ 43.8 42.8 41.9 40.9 40.0 39.1 38.2 37.2 36.3 35.4
79........................................ 43.8 42.8 41.9 40.9 40.0 39.1 38.1 37.2 36.3 35.4
80........................................ 43.7 42.8 41.8 40.9 40.0 39.0 38.1 37.2 36.3 35.4
81........................................ 43.7 42.8 41.8 40.9 39.9 39.0 38.1 37.2 36.2 35.3
82........................................ 43.7 42.8 41.8 40.9 39.9 39.0 38.1 37.1 36.2 35.3
83........................................ 43.7 42.8 41.8 40.9 39.9 39.0 38.0 37.1 36.2 35.3
84........................................ 43.7 42.7 41.8 40.8 39.9 39.0 38.0 37.1 36.2 35.3
85........................................ 43.7 42.7 41.8 40.8 39.9 38.9 38.0 37.1 36.2 35.2
86........................................ 43.7 42.7 41.8 40.8 39.9 38.9 38.0 37.1 36.1 35.2
87........................................ 43.7 42.7 41.8 40.8 39.9 38.9 38.0 37.0 36.1 35.2
88........................................ 43.7 42.7 41.8 40.8 39.9 38.9 38.0 37.0 36.1 35.2
89........................................ 43.7 42.7 41.7 40.8 39.8 38.9 38.0 37.0 36.1 35.2
90........................................ 43.7 42.7 41.7 40.8 39.8 38.9 38.0 37.0 36.1 35.2
91........................................ 43.7 42.7 41.7 40.8 39.8 38.9 37.9 37.0 36.1 35.2
92........................................ 43.7 42.7 41.7 40.8 39.8 38.9 37.9 37.0 36.1 35.1
93........................................ 43.7 42.7 41.7 40.8 39.8 38.9 37.9 37.0 36.1 35.1
94........................................ 43.7 42.7 41.7 40.8 39.8 38.9 37.9 37.0 36.1 35.1
95........................................ 43.6 42.7 41.7 40.8 39.8 38.9 37.9 37.0 36.1 35.1
96........................................ 43.6 42.7 41.7 40.8 39.8 38.9 37.9 37.0 36.1 35.1
97........................................ 43.6 42.7 41.7 40.8 39.8 38.9 37.9 37.0 36.1 35.1
98........................................ 43.6 42.7 41.7 40.8 39.8 38.9 37.9 37.0 36.0 35.1
99........................................ 43.6 42.7 41.7 40.8 39.8 38.9 37.9 37.0 36.0 35.1
100....................................... 43.6 42.7 41.7 40.8 39.8 38.9 37.9 37.0 36.0 35.1
101....................................... 43.6 42.7 41.7 40.8 39.8 38.9 37.9 37.0 36.0 35.1
102....................................... 43.6 42.7 41.7 40.8 39.8 38.9 37.9 37.0 36.0 35.1
103....................................... 43.6 42.7 41.7 40.8 39.8 38.9 37.9 37.0 36.0 35.1
104....................................... 43.6 42.7 41.7 40.8 39.8 38.8 37.9 37.0 36.0 35.1
105....................................... 43.6 42.7 41.7 40.8 39.8 38.8 37.9 37.0 36.0 35.1
106....................................... 43.6 42.7 41.7 40.8 39.8 38.8 37.9 37.0 36.0 35.1
107....................................... 43.6 42.7 41.7 40.8 39.8 38.8 37.9 37.0 36.0 35.1
108....................................... 43.6 42.7 41.7 40.8 39.8 38.8 37.9 37.0 36.0 35.1
109....................................... 43.6 42.7 41.7 40.7 39.8 38.8 37.9 37.0 36.0 35.1
110....................................... 43.6 42.7 41.7 40.7 39.8 38.8 37.9 37.0 36.0 35.1
111....................................... 43.6 42.7 41.7 40.7 39.8 38.8 37.9 37.0 36.0 35.1
112....................................... 43.6 42.7 41.7 40.7 39.8 38.8 37.9 37.0 36.0 35.1
113....................................... 43.6 42.7 41.7 40.7 39.8 38.8 37.9 37.0 36.0 35.1
114....................................... 43.6 42.7 41.7 40.7 39.8 38.8 37.9 37.0 36.0 35.1
115+...................................... 43.6 42.7 41.7 40.7 39.8 38.8 37.9 37.0 36.0 35.1
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--------------------------------------------------------------------------------------------------------------------------------------------------------
Ages 50 51 52 53 54 55 56 57 58 59
--------------------------------------------------------------------------------------------------------------------------------------------------------
50........................................ 40.4 40.0 39.5 39.1 38.7 38.3 38.0 37.6 37.3 37.1
51........................................ 40.0 39.5 39.0 38.5 38.1 37.7 37.4 37.0 36.7 36.4
52........................................ 39.5 39.0 38.5 38.0 37.6 37.2 36.8 36.4 36.0 35.7
53........................................ 39.1 38.5 38.0 37.5 37.1 36.6 36.2 35.8 35.4 35.1
54........................................ 38.7 38.1 37.6 37.1 36.6 36.1 35.7 35.2 34.8 34.5
55........................................ 38.3 37.7 37.2 36.6 36.1 35.6 35.1 34.7 34.3 33.9
56........................................ 38.0 37.4 36.8 36.2 35.7 35.1 34.7 34.2 33.7 33.3
57........................................ 37.6 37.0 36.4 35.8 35.2 34.7 34.2 33.7 33.2 32.8
58........................................ 37.3 36.7 36.0 35.4 34.8 34.3 33.7 33.2 32.8 32.3
59........................................ 37.1 36.4 35.7 35.1 34.5 33.9 33.3 32.8 32.3 31.8
60........................................ 36.8 36.1 35.4 34.8 34.1 33.5 32.9 32.4 31.9 31.3
61........................................ 36.6 35.8 35.1 34.5 33.8 33.2 32.6 32.0 31.4 30.9
62........................................ 36.3 35.6 34.9 34.2 33.5 32.9 32.2 31.6 31.1 30.5
63........................................ 36.1 35.4 34.6 33.9 33.2 32.6 31.9 31.3 30.7 30.1
[[Page 19020]]
64........................................ 35.9 35.2 34.4 33.7 33.0 32.3 31.6 31.0 30.4 29.8
65........................................ 35.8 35.0 34.2 33.5 32.7 32.0 31.4 30.7 30.0 29.4
66........................................ 35.6 34.8 34.0 33.3 32.5 31.8 31.1 30.4 29.8 29.1
67........................................ 35.5 34.7 33.9 33.1 32.3 31.6 30.9 30.2 29.5 28.8
68........................................ 35.3 34.5 33.7 32.9 32.1 31.4 30.7 29.9 29.2 28.6
69........................................ 35.2 34.4 33.6 32.8 32.0 31.2 30.5 29.7 29.0 28.3
70........................................ 35.1 34.3 33.4 32.6 31.8 31.1 30.3 29.5 28.8 28.1
71........................................ 35.0 34.2 33.3 32.5 31.7 30.9 30.1 29.4 28.6 27.9
72........................................ 34.9 34.1 33.2 32.4 31.6 30.8 30.0 29.2 28.4 27.7
73........................................ 34.8 34.0 33.1 32.3 31.5 30.6 29.8 29.1 28.3 27.5
74........................................ 34.8 33.9 33.0 32.2 31.4 30.5 29.7 28.9 28.1 27.4
75........................................ 34.7 33.8 33.0 32.1 31.3 30.4 29.6 28.8 28.0 27.2
76........................................ 34.6 33.8 32.9 32.0 31.2 30.3 29.5 28.7 27.9 27.1
77........................................ 34.6 33.7 32.8 32.0 31.1 30.3 29.4 28.6 27.8 27.0
78........................................ 34.5 33.6 32.8 31.9 31.0 30.2 29.3 28.5 27.7 26.9
79........................................ 34.5 33.6 32.7 31.8 31.0 30.1 29.3 28.4 27.6 26.8
80........................................ 34.5 33.6 32.7 31.8 30.9 30.1 29.2 28.4 27.5 26.7
81........................................ 34.4 33.5 32.6 31.8 30.9 30.0 29.2 28.3 27.5 26.6
82........................................ 34.4 33.5 32.6 31.7 30.8 30.0 29.1 28.3 27.4 26.6
83........................................ 34.4 33.5 32.6 31.7 30.8 29.9 29.1 28.2 27.4 26.5
