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.)

5.2 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.

5.3 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.

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:

(a) The surviving spouse of the participant,

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

(c) Disabled,

(d) A chronically ill individual, or

(e) 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) of the regulations.

5.6 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.

5.7 Required Beginning Date: Required Beginning Date shall have the meaning as selected by the employer in the Adoption Agreement.

5.8 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. 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)

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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 § 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.)