[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  

[[Page 18988]]


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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

[[Page 18990]]

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

[[Page 18991]]

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
--------------------------------------------------------------------------------------------------------------------------------------------------------


--------------------------------------------------------------------------------------------------------------------------------------------------------
                   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
--------------------------------------------------------------------------------------------------------------------------------------------------------


--------------------------------------------------------------------------------------------------------------------------------------------------------
                   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
--------------------------------------------------------------------------------------------------------------------------------------------------------


--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                      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
--------------------------------------------------------------------------------------------------------------------------------------------------------


--------------------------------------------------------------------------------------------------------------------------------------------------------
                   Ages                        100        101        102        103        104        105        106        107        108        109
--------------------------------------------------------------------------------------------------------------------------------------------------------
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
--------------------------------------------------------------------------------------------------------------------------------------------------------


----------------------------------------------------------------------------------------------------------------
                  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