Section 5. Definitions

5.1 Applicable age.

(a) In the case of an individual who attains age 70 before July 1, 2019, the applicable age is 70 ½.

(b) In the case of an individual who attains age 70 on or after July 1, 2019, the applicable age is 72.

(c) In the case of an individual who attains age 72 after December 31, 2022, and age 73 before January 1, 2033, the applicable age is 73.

(Note to reviewer: Section 107 of the SECURE 2.0 Act of 2022 increases the required minimum distribution age to age 73 starting on January 1, 2023 and increases the age further to age 75 starting on January 1, 2033. That change was not included on the Cumulative List, so plan language is not provided in this regard.)

5. 12 Designated beneficiary. The individual who is designated by the participant (or the participant’s surviving spouse) as the beneficiary of the participant’s interest under the plan and who is the designated beneficiary under Section 401(a)(9) of the Code and Section 1.401(a)(9)-4 of the regulations.

6. 23 Distribution calendar year. A calendar year for which a minimum distribution is required. For distributions beginning before the participant’s death, the first distribution calendar year is the calendar year immediately preceding the calendar year which contains the participant’s required beginning date. For distributions beginning after the participant’s death, the first distribution calendar year is the calendar year in which distributions are required to begin under section 2.2. The required minimum distribution for the participant’s first distribution calendar year will be made on or before the participant’s required beginning date. The required minimum distribution for other distribution calendar years, including the required minimum distribution for the distribution calendar year in which the participant’s required beginning date occurs, will be made on or before December 31 of that distribution calendar year.

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5.3 Life expectancy. Life expectancy as computed by use of the Single Life Table in § 1.401(a)(9)-9, Q&A-1, of the regulations.

5.4 Eligible designated beneficiary. An eligible designated beneficiary is the individual designated by the participant (or the participant’s surviving spouse) and who will receive the participant’s interest under the plan and who is:

(f) The surviving spouse of the participant,

(g) A child of the participant who has not reached majority,

(h) Disabled,

(i) A chronically ill individual, or

(j) An individual not described above who is not more than 10 years younger than the participant.

(Note to reviewer: Rules for determining whether an individual is an eligible designated beneficiary are determined under § 401(a)(9)(E) and (H) and applicable regulations thereunder.)

5.5 Life expectancy. Life expectancy as computed by use of the Single Life Table in Section 1.401(a)(9)-9(b) , Q&A-1, of the regulations.

5. 46 Participant’s account balance. The account balance as of the last valuation date in the calendar year immediately preceding the distribution calendar year (valuation calendar year) increased by the amount of any contributions made and allocated or forfeitures allocated to the account as of dates in the valuation calendar year after the valuation date and decreased by distributions made in the valuation calendar year after the valuation date. The account balance for the valuation calendar year includes any amounts rolled over or transferred to the plan either in the valuation calendar year or in the distribution calendar year if distributed or transferred in the valuation calendar year.

6. 57 Required Beginning Date: Required Beginning Date shall have the meaning

as selected by the employer in the Adoption Agreement. One of the following, as selected by the employer in the adoption agreement.

(1) The required beginning date of a participant is April 1 of the calendar year following the calendar year in which the participant attains the Applicable Age (as defined in section _____ of the plan document).

age 70½.

(2b) The required beginning date of a participant is April 1 of the calendar year following the calendar year in which the participant attains age 70½,, except that benefit

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distributions to a participant (other than a 5-percent owner) with respect to benefits accrued after the later of the adoption or effective date of an amendment to the plan that implements the changes to the required beginning date of this paragraph must commence by April 1 of the calendar year following the later of the calendar year in which the participant attains age 70½ or the calendar year in which the participant retires.

(3c) The required beginning date of a participant is April 1 of the calendar year following the later of the calendar year in which the participant attains age 70½ or the calendar year in which the participant retires, except that benefit distributions to a 5- percent owner must commence by April 1 of the calendar year following the calendar year in which the participant attains age 70½.the Applicable Age

(ad) If elected by the employer in the adoption agreement, any participant (other than a 5-percent owner) attaining age 70½ in years after 1995 may elect by April 1 of the calendar year following the calendar year in which the participant attained age 70½ (or by December 31, 1997 in the case of a participant attaining age 70½ in 1996), to defer distributions until April 1 of the calendar year following the calendar year in which the participant retires. If no such election is made, the participant will begin receiving distributions by April 1 of the calendar year following the year in which the participant attained age 70½.

(b) If elected by the employer in the adoption agreement, any participant (other than a 5-percent owner) attaining age 70½ in years prior to 1997 may elect to stop distributions and recommence by April 1 of the calendar year following the year in which the participant retires. To satisfy the Joint and Survivor Annuity Requirements described in Article _____, the requirements in Notice 97-75, Q&A-8, must be satisfied for any participant who elects to stop distributions. There is either (as elected by the employer in the adoption agreement)

(i) a new annuity starting date upon recommencement, or

(ii) no new annuity starting date upon recommencement.

