Section 7. Safe harbor rules.

7.1. This section shall apply to a participant in a profit-sharing plan, and to any distribution from or under a separate account attributable solely to accumulated deductible employee contributions, as defined in section 72(o)(5)(B) of the Code, and maintained on behalf of a participant in a money purchase pension plan, (including a target benefit plan) if the following conditions are satisfied: (1) the participant does not or cannot elect payments in the form of a life annuity; and (2) on the death of a participant, the participant's vested account balance will be paid to the participant's surviving spouse, but if there is no surviving spouse, or if the surviving spouse has consented in a manner conforming to a qualified election, then to the participant's designated beneficiary. The surviving spouse may elect to have distribution of the vested account balance commence within the 90-day period following the date of the participant's death. The account balance shall be adjusted for gains or losses occurring after the participant's death in accordance with the provisions of the plan governing the adjustment of account balances for other types of distributions. This section 7 shall not apply with respect to a participant in a profit-sharing plan if the plan is a direct or indirect transferee of a defined benefit plan, money purchase plan, or target benefit plan, or a stock bonus or profit-sharing plan which is either subject to the survivor annuity requirements of sections 401(a)(11) and 417 of the Code, or offsets benefits under a plan subject to these requirements. If this section 7 applies, then the provisions of this article, other than section 8, shall be inoperative.

7.2. The participant may waive the spousal death benefit described in this section at any time provided that no such waiver shall be effective unless it satisfies the conditions of section 5.3 (other than the notification requirement referred to therein) that would

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apply to the participant's waiver of the qualified preretirement survivor annuity.

7.3 For purposes of this section 7, vested account balance shall mean, in the case of a money purchase pension plan or a target benefit plan, the participant's separate account balance attributable solely to accumulated deductible employee contributions within the meaning of section 72(o)(5)(B) of the Code. In the case of a profit-sharing plan, vested account balance shall have the same meaning as provided in section 5.7.

(Note to reviewer: Profit-sharing plans satisfying all of the requirements of LRM section 7.1 for a participant such that the plan is not required to provide a qualified joint and survivor annuity for the participant, but that do provide such annuity (even if the annuity is the normal form), may replace the qualified joint and survivor annuity with payment in a single-sum distribution form that is otherwise identical to such annuity in accordance with the requirements under Reg. § 1.411(d)-4 Q&A 2(e).)