84........................................ 34.3 33.4 32.5 31.7 30.8 29.9 29.0 28.2 27.3 26.5
85........................................ 34.3 33.4 32.5 31.6 30.7 29.9 29.0 28.1 27.3 26.4
86........................................ 34.3 33.4 32.5 31.6 30.7 29.8 29.0 28.1 27.2 26.4
87........................................ 34.3 33.4 32.5 31.6 30.7 29.8 28.9 28.1 27.2 26.4
88........................................ 34.3 33.4 32.5 31.6 30.7 29.8 28.9 28.0 27.2 26.3
89........................................ 34.3 33.3 32.4 31.5 30.7 29.8 28.9 28.0 27.2 26.3
90........................................ 34.2 33.3 32.4 31.5 30.6 29.8 28.9 28.0 27.1 26.3
91........................................ 34.2 33.3 32.4 31.5 30.6 29.7 28.9 28.0 27.1 26.3
92........................................ 34.2 33.3 32.4 31.5 30.6 29.7 28.8 28.0 27.1 26.2
93........................................ 34.2 33.3 32.4 31.5 30.6 29.7 28.8 28.0 27.1 26.2
94........................................ 34.2 33.3 32.4 31.5 30.6 29.7 28.8 27.9 27.1 26.2
95........................................ 34.2 33.3 32.4 31.5 30.6 29.7 28.8 27.9 27.1 26.2
96........................................ 34.2 33.3 32.4 31.5 30.6 29.7 28.8 27.9 27.0 26.2
97........................................ 34.2 33.3 32.4 31.5 30.6 29.7 28.8 27.9 27.0 26.2
98........................................ 34.2 33.3 32.4 31.5 30.6 29.7 28.8 27.9 27.0 26.2
99........................................ 34.2 33.3 32.4 31.5 30.6 29.7 28.8 27.9 27.0 26.2
100....................................... 34.2 33.3 32.4 31.5 30.6 29.7 28.8 27.9 27.0 26.1
101....................................... 34.2 33.3 32.4 31.5 30.6 29.7 28.8 27.9 27.0 26.1
102....................................... 34.2 33.3 32.4 31.4 30.5 29.7 28.8 27.9 27.0 26.1
103....................................... 34.2 33.3 32.4 31.4 30.5 29.7 28.8 27.9 27.0 26.1
104....................................... 34.2 33.3 32.4 31.4 30.5 29.6 28.8 27.9 27.0 26.1
105....................................... 34.2 33.3 32.3 31.4 30.5 29.6 28.8 27.9 27.0 26.1
106....................................... 34.2 33.3 32.3 31.4 30.5 29.6 28.8 27.9 27.0 26.1
107....................................... 34.2 33.3 32.3 31.4 30.5 29.6 28.8 27.9 27.0 26.1
108....................................... 34.2 33.3 32.3 31.4 30.5 29.6 28.8 27.9 27.0 26.1
109....................................... 34.2 33.3 32.3 31.4 30.5 29.6 28.7 27.9 27.0 26.1
110....................................... 34.2 33.3 32.3 31.4 30.5 29.6 28.7 27.9 27.0 26.1
111....................................... 34.2 33.3 32.3 31.4 30.5 29.6 28.7 27.9 27.0 26.1
112....................................... 34.2 33.3 32.3 31.4 30.5 29.6 28.7 27.9 27.0 26.1
113....................................... 34.2 33.3 32.3 31.4 30.5 29.6 28.7 27.9 27.0 26.1
114....................................... 34.2 33.3 32.3 31.4 30.5 29.6 28.7 27.9 27.0 26.1
115+...................................... 34.2 33.3 32.3 31.4 30.5 29.6 28.7 27.9 27.0 26.1
--------------------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------------------
Ages 60 61 62 63 64 65 66 67 68 69
--------------------------------------------------------------------------------------------------------------------------------------------------------
60........................................ 30.9 30.4 30.0 29.6 29.2 28.8 28.5 28.2 27.9 27.6
61........................................ 30.4 29.9 29.5 29.0 28.6 28.3 27.9 27.6 27.3 27.0
62........................................ 30.0 29.5 29.0 28.5 28.1 27.7 27.3 27.0 26.7 26.4
63........................................ 29.6 29.0 28.5 28.1 27.6 27.2 26.8 26.4 26.1 25.7
64........................................ 29.2 28.6 28.1 27.6 27.1 26.7 26.3 25.9 25.5 25.2
65........................................ 28.8 28.3 27.7 27.2 26.7 26.2 25.8 25.4 25.0 24.6
66........................................ 28.5 27.9 27.3 26.8 26.3 25.8 25.3 24.9 24.5 24.1
67........................................ 28.2 27.6 27.0 26.4 25.9 25.4 24.9 24.4 24.0 23.6
68........................................ 27.9 27.3 26.7 26.1 25.5 25.0 24.5 24.0 23.5 23.1
69........................................ 27.6 27.0 26.4 25.7 25.2 24.6 24.1 23.6 23.1 22.6
70........................................ 27.4 26.7 26.1 25.4 24.8 24.3 23.7 23.2 22.7 22.2
71........................................ 27.2 26.5 25.8 25.2 24.5 23.9 23.4 22.8 22.3 21.8
72........................................ 27.0 26.3 25.6 24.9 24.3 23.7 23.1 22.5 22.0 21.4
73........................................ 26.8 26.1 25.4 24.7 24.0 23.4 22.8 22.2 21.6 21.1
74........................................ 26.6 25.9 25.2 24.5 23.8 23.1 22.5 21.9 21.3 20.8
75........................................ 26.5 25.7 25.0 24.3 23.6 22.9 22.3 21.6 21.0 20.5
76........................................ 26.3 25.6 24.8 24.1 23.4 22.7 22.0 21.4 20.8 20.2
77........................................ 26.2 25.4 24.7 23.9 23.2 22.5 21.8 21.2 20.6 19.9
[[Page 19021]]
78........................................ 26.1 25.3 24.6 23.8 23.1 22.4 21.7 21.0 20.3 19.7
79........................................ 26.0 25.2 24.4 23.7 22.9 22.2 21.5 20.8 20.1 19.5
80........................................ 25.9 25.1 24.3 23.6 22.8 22.1 21.3 20.6 20.0 19.3
81........................................ 25.8 25.0 24.2 23.4 22.7 21.9 21.2 20.5 19.8 19.1
82........................................ 25.8 24.9 24.1 23.4 22.6 21.8 21.1 20.4 19.7 19.0
83........................................ 25.7 24.9 24.1 23.3 22.5 21.7 21.0 20.2 19.5 18.8
84........................................ 25.6 24.8 24.0 23.2 22.4 21.6 20.9 20.1 19.4 18.7
85........................................ 25.6 24.8 23.9 23.1 22.3 21.6 20.8 20.1 19.3 18.6
86........................................ 25.5 24.7 23.9 23.1 22.3 21.5 20.7 20.0 19.2 18.5
87........................................ 25.5 24.7 23.8 23.0 22.2 21.4 20.7 19.9 19.2 18.4
88........................................ 25.5 24.6 23.8 23.0 22.2 21.4 20.6 19.8 19.1 18.3
89........................................ 25.4 24.6 23.8 22.9 22.1 21.3 20.5 19.8 19.0 18.3
90........................................ 25.4 24.6 23.7 22.9 22.1 21.3 20.5 19.7 19.0 18.2
91........................................ 25.4 24.5 23.7 22.9 22.1 21.3 20.5 19.7 18.9 18.2
92........................................ 25.4 24.5 23.7 22.9 22.0 21.2 20.4 19.6 18.9 18.1
93........................................ 25.4 24.5 23.7 22.8 22.0 21.2 20.4 19.6 18.8 18.1
94........................................ 25.3 24.5 23.6 22.8 22.0 21.2 20.4 19.6 18.8 18.0
95........................................ 25.3 24.5 23.6 22.8 22.0 21.1 20.3 19.6 18.8 18.0
96........................................ 25.3 24.5 23.6 22.8 21.9 21.1 20.3 19.5 18.8 18.0
97........................................ 25.3 24.5 23.6 22.8 21.9 21.1 20.3 19.5 18.7 18.0
98........................................ 25.3 24.4 23.6 22.8 21.9 21.1 20.3 19.5 18.7 17.9
99........................................ 25.3 24.4 23.6 22.7 21.9 21.1 20.3 19.5 18.7 17.9
