4.39.603 Distribution of death benefits.
A. Death before required beginning date: if the participant dies before their required beginning date, the participant’s account balance shall be distributed to the participant’s beneficiary in accordance with the following rules:
1. To participant’s surviving spouse: if the participant’s surviving spouse is the participant’s designated beneficiary, distributions must begin on or before the later of the following: (i) the end of the calendar year following the calendar in which the participant died; or (ii) the end of the calendar year in which the participant would have attained age 70 1/2. Distribution may be made in a lump sum payment or in installments pursuant to Section 4.39.601.B that equal or exceed an annual amount determined by dividing the participant’s account balance by the spouse’s remaining life expectancy.
2. To participant’s other designated beneficiary: if the participant has designated a beneficiary who is not their surviving spouse, distributions must begin on or before the end of the calendar year following the calendar year in which the participant died. Distributions may be made in a lump sum payment or in installments pursuant to Section 4.39.601.B that equal or exceed an annual amount determined by dividing the participant’s account balance by the beneficiary’s remaining life expectancy.
3. If no designated beneficiary: if the participant has not designated a beneficiary, the participant’s entire account balance must be distributed by the end of the calendar year which contains the fifth anniversary of the date of the participant’s death.
B. Death on or after their required beginning date: if the participant dies on or after their required beginning date, the participant’s account balance shall be distributed beginning in the calendar year following the calendar year of the participant’s death in accordance with the following rules:
1. To participant’s surviving spouse: if the participant’s surviving spouse is the participant’s designated beneficiary, distributions may be made in a lump sum payment or in installments pursuant to Section 4.39.601.B that equal or exceed an annual amount determined by dividing the participant’s account balance by the longer of (i) the participant’s remaining life expectancy, or (ii) the spouse’s remaining life expectancy.
2. To participant’s designated beneficiary: if the participant has designated a beneficiary who is not their surviving spouse, distributions may be made in a lump sum payment or in installments pursuant to Section 4.39.601.B that equal or exceed an annual amount determined by dividing the participant’s account balance by the longer of (i) the participant’s remaining life, or (ii) the beneficiary’s remaining life expectancy.
3. If no designated beneficiary: if the participant has not designated a beneficiary, distributions may be made in a lump sum payment or in installments pursuant to Section 4.39.601.B that equal or exceed an annual amount determined by dividing the participant’s account by the participant’s remaining life expectancy.
4. All calculations made under this section shall be in accordance with applicable Treasury regulations. (Ord. 7585-NS § 3, 2017)