Td 8987

Wednesday,
April 17, 2002

Part II

Department of the
Treasury
Internal Revenue Service
26 CFR Parts 1, 54, and 602
Required Distributions From Retirement
Plans; Final Rule

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Federal Register / Vol. 67, No. 74 / Wednesday, April 17, 2002 / Rules and Regulations

DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1, 54, and 602
[TD 8987]
RIN 1545–AY69, 1545–AY70

Required Distributions From
Retirement Plans
AGENCY: Internal Revenue Service (IRS),
Treasury.
ACTION: Final and temporary
regulations.
SUMMARY: This document contains final
and temporary regulations relating to
required minimum distributions from
qualified plans, individual retirement
plans, deferred compensation plans
under section 457, and section 403(b)
annuity contracts, custodial accounts,
and retirement income accounts. These
regulations will provide the public with
guidance necessary to comply with the
law and will affect administrators of,
participants in, and beneficiaries of
qualified plans; institutions that sponsor
and individuals who administer
individual retirement plans, individuals
who use individual retirement plans for
retirement income, and beneficiaries of
individual retirement plans; and
employees for whom amounts are
contributed to section 403(b) annuity
contracts, custodial accounts, or
retirement income accounts and
beneficiaries of such contracts and
accounts. The text of the temporary
regulations also serves as the text of the
proposed regulations set forth in the
notice of proposed rulemaking on this
subject in the Proposed Rules section of
the Federal Register.
EFFECTIVE DATE: These regulations are
effective January 1, 2003.
FOR FURTHER INFORMATION CONTACT:
Cathy A. Vohs, 202–622–6090 (Not a
toll free number).
SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act
The collections of information
contained in these final regulations have
been reviewed and approved by the
Office of Management and Budget in
accordance with the Paperwork
Reduction Act (44 U.S.C. 3507) under
control number 1545–0996, in
conjunction with the notice of proposed
rulemaking published on July 27, 1987,
52 FR 28070, REG-EE–113–82, Required
Distributions From Qualified Plans and
Individual Retirement Plans, under
control number 1545–1466 for ThirdParty Disclosure Requirements in IRS
Regulations, and control number 1545–

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1573, in conjunction with the notice of
proposed rulemaking published on
December 30, 1997, 62 FR 67780, REG–
209463–82, Required Distributions from
Qualified Plans and Individual
Retirement Plans. Responses to the
collections of information under control
numbers 1545–0996 and 1545–1466 are
mandatory. Responses to the collection
of information under control number
1545–1573 are required to obtain the
benefit of a trust being treated as a
designated beneficiary under a
retirement plan.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless the collection of information
displays a valid control number
assigned by the Office of Management
and Budget.
The estimated annual burden per
respondent under control number 1545–
0996 is 1 hour.
The estimated annual burden per
respondent under control number 1545–
1466 is 9 minutes.
The estimated annual burden per
respondent under control number 1545–
1573 is 20 minutes.
Comments concerning the accuracy of
this burden estimate and suggestions for
reducing this burden should be sent to
the Internal Revenue Service, Attn: IRS
Reports Clearance Officer,
W:CAR:MP:FP:S Washington, DC 20224,
and to the Office of Management and
Budget, Attn: Desk Officer for the
Department of the Treasury, Office of
Information and Regulatory Affairs,
Washington, DC 20503.
Books or records relating to this
collection of information must be
retained as long as their contents may
become material in the administration
of any internal revenue law. Generally,
tax returns and tax return information
are confidential, as required by 26
U.S.C. 6103.
Background
This document contains amendments
to the Income Tax Regulations (26 CFR
Part 1) and to the Pension Excise Tax
Regulations (26 CFR Part 54) under
sections 401, 403, 408, and 4974 of the
Internal Revenue Code of 1986 (Code).
These amendments conform the
regulations to section 634 of the
Economic Growth and Tax Relief
Reconciliation Act of 2001 (EGTRRA)
(115 Stat. 117), section 1404 of the
Small Business Job Protection Act of
1996 (SBJPA) (110 Stat. 1791), sections
1121 and 1852 of the Tax Reform Act of
1986 (TRA of 1986) (100 Stat. 2464 and
2864), sections 521 and 713 of the Tax
Reform Act of 1984 (TRA of 1984) (98
Stat. 865 and 955), and sections 242 and