100....................................... 25.3 24.4 23.6 22.7 21.9 21.1 20.3 19.5 18.7 17.9
101....................................... 25.3 24.4 23.6 22.7 21.9 21.1 20.2 19.4 18.7 17.9
102....................................... 25.3 24.4 23.6 22.7 21.9 21.1 20.2 19.4 18.6 17.9
103....................................... 25.3 24.4 23.6 22.7 21.9 21.0 20.2 19.4 18.6 17.9
104....................................... 25.3 24.4 23.5 22.7 21.9 21.0 20.2 19.4 18.6 17.8
105....................................... 25.3 24.4 23.5 22.7 21.9 21.0 20.2 19.4 18.6 17.8
106....................................... 25.3 24.4 23.5 22.7 21.9 21.0 20.2 19.4 18.6 17.8
107....................................... 25.2 24.4 23.5 22.7 21.8 21.0 20.2 19.4 18.6 17.8
108....................................... 25.2 24.4 23.5 22.7 21.8 21.0 20.2 19.4 18.6 17.8
109....................................... 25.2 24.4 23.5 22.7 21.8 21.0 20.2 19.4 18.6 17.8
110....................................... 25.2 24.4 23.5 22.7 21.8 21.0 20.2 19.4 18.6 17.8
111....................................... 25.2 24.4 23.5 22.7 21.8 21.0 20.2 19.4 18.6 17.8
112....................................... 25.2 24.4 23.5 22.7 21.8 21.0 20.2 19.4 18.6 17.8
113....................................... 25.2 24.4 23.5 22.7 21.8 21.0 20.2 19.4 18.6 17.8
114....................................... 25.2 24.4 23.5 22.7 21.8 21.0 20.2 19.4 18.6 17.8
115+...................................... 25.2 24.4 23.5 22.7 21.8 21.0 20.2 19.4 18.6 17.8
--------------------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------------------
Ages 70 71 72 73 74 75 76 77 78 79
--------------------------------------------------------------------------------------------------------------------------------------------------------
70........................................ 21.8 21.3 20.9 20.6 20.2 19.9 19.6 19.4 19.1 18.9
71........................................ 21.3 20.9 20.5 20.1 19.7 19.4 19.1 18.8 18.5 18.3
72........................................ 20.9 20.5 20.0 19.6 19.3 18.9 18.6 18.3 18.0 17.7
73........................................ 20.6 20.1 19.6 19.2 18.8 18.4 18.1 17.8 17.5 17.2
74........................................ 20.2 19.7 19.3 18.8 18.4 18.0 17.6 17.3 17.0 16.7
75........................................ 19.9 19.4 18.9 18.4 18.0 17.6 17.2 16.8 16.5 16.2
76........................................ 19.6 19.1 18.6 18.1 17.6 17.2 16.8 16.4 16.0 15.7
77........................................ 19.4 18.8 18.3 17.8 17.3 16.8 16.4 16.0 15.6 15.3
78........................................ 19.1 18.5 18.0 17.5 17.0 16.5 16.0 15.6 15.2 14.9
79........................................ 18.9 18.3 17.7 17.2 16.7 16.2 15.7 15.3 14.9 14.5
80........................................ 18.7 18.1 17.5 16.9 16.4 15.9 15.4 15.0 14.5 14.1
81........................................ 18.5 17.9 17.3 16.7 16.2 15.6 15.1 14.7 14.2 13.8
82........................................ 18.3 17.7 17.1 16.5 15.9 15.4 14.9 14.4 13.9 13.5
83........................................ 18.2 17.5 16.9 16.3 15.7 15.2 14.7 14.2 13.7 13.2
84........................................ 18.0 17.4 16.7 16.1 15.5 15.0 14.4 13.9 13.4 13.0
85........................................ 17.9 17.3 16.6 16.0 15.4 14.8 14.3 13.7 13.2 12.8
86........................................ 17.8 17.1 16.5 15.8 15.2 14.6 14.1 13.5 13.0 12.5
87........................................ 17.7 17.0 16.4 15.7 15.1 14.5 13.9 13.4 12.9 12.4
88........................................ 17.6 16.9 16.3 15.6 15.0 14.4 13.8 13.2 12.7 12.2
89........................................ 17.6 16.9 16.2 15.5 14.9 14.3 13.7 13.1 12.6 12.0
90........................................ 17.5 16.8 16.1 15.4 14.8 14.2 13.6 13.0 12.4 11.9
91........................................ 17.4 16.7 16.0 15.4 14.7 14.1 13.5 12.9 12.3 11.8
92........................................ 17.4 16.7 16.0 15.3 14.6 14.0 13.4 12.8 12.2 11.7
93........................................ 17.3 16.6 15.9 15.2 14.6 13.9 13.3 12.7 12.1 11.6
94........................................ 17.3 16.6 15.9 15.2 14.5 13.9 13.2 12.6 12.0 11.5
95........................................ 17.3 16.5 15.8 15.1 14.5 13.8 13.2 12.6 12.0 11.4
96........................................ 17.2 16.5 15.8 15.1 14.4 13.8 13.1 12.5 11.9 11.3
97........................................ 17.2 16.5 15.8 15.1 14.4 13.7 13.1 12.5 11.9 11.3
98........................................ 17.2 16.4 15.7 15.0 14.3 13.7 13.0 12.4 11.8 11.2
99........................................ 17.2 16.4 15.7 15.0 14.3 13.6 13.0 12.4 11.8 11.2
100....................................... 17.1 16.4 15.7 15.0 14.3 13.6 12.9 12.3 11.7 11.1
101....................................... 17.1 16.4 15.6 14.9 14.2 13.6 12.9 12.3 11.7 11.1
[[Page 19022]]
102....................................... 17.1 16.4 15.6 14.9 14.2 13.5 12.9 12.2 11.6 11.0
103....................................... 17.1 16.3 15.6 14.9 14.2 13.5 12.9 12.2 11.6 11.0
104....................................... 17.1 16.3 15.6 14.9 14.2 13.5 12.8 12.2 11.6 11.0
105....................................... 17.1 16.3 15.6 14.9 14.2 13.5 12.8 12.2 11.5 10.9
106....................................... 17.1 16.3 15.6 14.8 14.1 13.5 12.8 12.2 11.5 10.9
107....................................... 17.0 16.3 15.6 14.8 14.1 13.4 12.8 12.1 11.5 10.9
108....................................... 17.0 16.3 15.5 14.8 14.1 13.4 12.8 12.1 11.5 10.9
109....................................... 17.0 16.3 15.5 14.8 14.1 13.4 12.8 12.1 11.5 10.9
110....................................... 17.0 16.3 15.5 14.8 14.1 13.4 12.7 12.1 11.5 10.9
111....................................... 17.0 16.3 15.5 14.8 14.1 13.4 12.7 12.1 11.5 10.8
112....................................... 17.0 16.3 15.5 14.8 14.1 13.4 12.7 12.1 11.5 10.8
113....................................... 17.0 16.3 15.5 14.8 14.1 13.4 12.7 12.1 11.4 10.8
114....................................... 17.0 16.3 15.5 14.8 14.1 13.4 12.7 12.1 11.4 10.8
115+...................................... 17.0 16.3 15.5 14.8 14.1 13.4 12.7 12.1 11.4 10.8
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Ages 80 81 82 83 84 85 86 87 88 89
--------------------------------------------------------------------------------------------------------------------------------------------------------
80........................................ 13.8 13.4 13.1 12.8 12.6 12.3 12.1 11.9 11.7 11.5
81........................................ 13.4 13.1 12.7 12.4 12.2 11.9 11.7 11.4 11.3 11.1
82........................................ 13.1 12.7 12.4 12.1 11.8 11.5 11.3 11.0 10.8 10.6
83........................................ 12.8 12.4 12.1 11.7 11.4 11.1 10.9 10.6 10.4 10.2
84........................................ 12.6 12.2 11.8 11.4 11.1 10.8 10.5 10.3 10.1 9.9
85........................................ 12.3 11.9 11.5 11.1 10.8 10.5 10.2 9.9 9.7 9.5
86........................................ 12.1 11.7 11.3 10.9 10.5 10.2 9.9 9.6 9.4 9.2
87........................................ 11.9 11.4 11.0 10.6 10.3 9.9 9.6 9.4 9.1 8.9
