45. Commencement of benefits

Statement of Requirement: Code § 401(a)(14); Reg. § 1.411(a)-11(c)(7)

Sample Plan Language:

Unless the participant elects otherwise, distribution of benefits will begin no later than the 60th day after the latest of the close of the plan year in which:

(1) the participant attains age 65 (or normal retirement age, if earlier);

(2) occurs the 10th anniversary of the year in which the participant commenced participation in the plan; or,

(3) the participant terminates service with the employer.

Notwithstanding the foregoing, the failure of a participant and spouse to consent to a distribution while a benefit is immediately distributable, within the meaning of section ___ of the plan, shall be deemed to be an election to defer commencement of payment of any benefit sufficient to satisfy this section.

237 | D e f i n e d C o n t r i b u t i o n P l a n L R M P a c k a g e 0 1 / 2 0 2 4

(Note to reviewer: The blank should be filled in with the section number corresponding to LRM #44.)

(Note to reviewer: Effective for distributions made after December 31, 2023, the dollar limit for immediately distributable amounts was increased from $5,000 to $7,000. See LRM 44 for sample plan language in this regard.)