5. 68 5-percent owner. A participant is treated as a 5-percent owner for purposes of this section 5 if such participant is a 5-percent owner as defined in section 416 of the Code at any time during the plan year ending with or within the calendar year in which such owner attains age 70½.

Once distributions have begun to a 5-percent owner under this section 5, they must continue to be distributed, even if the participant ceases to be a 5-percent owner in a subsequent year.

Section 6. TEFRA Section 242(b)(2) Elections

6.1. Notwithstanding the other requirements of this article and subject to the

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requirements of Article _____, Joint and Survivor Annuity Requirements, distribution on behalf of any employee, including a 5-percent owner, who has made a designation under § 242(b)(2) of the Tax Equity and Fiscal Responsibility Act (a “section 242(b)(2) election”) may be made in accordance with all of the following requirements (regardless of when such distribution commences):

(a) The distribution by the plan is one which would not have disqualified such plan under § 401(a)(9) of the Internal Revenue Code as in effect prior to amendment by the Deficit Reduction Act of 1984.

(b) The distribution is in accordance with a method of distribution designated by the employee whose interest in the plan is being distributed or, if the employee is deceased, by a beneficiary of such employee.

(c) Such designation was in writing, was signed by the employee or the beneficiary, and was made before January 1, 1984.

(d) The employee had accrued a benefit under the plan as of December 31, 1983.

(e) The method of distribution designated by the employeeemployee, or the beneficiary specifies the time at which distribution will commence, the period over which distributions will be made, and in the case of any distribution upon the employee's death, the beneficiaries of the employee listed in order of priority.

6.2. A distribution upon death will not be covered by this transitional rule unless the information in the designation contains the required information described above with respect to the distributions to be made upon the death of the employee.

6.3. For any distribution which commences before January 1, 1984, but continues after December 31, 1983, the employee, or the beneficiary, to whom such distribution is being made, will be presumed to have designated the method of distribution under which the distribution is being made if the method of distribution was specified in writing and the distribution satisfies the requirements in subsections 6.1(a) and (e).

6.4. If a designation is revoked, any subsequent distribution must satisfy the requirements of § 401(a)(9) of the Code and the regulations thereunder. If a designation is revoked subsequent to the date distributions are required to begin, 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 would have been required to have been distributed to satisfy § 401(a)(9) of the Code and the regulations thereunder, but for the section 242(b)(2) election. For calendar years beginning after December 31, 1988, such distributions must meet the minimum distribution incidental benefit requirements. Any changes in the designation will be considered to be a revocation of the

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designation. However, the mere substitution or addition of another beneficiary (one not named in the designation) under the designation will not be considered to be a revocation of the designation, so long as such substitution or addition does not alter the period over which distributions are to be made under the designation, directly or indirectly (for example, by altering the relevant measuring life).

6.5. In the case in which an amount is transferred or rolled over from one plan to another plan, the rules in § 1.401(a)(9)-8, Q&A-14 and Q&A-15, shall apply.

Section 6. 2020 Required Minimum Distributions

6.1 Notwithstanding section ______ of the plan, 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 section 401(a)(9)(I) of the Code (“2020 required minimum distributions”), and who would have satisfied that requirement by receiving distributions that are either (1) equal to the 2020 required minimum distributions, or (2) one or more payments (that include the 2020 required minimum distributions) 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 required minimum distributions”), will receive those distributions determined in accordance with the option chosen by the employer in the adoption agreement. Notwithstanding the option chosen by the employer in the adoption agreement, a participant or beneficiary will be given an opportunity to make an election as to whether or not to receive those distributions.

6.2 In addition, notwithstanding section _____ of the plan, and solely for purposes of applying the direct rollover provisions of the plan, certain additional distributions in 2020, as chosen by the employer in the adoption agreement, will be treated as eligible rollover distributions.

6.3 If no election is made by the employer in the adoption agreement, a direct rollover will be offered only for distributions that would be eligible rollover distributions in the absence of section 401(a)(9)(I) of the Code.

(Note to reviewer: For purposes of Section 6 above, the first blank should contain the section of the plan corresponding to the preceding sections of this LRM # 49 (and the section of the plan dealing with other distributions, if applicable) and the second blank should contain the section of the plan corresponding to LRM # 51.)

(Note to reviewer: For purposes of the sample plan language in Section 6 above, if plan language automatically suspends a distribution of amounts equal to the 2020 required minimum distribution to a participant or beneficiary pursuant to

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§ 401(a)(9)(I), then a plan amendment to eliminate the right to defer that distribution would also violate § 411(d)(6)(B). By contrast, an employer will not have eliminated an optional form of benefit in violation of § 411(d)(6)(B) merely because the plan’s default for whether a distribution occurs in the absence of a participant’s or beneficiary’s election is different than the default for whether a distribution occurs in the absence of a plan amendment.)

Sample Adoption Agreement Language

(Check and complete sections 1 and 2 below if you wish to modify the rules in sections 2.2 and 4.2 of Article _____ of the plan.)