88........................................ 11.7 11.3 10.8 10.4 10.1 9.7 9.4 9.1 8.8 8.6
89........................................ 11.5 11.1 10.6 10.2 9.9 9.5 9.2 8.9 8.6 8.3
90........................................ 11.4 10.9 10.5 10.1 9.7 9.3 9.0 8.6 8.3 8.1
91........................................ 11.3 10.8 10.3 9.9 9.5 9.1 8.8 8.4 8.1 7.9
92........................................ 11.2 10.7 10.2 9.8 9.3 9.0 8.6 8.3 8.0 7.7
93........................................ 11.1 10.6 10.1 9.6 9.2 8.8 8.5 8.1 7.8 7.5
94........................................ 11.0 10.5 10.0 9.5 9.1 8.7 8.3 8.0 7.6 7.3
95........................................ 10.9 10.4 9.9 9.4 9.0 8.6 8.2 7.8 7.5 7.2
96........................................ 10.8 10.3 9.8 9.3 8.9 8.5 8.1 7.7 7.4 7.1
97........................................ 10.7 10.2 9.7 9.2 8.8 8.4 8.0 7.6 7.3 6.9
98........................................ 10.7 10.1 9.6 9.2 8.7 8.3 7.9 7.5 7.1 6.8
99........................................ 10.6 10.1 9.6 9.1 8.6 8.2 7.8 7.4 7.0 6.7
100....................................... 10.6 10.0 9.5 9.0 8.5 8.1 7.7 7.3 6.9 6.6
101....................................... 10.5 10.0 9.4 9.0 8.5 8.0 7.6 7.2 6.9 6.5
102....................................... 10.5 9.9 9.4 8.9 8.4 8.0 7.5 7.1 6.8 6.4
103....................................... 10.4 9.9 9.4 8.8 8.4 7.9 7.5 7.1 6.7 6.3
104....................................... 10.4 9.8 9.3 8.8 8.3 7.9 7.4 7.0 6.6 6.3
105....................................... 10.4 9.8 9.3 8.8 8.3 7.8 7.4 7.0 6.6 6.2
106....................................... 10.3 9.8 9.2 8.7 8.2 7.8 7.3 6.9 6.5 6.2
107....................................... 10.3 9.8 9.2 8.7 8.2 7.7 7.3 6.9 6.5 6.1
108....................................... 10.3 9.7 9.2 8.7 8.2 7.7 7.3 6.8 6.4 6.1
109....................................... 10.3 9.7 9.2 8.7 8.2 7.7 7.2 6.8 6.4 6.0
110....................................... 10.3 9.7 9.2 8.6 8.1 7.7 7.2 6.8 6.4 6.0
111....................................... 10.3 9.7 9.1 8.6 8.1 7.6 7.2 6.8 6.3 6.0
112....................................... 10.2 9.7 9.1 8.6 8.1 7.6 7.2 6.7 6.3 5.9
113....................................... 10.2 9.7 9.1 8.6 8.1 7.6 7.2 6.7 6.3 5.9
114....................................... 10.2 9.7 9.1 8.6 8.1 7.6 7.1 6.7 6.3 5.9
115+...................................... 10.2 9.7 9.1 8.6 8.1 7.6 7.1 6.7 6.3 5.9
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AGES
90
91
92
93
Ages 90 91 92 93 94 95 96 97 98 99 94
95
96
97
98
99
---------------------------------------------------------------------------------------------------------------------------------------------------- ------
90.................................... 7.8 7.6 7.4 7.2 7.1 6.9 6.8 6.6 6.5 6.4
91.................................... 7.6 7.4 7.2 7.0 6.8 6.7 6.5 6.4 6.3 6.1
92.................................... 7.4 7.2 7.0 6.8 6.6 6.4 6.3 6.1 6.0 5.9
93.................................... 7.2 7.0 6.8 6.6 6.4 6.2 6.1 5.9 5.8 5.6
94.................................... 7.1 6.8 6.6 6.4 6.2 6.0 5.9 5.7 5.6 5.4
95.................................... 6.9 6.7 6.4 6.2 6.0 5.8 5.7 5.5 5.4 5.2
96.................................... 6.8 6.5 6.3 6.1 5.9 5.7 5.5 5.3 5.2 5.0
97.................................... 6.6 6.4 6.1 5.9 5.7 5.5 5.3 5.2 5.0 4.9
98.................................... 6.5 6.3 6.0 5.8 5.6 5.4 5.2 5.0 4.8 4.7
99.................................... 6.4 6.1 5.9 5.6 5.4 5.2 5.0 4.9 4.7 4.5
100................................... 6.3 6.0 5.8 5.5 5.3 5.1 4.9 4.7 4.5 4.4
101................................... 6.2 5.9 5.6 5.4 5.2 5.0 4.8 4.6 4.4 4.2
102................................... 6.1 5.8 5.5 5.3 5.1 4.8 4.6 4.4 4.3 4.1
103................................... 6.0 5.7 5.4 5.2 5.0 4.7 4.5 4.3 4.1 4.0
104................................... 5.9 5.6 5.4 5.1 4.9 4.6 4.4 4.2 4.0 3.8
105................................... 5.9 5.6 5.3 5.0 4.8 4.5 4.3 4.1 3.9 3.7
106................................... 5.8 5.5 5.2 4.9 4.7 4.5 4.2 4.0 3.8 3.6
[[Page 19023]]
107................................... 5.8 5.4 5.1 4.9 4.6 4.4 4.2 3.9 3.7 3.5
108................................... 5.7 5.4 5.1 4.8 4.6 4.3 4.1 3.9 3.7 3.5
109................................... 5.7 5.3 5.0 4.8 4.5 4.3 4.0 3.8 3.6 3.4
110................................... 5.6 5.3 5.0 4.7 4.5 4.2 4.0 3.8 3.5 3.3
111................................... 5.6 5.3 5.0 4.7 4.4 4.2 3.9 3.7 3.5 3.3
112................................... 5.6 5.3 4.9 4.7 4.4 4.1 3.9 3.7 3.5 3.2
113................................... 5.6 5.2 4.9 4.6 4.4 4.1 3.9 3.6 3.4 3.2
114................................... 5.6 5.2 4.9 4.6 4.3 4.1 3.9 3.6 3.4 3.2
115+.................................. 5.5 5.2 4.9 4.6 4.3 4.1 3.8 3.6 3.4 3.1
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Ages 100 101 102 103 104 105 106 107 108 109
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100....................................... 4.2 4.1 3.9 3.8 3.7 3.5 3.4 3.3 3.3 3.2
101....................................... 4.1 3.9 3.7 3.6 3.5 3.4 3.2 3.1 3.1 3.0
102....................................... 3.9 3.7 3.6 3.4 3.3 3.2 3.1 3.0 2.9 2.8
103....................................... 3.8 3.6 3.4 3.3 3.2 3.0 2.9 2.8 2.7 2.6
104....................................... 3.7 3.5 3.3 3.2 3.0 2.9 2.7 2.6 2.5 2.4
105....................................... 3.5 3.4 3.2 3.0 2.9 2.7 2.6 2.5 2.4 2.3
106....................................... 3.4 3.2 3.1 2.9 2.7 2.6 2.4 2.3 2.2 2.1
107....................................... 3.3 3.1 3.0 2.8 2.6 2.5 2.3 2.2 2.1 2.0
108....................................... 3.3 3.1 2.9 2.7 2.5 2.4 2.2 2.1 1.9 1.8
109....................................... 3.2 3.0 2.8 2.6 2.4 2.3 2.1 2.0 1.8 1.7
110....................................... 3.1 2.9 2.7 2.5 2.3 2.2 2.0 1.9 1.7 1.6
111....................................... 3.1 2.9 2.7 2.5 2.3 2.1 1.9 1.8 1.6 1.5
112....................................... 3.0 2.8 2.6 2.4 2.2 2.0 1.9 1.7 1.5 1.4
113....................................... 3.0 2.8 2.6 2.4 2.2 2.0 1.8 1.6 1.5 1.3
114....................................... 3.0 2.7 2.5 2.3 2.1 1.9 1.8 1.6 1.4 1.3
115+...................................... 2.9 2.7 2.5 2.3 2.1 1.9 1.7 1.5 1.4 1.2
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----------------------------------------------------------------------------------------------------------------
Ages 110 111 112 113 114 115+
----------------------------------------------------------------------------------------------------------------
110..................................... 1.5 1.4 1.3 1.2 1.1 1.1
111..................................... 1.4 1.2 1.1 1.1 1.0 1.0
112..................................... 1.3 1.1 1.0 1.0 1.0 1.0
113..................................... 1.2 1.1 1.0 1.0 1.0 1.0
114..................................... 1.1 1.0 1.0 1.0 1.0 1.0
115+.................................... 1.1 1.0 1.0 1.0 1.0 1.0
----------------------------------------------------------------------------------------------------------------
Q-4. May the tables under this section be changed?
