Section 27-240-VII-7.4 - Distribution RequirementsThe requirements of this Section apply to any distribution of a Participant's Accumulation Account(s). Such distributions will in all cases be made in accordance with a good faith interpretation of Code Section 401(a)(9).
(a) Limits on Settlement Options. Distributions may only be made over one of the following periods (or a combination thereof):i) The life of the Participant,ii) The life of the Participant and a designated Beneficiary, oriii) A period certain not extending beyond the joint and last survivor life expectancy of the Participant and the designated Beneficiary, oriv) Lump sum, subject to provision of applicable Funding Vehicle(s), orv) Any other distribution set forth in the contracts between the Fund Sponsor(s) and Participant and/or the Trustee.Notwithstanding anything contained herein to the contrary, the Plan shall in all events commence distribution of the interest of each Participant in accordance with this section not later than April 1 of the calendar year following the calendar year in which the Participant attains age seventy-two (72) for those Participants who were born on or after July 1, 1949 or age seventy and one-half (70 1/2) for those Participants who were born on or before June 30, 1949, or in the calendar year in which he retires, whichever is later, but in all instances distribution shall occur in accordance with a good faith interpretation of Code Section 401(a)(9), including the minimum distribution incidental death benefit requirements of Treasury Regulation 1.401(a)(9)-2. The life expectancy of a Participant and the Participant's spouse (other than for a life annuity) may be redetermined annually at the Participant's election. If a distribution is required to begin according to Section 7.4(a) and the Participant has not filed a claim by the date that is sixty (60) days before the Participant's required beginning date as required in Code Section 401(a)(9), the Fund Sponsor shall direct payment according to the automatic payout option provided by the applicable Funding Vehicle(s), or, to the extent not so provided, as a lump sum distribution.
(b) Death Distribution Provisions for deaths before January 1, 2022. Upon death of the Participant, the following distribution provisions will take effect: i) If the Participant dies after distribution of his or her vested Accumulation Account(s) has begun, the remaining portion of the Accumulation Account will continue to be distributed at least as rapidly as under the method of distribution being used prior to the participant's death.ii) If the Participant dies before distribution of his or her Accumulation Account(s) begins, the Participant's entire Accumulation Account will be distributed no later than five years after the Participant's death except to the extent that an election is made to receive distributions in accordance with (1) or (2) below: (1) If any portion of the Participant's Accumulation Account(s) is payable to a designated Beneficiary, distributions may be made in substantially equal installments over the life or life expectancy of the designated Beneficiary beginning no later than one year after the Participant's death.(2) If the designated Beneficiary is the Participant's surviving spouse, the date distributions are required to begin in accordance with (1) above must not be later than the date on which the Participant would have attained age 70 1/2 (age seventy-two (72) with respect to a Participant who would have attained age seventy and one-half (70 1/2) after December 31, 2019), and if the spouse dies before payments begin, subsequent distributions will be made as if the spouse had been the Participant.(3) If a distribution is required to begin to a Beneficiary and the Beneficiary has not filed a claim by the date that is sixty (60) days before the date required by Code Section 401(a)(9), the Fund Sponsor shall direct payment according to the automatic payout option provided by the applicable Funding Vehicle(s), or, to the extent not so provided, as a lump sum distribution.(c) Death Distribution Provisions for deaths on or after January 1, 2022. Upon death of the Participant, the following distribution provisions will take effect:(i) If the Participant dies before the distribution of his or her entire account (regardless of whether any distributions had begun before the Participant's death) and the Participant has a designated Beneficiary: (1) The entire Participant Account shall be distributed to the designated Beneficiary by December 31 of the calendar year containing the tenth anniversary of the Participant's death.(2) Notwithstanding paragraph (1), if the designated Beneficiary is an Eligible Designated Beneficiary, then the Eligible Designated Beneficiary may elect for the Participant's Account(s) to be distributed (A) by December 31 of the calendar year containing the tenth (10th) anniversary of the Participant's death, or (B) beginning no later than December 31 of the calendar year immediately following the calendar year in which the Participant died, over the life of the Eligible Designated Beneficiary or over a period not exceeding the life expectancy of the Eligible Designated Beneficiary. If the Eligible Designated Beneficiary is the surviving spouse, payment under item (B) is not required until the later of December 31 of the calendar year immediately following the calendar year in which the Participant died or December 31 of the calendar year in which the Participant would have attained age seventy and one-half (701/2) (age seventy-two (72) with respect to a Participant who would have attained age seventy and one-half (701/2) after December 31, 2019). If the Eligible Designated Beneficiary does not elect a method of distribution as provided above, the Participant's Account(s) shall be distributed in accordance with item (B).(3) Upon either (A) the death of an Eligible Designated Beneficiary before distribution of the Participant's entire account or (B) the attainment of the age of majority for an Eligible Designated Beneficiary who is a minor child under subsection 7.4(b)(iii), paragraph (2) shall no longer apply, and the remainder of the account shall be distributed under paragraph (1).(ii) If the Participant dies before distributions of his or her account begins and the Participant has no designated Beneficiary, the Participant's account under the Plan shall be distributed by December 31 of the calendar year containing the fifth (5th) anniversary of the Participant's death. If the Participant dies after distribution of his or her account begins and the Participant has no designated Beneficiary, any remaining portion of the account shall continue to be distributed at least as rapidly as under the method of distribution in effect at the time of the Participant's death.(iii) For purposes of this subsection, an "Eligible Designated Beneficiary" shall mean designated beneficiary who, as of the date of the death of the Participant, is: (A) the surviving spouse of the Participant;(B) a child of the Participant who has not reached the age of majority;(C) disabled within the meaning of Code Section 72(m)(7);(D) chronically ill within the meaning of Code Section 7702B(c)(2) (except that the requirements of subparagraph (A)(i) thereof shall only be treated as met if there is a certification that, as of such date, the period of inability described in such subparagraph with respect to the individual is an indefinite one which is reasonably expected to be lengthy in nature); or(E) any other individual who is not more than ten (10) years younger than the Participant. Notwithstanding the preceding, a child described in (B) above shall cease to be an Eligible Designated Beneficiary as of the date he or she reaches the age of majority. (d) A Participant or Beneficiary who would have been required to receive required minimum distributions in 2020 (or paid in 2021 for the 2020 calendar year for a Participant with a required beginning date of April 1, 2021) but for the enactment of Code Section 401(a)(9)(I) ("2020 RMDs"), and who would have satisfied that requirement by receiving distributions that are either (1) equal to the 2020 RMDs, or (2) one or more payments (that include the 2020 RMDs) in a series of substantially equal periodic payments made at least annually and expected to last for the life (or life expectancy) of the participant, the joint lives (or joint life expectancies) of the participant and the participant's designated beneficiary, or for a period of at least 10 years (Extended 2020 RMDs), will not receive those distributions for 2020 unless the Participant or Beneficiary elects to receive such distributions. Further, if provided by the Funding Vehicle or contracts, the 2020 RMD will be treated as eligible rollover distributions.
27 Miss. Code. R. 240-VII-7.4