A-4. The Single Life Table, Uniform Lifetime Table and Joint and
Last Survivor Table provided in A-1 through A-3 of this section may be
changed by the Commissioner in revenue rulings, notices, and other
guidance published in the Internal Revenue Bulletin. See
Sec. 601.601(d)(2)(ii)(b) of this chapter.
Par. 3. Section 1.403(b)-3 is added to read as follows:
Sec. 1.403(b)-3 Required minimum distributions from annuity contracts
purchased, or custodial accounts or retirement income accounts
established, by a section 501(c)(3) organization or a public school.
Q-1. Are section 403(b) contracts subject to the distribution rules
provided in section 401(a)(9)?
A-1. (a) Yes, section 403(b) contracts are subject to the
distribution rules provided in section 401(a)(9). For purposes of this
section, the term section 403(b) contract means an annuity contract
described in section 403(b)(1), custodial account described in section
403(b)(7), or retirement income account described in section 403(b)(9).
(b) For purposes of applying the distribution rules in section
401(a)(9), section 403(b) contracts will be treated as individual
retirement annuities described in section 408(b) and individual
retirement accounts described in section 408(a) (IRAs). Consequently,
except as otherwise provided in paragraph (c) of this A-1, the
distribution rules in section 401(a)(9) will be applied to section
403(b) contracts in accordance with the provisions in Sec. 1.408-8 for
purposes of determining required minimum distributions for calendar
years beginning on or after January 1, 2003.
(c)(1) The required beginning date for purposes of section
403(b)(10) is April 1 of the calendar year following the later of the
calendar year in which the employee attains 70\1/2\ or the calendar
year in which the employee retires from employment with the employer
maintaining the plan. The concept of 5-percent owner has no application
in the case of employees of employers described in section
403(b)(1)(A).
(2) The rule in A-5 of Sec. 1.408-8 does not apply to section
403(b) contracts. Thus, the surviving spouse of an employee is not
permitted to treat a section 403(b) contract of which the spouse is the
sole beneficiary as the spouse's own section 403(b) contract.
(3) Annuity payments provided with respect to retirement income
accounts described in section 403(b)(9) will not fail to satisfy the
requirements of A-4 of Sec. 1.401(a)(9)-6T merely because the payments
are not made under an annuity contract purchased from an insurance
company, provided the relationship between the annuity payments and the
retirement income accounts is not inconsistent with any rules
prescribed by the Commissioner in revenue rulings, notices, and other
guidance published in the Internal Revenue Bulletin. See
Sec. 601.601(d)(2)(ii)(b) of this chapter.
Q-2. To what benefits under section 403(b) contracts do the
distribution rules provided in section 401(a)(9) apply?
A-2. (a) The distribution rules provided in section 401(a)(9) apply
to
[[Page 19024]]
all benefits under section 403(b) contracts accruing after December 31,
1986 (post-'86 account balance). The distribution rules provided in
section 401(a)(9) do not apply to the undistributed portion of the
account balance under the section 403(b) contract valued as of December
31, 1986, exclusive of subsequent earnings (pre-'87 account balance).
Consequently, the post-'86 account balance includes earnings after
December 31, 1986 on contributions made before January 1, 1987, in
addition to the contributions made after December 31, 1986 and earnings
thereon.
(b) The issuer or custodian of the section 403(b) contract must
keep records that enable it to identify the pre-'87 account balance and
subsequent changes as set forth in paragraph (b) of this A-2 and
provide such information upon request to the relevant employee or
beneficiaries with respect to the contract. If the issuer or custodian
does not keep such records, the entire account balance will be treated
as subject to section 401(a)(9).
(c) In applying the distribution rules in section 401(a)(9), only
the post-'86 account balance is used to calculate the required minimum
distribution for a calendar year. The amount of any distribution from a
contract will be treated as being paid from the post-'86 account
balance to the extent the distribution is required to satisfy the
minimum distribution requirement with respect to that contract for a
calendar year. Any amount distributed in a calendar year from a
contract in excess of the required minimum distribution for a calendar
year with respect to that contract will be treated as paid from the
pre-'87 account balance, if any, of that contract.
(d) If an amount is distributed from the pre-'87 account balance
and rolled over to another section 403(b) contract, the amount will be
treated as part of the post-'86 account balance in that second
contract. However, if the pre-'87 account balance under a section
403(b) contract is directly transferred to another section 403(b)
contract, the amount transferred retains its character as a pre-'87
account balance, provided the issuer of the transferee contract
satisfies the recordkeeping requirements of paragraph (b) of this A-2.
(e) The distinction between the pre-'87 account balance and the
post-'86 account balance provided for under this A-2 has no relevance
for purposes of determining the portion of a distribution that is
includible in income under section 72.
Q-3. Must the pre-'87 account balance be distributed in accordance
with the incidental benefit requirement?
A-3. Yes, the pre-'87 account balance must be distributed in
accordance with the incidental benefit requirement of Sec. 1.401-
1(b)(1)(i). Distributions attributable to the pre-'87 account balance
are treated as satisfying this requirement if all distributions from
the section 403(b) contract (including distributions attributable to
the post-'86 account balance) satisfy the requirements of Sec. 1.401-
1(b)(1)(i) without regard to this section, and distributions
attributable to the post-'86 account balance satisfy the rules of this
section. Alternatively, distributions attributable to the pre-'87
account balance are treated as satisfying the incidental benefit
requirement if all distributions from the section 403(b) contract
(including distributions attributable to both the pre-'87 account
balance and the post-'86 account balance) satisfy the rules of this
section.
Q-4. Is the required minimum distribution from one section 403(b)
contract of an employee permitted to be distributed from another
section 403(b) contract in order to satisfy section 401(a)(9)?
A-4. Yes, as provided in paragraph (b) of A-1 of this section, the
distribution rules in section 401(a)(9) will be applied to section
403(b) contracts in accordance with the provisions in Sec. 1.408-8.
Thus, the required minimum distribution must be separately determined
for each section 403(b) contract of an employee. However, as provided
in A-9 of Sec. 1.408-8 with respect to IRAs, such amounts may then be
totaled and the total distribution taken from any one or more of the
individual section 403(b) contracts. However, consistent with the rules
in A-9 of Sec. 1.408-8, only amounts in section 403(b) contracts that
an individual holds as an employee may be aggregated. Amounts in
section 403(b) contracts that an individual holds as a beneficiary of
the same decedent may be aggregated, but such amounts may not be
aggregated with amounts held in section 403(b) contracts that the
individual holds as the employee or as the beneficiary of another
decedent. Distributions from section 403(b) contracts or accounts will
not satisfy the minimum distribution requirements for IRAs, nor will
distributions from IRAs satisfy the minimum distribution requirements
for section 403(b) contracts or accounts.
Par. 4. Section 1.408-8 is added to read as follows:
Sec. 1.408-8 Distribution requirements for individual retirement
plans.
The following questions and answers relate to the distribution
rules for IRAs provided in sections 408(a)(6) and 408(b)(3).
Q-1. Is an IRA subject to the distribution rules provided in
section 401(a)(9) for qualified plans?
A-1. (a) Yes, an IRA is subject to the required minimum
distribution rules provided in section 401(a)(9). In order to satisfy
section 401(a)(9) for purposes of determining required minimum
distributions for calendar years beginning on or after January 1, 2003,
the rules of Secs. 1.401(a)(9)-1 through 1.401(a)(9)-9 and 1.401(a)(9)-
6T for defined contribution plans must be applied, except as otherwise
provided in this section. For example, whether the 5-year rule or the
life expectancy rule applies to distributions after death occurring
before the IRA owner's required beginning date is determined in
accordance with Sec. 1.401(a)(9)-3 and the rules of Sec. 1.401(a)(9)-4
apply for purposes of determining an IRA owner's designated
beneficiary. Similarly, the amount of the minimum distribution required
for each calendar year from an individual account is determined in
accordance with Sec. 1.401(a)(9)-5. For purposes of this section, the
term IRA means an individual retirement account or annuity described in
section 408(a) or (b). The IRA owner is the individual for whom an IRA
is originally established by contributions for the benefit of that
individual and that individual's beneficiaries.
(b) For purposes of applying the required minimum distribution
rules in Secs. 1.401(a)(9)-1 through 1.401(a)(9)-9 and 1.401(a)(9)-6T
for qualified plans, the IRA trustee, custodian, or issuer is treated
as the plan administrator, and the IRA owner is substituted for the
employee.
(c) See A-14 and A-15 of Sec. 1.408A-6 for rules under section
401(a)(9) that apply to a Roth IRA.
Q-2. Are IRAs that receive employer contributions under a
simplified employee pension (defined in section 408(k)) or a SIMPLE IRA
(defined in section 408(p)) treated as IRAs for purposes of section
401(a)(9)?
A-2. Yes, IRAs that receive employer contributions under a
simplified employee pension (defined in section 408(k)) or a SIMPLE
plan (defined in section 408(p)) are treated as IRAs, rather than
employer plans, for purposes of section 401(a)(9) and are, therefore,
subject to the distribution rules in this section.
[[Page 19025]]
Q-3. In the case of distributions from an IRA, what does the term
required beginning date mean?
A-3. In the case of distributions from an IRA, the term required
beginning date means April 1 of the calendar year following the
calendar year in which the individual attains age 70\1/2\.
Q-4. What portion of a distribution from an IRA is not eligible for
rollover because the amount is a required minimum distribution?
A-4. The portion of a distribution that is a required minimum
distribution from an IRA and thus not eligible for rollover is
determined in the same manner as provided in A-7 of Sec. 1.402(c)-2 for
distributions from qualified plans. For example, if a minimum
distribution is required under section 401(a)(9) for a calendar year,
an amount distributed during a calendar year from an IRA is treated as
a required minimum distribution under section 401(a)(9) to the extent
that the total required minimum distribution for the year under section
401(a)(9) for that IRA has not been satisfied. This requirement may be
satisfied by a distribution from the IRA or, as permitted under A-9 of
this section, from another IRA.
Q-5. May an individual's surviving spouse elect to treat such
spouse's entire interest as a beneficiary in an individual's IRA upon
the death of the individual (or the remaining part of such interest if
distribution to the spouse has commenced) as the spouse's own account?
A-5. (a) The surviving spouse of an individual may elect, in the
manner described in paragraph (b) of this A-5, to treat the spouse's
entire interest as a beneficiary in an individual's IRA (or the
remaining part of such interest if distribution thereof has commenced
to the spouse) as the spouse's own IRA. This election is permitted to
be made at any time after the individual's date of death. In order to
make this election, the spouse must be the sole beneficiary of the IRA
and have an unlimited right to withdraw amounts from the IRA. If a
trust is named as beneficiary of the IRA, this requirement is not
satisfied even if the spouse is the sole beneficiary of the trust. If
the surviving spouse makes the election, the required minimum
distribution for the calendar year of the election and each subsequent
calendar year is determined under section 401(a)(9)(A) with the spouse
as IRA owner and not section 401(a)(9)(B) with the surviving spouse as
the deceased IRA owner's beneficiary. However, if the election is made
in the calendar year containing the IRA owner's death, the spouse is
not required to take a required minimum distribution as the IRA owner
for that calendar year. Instead, the spouse is required to take a
required minimum distribution for that year, determined with respect to
the deceased IRA owner under the rules of A-4(a) of Sec. 1.401(a)(9)-5,
to the extent such a distribution was not made to the IRA owner before
death.
(b) The election described in paragraph (a) of this A-5 is made by
the surviving spouse redesignating the account as an account in the
name of the surviving spouse as IRA owner rather than as beneficiary.
Alternatively, a surviving spouse eligible to make the election is
deemed to have made the election if, at any time, either of the
following occurs --
(1) Any amount in the IRA that would be required to be distributed
to the surviving spouse as beneficiary under section 401(a)(9)(B) is
not distributed within the time period required under section
401(a)(9)(B); or
(2) Any additional amount is contributed to the IRA which is
subject, or deemed to be subject, to the lifetime distribution
requirements of section 401(a)(9)(A).
(c) The result of an election described in paragraph (b) of this A-
5 is that the surviving spouse shall then be considered the IRA owner
for whose benefit the trust is maintained for all purposes under the
Internal Revenue Code (e.g., section 72(t)).
Q-6. How is the benefit determined for purposes of calculating the
required minimum distribution from an IRA?
A-6. For purposes of determining the minimum distribution required
to be made from an IRA in any calendar year, the account balance of the
IRA as of December 31 of the calendar year immediately preceding the
calendar year for which distributions are required to be made is
substituted in A-3 of Sec. 1.401(a)(9)-5 for the account balance of the
employee. Except as provided in A-7 and A-8 of this section, no
adjustments are made for contributions or distributions after that
date.
Q-7. What rules apply in the case of a rollover to an IRA of an
amount distributed by a qualified plan or another IRA?
A-7. If the surviving spouse of an employee rolls over a
distribution from a qualified plan, such surviving spouse may elect to
treat the IRA as the spouse's own IRA in accordance with the provisions
in A-5 of this section. In the event of any other rollover to an IRA of
an amount distributed by a qualified plan or another IRA, the rules in
Sec. 1.401(a)(9)-7 will apply for purposes of determining the account
balance for the receiving IRA and the required minimum distribution
from the receiving IRA. However, because the value of the account
balance is determined as of December 31 of the year preceding the year
for which the required minimum distribution is being determined and not
as of a valuation date in the preceding year, the account balance of
the receiving IRA is only adjusted if the amount is not received in the
calendar year in which the amount rolled over is distributed. In that
case, for purposes of determining the required minimum distribution for
the calendar year in which such amount is actually received, the
account balance of the receiving IRA as of December 31 of the preceding
year must be adjusted by the amount received in accordance with A-2 of
Sec. 1.401(a)(9)-7.
Q-8. What rules apply in the case of a transfer (including a
recharacterization) from one IRA to another?
A-8. (a) General rule. In the case of a trustee-to-trustee transfer
from one IRA to another IRA that is not a distribution and rollover,
the transfer is not treated as a distribution by the transferor IRA for
purposes of section 401(a)(9). Accordingly, the minimum distribution
requirement with respect to the transferor IRA must still be satisfied.
Except as provided in paragraph (b) of this A-8 for
recharacterizations, after the transfer the employee's account balance
and the required minimum distribution under the transferee IRA are
determined in the same manner as an account balance and required
minimum distribution are determined under an IRA receiving a rollover
contribution under A-7 of this section.
(b) Recharacterizations. If an amount is contributed to a Roth IRA
that is a conversion contribution or failed conversion contribution and
that amount (plus net income allocable to that amount) is transferred
to another IRA (transferee IRA) in a subsequent year as a
recharacterized contribution, the recharacterized contribution (plus
allocable net income) must be added to the December 31 account balance
of the transferee IRA for the year in which the conversion or failed
conversion occurred.
Q-9. Is the required minimum distribution from one IRA of an owner
permitted to be distributed from another IRA in order to satisfy
section 401(a)(9)?
A-9. Yes, the required minimum distribution must be calculated
separately for each IRA. The separately calculated amounts may then be
totaled and the total distribution taken from any one or more of the
individual's IRAs under the rules set forth in this A-9. Generally,
only amounts in IRAs that an individual holds as the IRA owner may
[[Page 19026]]
be aggregated. However, amounts in IRAs that an individual holds as a
beneficiary of the same decedent and which are being distributed under
the life expectancy rule in section 401(a)(9)(B)(iii) or (iv) may be
aggregated, but such amounts may not be aggregated with amounts held in
IRAs that the individual holds as the IRA owner or as the beneficiary
of another decedent. Distributions from section 403(b) contracts or
accounts will not satisfy the distribution requirements from IRAs, nor
will distributions from IRAs satisfy the distribution requirements from
section 403(b) contracts or accounts. Distributions from Roth IRAs
(defined in section 408A) will not satisfy the distribution
requirements applicable to IRAs or section 403(b) accounts or contracts
and distributions from IRAs or section 403(b) contracts or accounts
will not satisfy the distribution requirements from Roth IRAs.
Q-10. Is any reporting required by the trustee, custodian, or
issuer of an IRA with respect to the minimum amount that is required to
be distributed from that IRA?
A-10. Yes, the trustee, custodian, or issuer of an IRA is required
to report information with respect to the minimum amount required to be
distributed from the IRA for each calendar year to individuals or
entities, at the time, and in the manner, prescribed by the
Commissioner in revenue rulings, notices, and other guidance published
in the Internal Revenue Bulletin (see Sec. 601.601(d)(2)(ii)(b) of this
chapter) as well as the applicable Federal tax forms and accompanying
instructions.
Q-11. Which amounts distributed from an IRA are taken into account
in determining whether section 401(a)(9) is satisfied?
A-11. (a) General rule. Except as provided in paragraph (b) of this
A-11, all amounts distributed from an IRA are taken into account in
determining whether section 401(a)(9) is satisfied, regardless of
whether the amount is includible in income.
(b) Amounts not taken into account. The following amounts are not
taken into account in determining whether the required minimum amount
with respect to an IRA for a calendar year has been distributed--
(1) Contributions returned pursuant to section 408(d)(4), together
with the income allocable to these contributions;
(2) Contributions returned pursuant to section 408(d)(5);
(3) Corrective distributions of excess simplified employee pension
contributions under section 408(k)(6)(C), together with the income
allocable to these distributions; and
(4) Similar items designated by the Commissioner in revenue
rulings, notices, and other guidance published in the Internal Revenue
Bulletin. See Sec. 601.601(d)(2)(ii)(b) of this chapter.
PART 54--PENSION EXCISE TAXES
Par. 5. The authority for part 54 is amended by adding the
following citation to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Section 54.4974-2 also issued under 26 U.S.C. 4974. * * *
Par. 6. Section after Sec. 54.4974-2 is added to read as follows:
Sec. 54.4974-2 Excise tax on accumulations in qualified retirement
plans.
Q-1. Is any tax imposed on a payee under any qualified retirement
plan or any eligible deferred compensation plan (as defined in section
457(b)) to whom an amount is required to be distributed for a taxable
year if the amount distributed during the taxable year is less than the
required minimum distribution?
A-1. Yes, if the amount distributed to a payee under any qualified
retirement plan or any eligible deferred compensation plan (as defined
in section 457(b)) for a calendar year is less than the required
minimum distribution for such year, an excise tax is imposed on such
payee under section 4974 for the taxable year beginning with or within
the calendar year during which the amount is required to be
distributed. The tax is equal to 50 percent of the amount by which such
required minimum distribution exceeds the actual amount distributed
during the calendar year. Section 4974 provides that this tax shall be
paid by the payee. For purposes of section 4974, the term required
minimum distribution means the minimum distribution amount required to
be distributed pursuant to section 401(a)(9), 403(b)(10), 408(a)(6),
408(b)(3), or 457(d)(2), as the case may be, and the regulations
thereunder. Except as otherwise provided in A-6 of this section, the
required minimum distribution for a calendar year is the required
minimum distribution amount required to be distributed during the
calendar year. A-6 of this section provides a special rule for amounts
required to be distributed by an employee's (or individual's) required
beginning date.
Q-2. For purposes of section 4974, what is a qualified retirement
plan?
A-2. For purposes of section 4974, each of the following is a
qualified retirement plan--
(a) A plan described in section 401(a) which includes a trust
exempt from tax under section 501(a);
(b) An annuity plan described in section 403(a);
(c) An annuity contract, custodial account, or retirement income
account described in section 403(b);
(d) An individual retirement account described in section 408(a)
(including a Roth IRA described in section 408A);
(e) An individual retirement annuity described in section 408(b)
(including a Roth IRA described in section 408A); or
(f) Any other plan, contract, account, or annuity that, at any
time, has been treated as a plan, account, or annuity described in
paragraphs (a) through (e) of this A-2, whether or not such plan,
contract, account, or annuity currently satisfies the applicable
requirements for such treatment.
Q-3. If a payee's interest under a qualified retirement plan is in
the form of an individual account, how is the required minimum
distribution for a given calendar year determined for purposes of
section 4974?
A-3. (a) General rule. If a payee's interest under a qualified
retirement plan is in the form of an individual account and
distribution of such account is not being made under an annuity
contract purchased in accordance with A-4 of Sec. 1.401(a)(9)-6T, the
amount of the required minimum distribution for any calendar year for
purposes of section 4974 is the required minimum distribution amount
required to be distributed for such calendar year in order to satisfy
the minimum distribution requirements in Sec. 1.401(a)(9)-5 as provided
in the following (whichever is applicable)--
(1) Section 401(a)(9) and Secs. 1.401(a)(9)-1 through 1.401(a)(9)-5
and 1.401(a)(9)-7 through 1.401(a)(9)-9 in the case of a plan described
in section 401(a) which includes a trust exempt under section 501(a) or
an annuity plan described in section 403(a);
(2) Section 403(b)(10) and Sec. 1.403(b)-3 (in the case of an
annuity contract, custodial account, or retirement income account
described in section 403(b));
(3) Section 408(a)(6) or (b)(3) and Sec. 1.408-8 (in the case of an
individual retirement account or annuity described in section 408(a) or
(b)); or
(4) Section 457(d) in the case of an eligible deferred compensation
plan (as defined in section 457(b)).
(b) Default provisions. Unless otherwise provided under the
qualified
[[Page 19027]]
retirement plan (or, if applicable, the governing instrument of the
qualified retirement plan), the default provisions in A-4(a) of
Sec. 1.401(a)(9)-3 apply in determining the required minimum
distribution for purposes of section 4974.
(c) Five-year rule. If the 5-year rule in section 401(a)(9)(B)(ii)
applies to the distribution to a payee, no amount is required to be
distributed for any calendar year to satisfy the applicable enumerated
section in paragraph (a) of this A-3 until the calendar year which
contains the date 5 years after the date of the employee's death. For
the calendar year which contains the date 5 years after the employee's
death, the required minimum distribution amount required to be
distributed to satisfy the applicable enumerated section is the payee's
entire remaining interest in the qualified retirement plan.
Q-4. If a payee's interest in a qualified retirement plan is being
distributed in the form of an annuity, how is the amount of the
required minimum distribution determined for purposes of section 4974?
A-4. If a payee's interest in a qualified retirement plan is being
distributed in the form of an annuity (either directly from the plan,
in the case of a defined benefit plan, or under an annuity contract
purchased from an insurance company), the amount of the required
minimum distribution for purposes of section 4974 will be determined as
follows:
(a) Permissible annuity distribution option. A permissible annuity
distribution option is an annuity contract (or, in the case of annuity
distributions from a defined benefit plan, a distribution option) which
specifically provides for distributions which, if made as provided,
would for every calendar year equal or exceed the minimum distribution
amount required to be distributed to satisfy the applicable section
enumerated in paragraph (a) of A-2 of this section for every calendar
year. If the annuity contract (or, in the case of annuity distributions
from a defined benefit plan, a distribution option) under which
distributions to the payee are being made is a permissible annuity
distribution option, the required minimum distribution for a given
calendar year will equal the amount which the annuity contract (or
distribution option) provides is to be distributed for that calendar
year.
(b) Impermissible annuity distribution option. An impermissible
annuity distribution option is an annuity contract (or, in the case of
annuity distributions from a defined benefit plan, a distribution
option) under which distributions to the payee are being made that
specifically provides for distributions which, if made as provided,
would for any calendar year be less than the minimum distribution
amount required to be distributed to satisfy the applicable section
enumerated in paragraph (a) of A-3 of this section. If the annuity
contract (or, in the case of annuity distributions from a defined
benefit plan, the distribution option) under which distributions to the
payee are being made is an impermissible annuity distribution option,
the required minimum distribution for each calendar year will be
determined as follows:
(1) If the qualified retirement plan under which distributions are
being made is a defined benefit plan, the minimum distribution amount
required to be distributed each year will be the amount which would
have been distributed under the plan if the distribution option under
which distributions to the payee were being made was the following
permissible annuity distribution option:
(i) In the case of distributions commencing before the death of the
employee, if there is a designated beneficiary under the impermissible
annuity distribution option for purposes of section 401(a)(9), the
permissible annuity distribution option is the joint and survivor
annuity option under the plan for the lives of the employee and the
designated beneficiary that provides for the greatest level amount
payable to the employee determined on an annual basis. If the plan does
not provide such an option or there is no designated beneficiary under
the impermissible distribution option for purposes of section
401(a)(9), the permissible annuity distribution option is the life
annuity option under the plan payable for the life of the employee in
level amounts with no survivor benefit.
(ii) In the case of distributions commencing after the death of the
employee, if there is a designated beneficiary under the impermissible
annuity distribution option for purposes of section 401(a)(9), the
permissible annuity distribution option is the life annuity option
under the plan payable for the life of the designated beneficiary in
level amounts. If there is no designated beneficiary, the 5-year rule
in section 401(a)(9)(B)(ii) applies. See paragraph (b)(3) of this A-4.
The determination of whether or not there is a designated beneficiary
and the determination of which designated beneficiary's life is to be
used in the case of multiple beneficiaries will be made in accordance
with Sec. 1.401(a)(9)-4 and A-7 of Sec. 1.401(a)(9)-5. If the defined
benefit plan does not provide for distribution in the form of the
applicable permissible distribution option, the required minimum
distribution for each calendar year will be an amount as determined by
the Commissioner.
(2) If the qualified retirement plan under which distributions are
being made is a defined contribution plan and the impermissible annuity
distribution option is an annuity contract purchased from an insurance
company, the minimum distribution amount required to be distributed
each year will be the amount that would have been distributed in the
form of an annuity contract under the permissible annuity distribution
option under the plan determined in accordance with paragraph (b)(1) of
this A-4 for defined benefit plans. If the defined contribution plan
does not provide the applicable permissible annuity distribution
option, the required minimum distribution for each calendar year will
be the amount that would have been distributed under an annuity
described in paragraph (b)(2)(i) or (ii) of this A-4 purchased with the
employee's or individual's account used to purchase the annuity
contract that is the impermissible annuity distribution option.
(i) In the case of distributions commencing before the death of the
employee, if there is a designated beneficiary under the impermissible
annuity distribution option for purposes of section 401(a)(9), the
annuity is a joint and survivor annuity for the lives of the employee
and the designated beneficiary which provides level annual payments and
which would have been a permissible annuity distribution option.
However, the amount of the periodic payment which would have been
payable to the survivor will be the applicable percentage under the
table in A-2(c) of Sec. 1.401(a)(9)-6T of the amount of the periodic
payment which would have been payable to the employee or individual. If
there is no designated beneficiary under the impermissible distribution
option for purposes of section 401(a)(9), the annuity is a life annuity
for the life of the employee with no survivor benefit which provides
level annual payments and which would have been a permissible annuity
distribution option.
(ii) In the case of a distribution commencing after the death of
the employee, if there is a designated beneficiary under the
impermissible annuity distribution option for purposes of section
401(a)(9), the annuity option is a life annuity for the life of the
designated beneficiary which provides
[[Page 19028]]
level annual payments and which would have been a permissible annuity
distribution option. If there is no designated beneficiary, the 5-year
rule in section 401(a)(9)(B)(ii) applies. See paragraph (b)(3) of this
A-4. The amount of the payments under the annuity contract will be
determined using the interest rate and actuarial tables prescribed
under section 7520 determined using the date determined under A-3 of
Sec. 1.401(a)(9)-3 when distributions are required to commence and
using the age of the beneficiary as of the beneficiary's birthday in
the calendar year that contains that date. The determination of whether
or not there is a designated beneficiary and the determination of which
designated beneficiary's life is to be used in the case of multiple
beneficiaries will be made in accordance with Sec. 1.401(a)(9)-4 and A-
7 of Sec. 1.401(a)(9)-5.
(3) If the 5-year rule in section 401(a)(9)(B)(ii) applies to the
distribution to the payee under the contract (or distribution option),
no amount is required to be distributed to satisfy the applicable
enumerated section in paragraph (a) of this A-4 until the calendar year
which contains the date 5 years after the date of the employee's death.
For the calendar year which contains the date 5 years after the
employee's death, the required minimum distribution amount required to
be distributed to satisfy the applicable enumerated section is the
payee's entire remaining interest in the annuity contract (or under the
plan in the case of distributions from a defined benefit plan).
(4) If the plan provides that the required beginning date for
purposes of section 401(a)(9) for all employees is April 1 of the
calendar year following the calendar year in which the employee
attained age 70\1/2\ in accordance with paragraph A-2(e) of
Sec. 1.401(a)(9)-2, the required minimum distribution for each calendar
year for an employee who is not a 5-percent owner for purposes of this
section will be the lesser of the amount determined based on the
required beginning date as set forth in A-2(a) of Sec. 1.401(a)(9)-2 or
the required beginning date under the plan. Thus, for example, if an
employee dies after attaining age 70\1/2\, but before April 1 of the
calendar year following the calendar in which the employee retired, and
there is no designated beneficiary as of September 30 of the year
following the employee's year of death, required minimum distributions
for calendar years after the calendar year containing the employee's
date of death may be based on either the applicable distribution period
provided under either the 5-year rule of A-1 of Sec. 1.401(a)(9)-3 or
the employee's remaining life expectancy as set forth in A-5(c)(3) of
Sec. 1.401(a)(9)-5.
Q-5. If there is any remaining benefit with respect to an employee
(or IRA owner) after any calendar year in which the entire remaining
benefit is required to be distributed under section 401(a)(9), what is
the amount of the required minimum distribution for each calendar year
subsequent to such calendar year?
A-5. If there is any remaining benefit with respect to an employee
(or IRA owner) after the calendar year in which the entire remaining
benefit is required to be distributed, the required minimum
distribution for each calendar year subsequent to such calendar year is
the entire remaining benefit.
Q-6. With respect to which calendar year is the excise tax under
section 4974 imposed in the case in which the amount not distributed is
an amount required to be distributed by April 1 of a calendar year (by
the employee's or individual's required beginning date)?
A-6. In the case in which the amount not paid is an amount required
to be paid by April 1 of a calendar year, such amount is a required
minimum distribution for the previous calendar year, i.e., for the
employee's or the individual's first distribution calendar year.
However, the excise tax under section 4974 is imposed for the calendar
year containing the last day by which the amount is required to be
distributed, i.e., the calendar year containing the employee's or
individual's required beginning date, even though the preceding
calendar year is the calendar year for which the amount is required to
be distributed. There is also a required minimum distribution for the
calendar year which contains the employee's or individual's required
beginning date. Such distribution is also required to be made during
the calendar year which contains the employee's or individual's
required beginning date.
Q-7. Are there any circumstances when the excise tax under section
4974 for a taxable year may be waived?
A-7. (a) Reasonable cause. The tax under section 4974(a) may be
waived if the payee described in section 4974(a) establishes to the
satisfaction of the Commissioner the following--
(1) The shortfall described in section 4974(a) in the amount
distributed in any taxable year was due to reasonable error; and
(2) Reasonable steps are being taken to remedy the shortfall.
(b) Automatic waiver. The tax under section 4974 will be
automatically waived, unless the Commissioner determines otherwise,
if--
(1) The payee described in section 4974(a) is an individual who is
the sole beneficiary and whose required minimum distribution amount for
a calendar year is determined under the life expectancy rule described
in Sec. 1.401(a)(9)-3 A-3 in the case of an employee's or individual's
death before the employee's or individual's required beginning date;
and
(2) The employee's or individual's entire benefit to which that
beneficiary is entitled is distributed by the end of the fifth calendar
year following the calendar year that contains the employee's or
individual's date of death.
PART 602--OMB CONTROL NUMBERS UNDER THE PAPERWORK REDUCTION ACT
Par. 7. The authority citation for part 602 continues to read as
follows:
Authority: 26 U.S.C. 7808.
Par. 8. In Sec. 602.101, paragraph (b) is amended by adding entries
for ``1.401(a)(9)-1,'' ``1.401(a)(9)-3,'' ``1.401(a)(9)-4,'' and
``1.403(b)-3'' to the table to read as follows:
Sec. 602.101 OMB Control numbers.
* * * * *
(b) * * *
------------------------------------------------------------------------
Current OMB
CFR part or section where identified and described control No.
------------------------------------------------------------------------
* * * * *
1.401(a)(9)-1............................................. 1545-1573
* * * * *
1.401(a)(9)-3............................................. 1545-1466
* * * * *
1.401(a)(9)-4............................................. 1545-1573
* * * * *
1.403(b)-3................................................ 1545-0996
* * * * *
------------------------------------------------------------------------
Robert E. Wenzel,
Deputy Commissioner of Internal Revenue.
Approved: March 26, 2002.
Mark Weinberger,
Assistant Secretary of the Treasury.
[FR Doc. 02-8963 Filed 4-16-02; 8:45 am]
BILLING CODE 4830-01-P