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243 of the Tax Equity and Fiscal
Responsibility Act of 1982 (TEFRA) (96
Stat. 521). The regulations provide
guidance on the minimum distribution
requirements under section 401(a)(9) for
plans qualified under section 401(a) and
for other arrangements that incorporate
the section 401(a)(9) rules by reference.
The section 401(a)(9) rules are
incorporated by reference in section
408(a)(6) and (b)(3) for individual
retirement accounts and annuities
(IRAs) (including Roth IRAs, except as
provided in section 408A(c)(5)), section
403(b)(10) for section 403(b) annuity
contracts, and section 457(d) for eligible
deferred compensation plans.
For purposes of this discussion of the
background of the regulations in this
preamble, as well as the explanation of
provisions below, whenever the term
employee is used, it is intended to
include not only an employee but also
an IRA owner.
Section 401(a)(9) provides rules for
distributions during the life of the
employee in section 401(a)(9)(A) and
rules for distributions after the death of
the employee in section 401(a)(9)(B).
Section 401(a)(9)(A)(ii) provides that the
entire interest of an employee in a
qualified plan must be distributed,
beginning not later than the employee’s
required beginning date, in accordance
with regulations, over the life of the
employee or over the lives of the
employee and a designated beneficiary
(or over a period not extending beyond
the life expectancy of the employee and
a designated beneficiary).
Section 401(a)(9)(C) defines required
beginning date for employees (other
than 5-percent owners and IRA owners)
as April 1 of the calendar year following
the later of the calendar year in which
the employee attains age 701⁄2 or the
calendar year in which the employee
retires. For 5-percent owners and IRA
owners, the required beginning date is
April 1 of the calendar year following
the calendar year in which the
employee attains age 701⁄2, even if the
employee has not retired.
Section 401(a)(9)(D) provides that
(except in the case of a life annuity) the
life expectancy of an employee and the
employee’s spouse that is used to
determine the period over which
payments must be made may be
redetermined, but not more frequently
than annually.
Section 401(a)(9)(E) provides that the
term designated beneficiary means any
individual designated as a beneficiary
by the employee.
Section 401(a)(9)(G) provides that any
distribution required to satisfy the
incidental death benefit requirement of

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section 401(a) is a required minimum
distribution.
Section 401(a)(9)(B)(i) provides that, if
the employee dies after distributions
have begun, the employee’s interest
must be distributed at least as rapidly as
under the method used by the
employee.
Section 401(a)(9)(B)(ii) and (iii)
provides that, if the employee dies
before required minimum distributions
have begun, the employee’s interest
must be either: distributed (in
accordance with regulations) over the
life or life expectancy of the designated
beneficiary with the distributions
beginning no later than 1 year after the
date of the employee’s death, or
distributed within 5 years after the
death of the employee. However, under
section 401(a)(9)(B)(iv), a surviving
spouse may wait until the date the
employee would have attained age 701⁄2
to begin taking required minimum
distributions.
Comprehensive proposed regulations
under section 401(a)(9) were previously
published in the Federal Register on
January 17, 2001 (REG–130477–00/
REG–130481–00; 66 FR 3928) and July
27, 1987 (EE–113–82; 52 FR 28070). The
proposed regulations published in 2001
substantially simplified the rules for
determining required minimum
distributions for separate accounts
provided in the 1987 proposed
regulations. The public reaction to this
simplification was very favorable.
Consequently, these final regulations
adopt the simplified rules in the 2001
proposed regulations for separate
accounts, with the modifications
described below in the Explanation of
Provisions. These regulations continue
to incorporate, with some modifications,
applicable previously issued guidance
(i.e., Notice 83–23 (1983–2 C.B. 418),
Notice 88–38 (1988–1 C.B. 524), Notice
96–67 (1996–2 C. B. 235), and Notice
97–75 (1997–2 C.B. 337)). To the extent
not modified or superceded by these
regulations, the guidance in Notice 83–
23 and Notice 97–75 remains in effect.
For example, if an employer uses the
same required beginning date for all
employees regardless of whether the
employee has retired by age 701⁄2,
during the period before an employee
retires, the employee may determine the
portion of any distribution that is
eligible for rollover using the statutory
definition of required beginning date.
With respect to annuity payments, the
2001 proposed regulations retained the
basic structure of the 1987 proposed
regulation. The preamble to the 2001
proposed regulations indicated that the
IRS and Treasury were continuing to
study these rules and specifically

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requested updated comments on current
practices and issues relating to required
minimum distributions from annuity
contracts. Commentators provided
information on the variety of annuity
contracts being developed and available
as insurance company products for
purchase with separate accounts. In
response to the comments received,
temporary regulations under
§ 1.401(a)(9)–6T significantly expand
the situations in which annuity
payments under annuity contracts
purchased with an employee’s benefit
may provide for increasing payments.
These regulations are being issued in
proposed (REG–108697–02) and
temporary form rather than final form in
order to give taxpayers an opportunity
to comment on these changes.
Explanation of Provisions
Uniform Lifetime Table
These final regulations retain the
simplifications to the minimum
distribution rules for separate accounts
provided in the 2001 proposed
regulations, including the calculation of
the required minimum distribution
during the individual’s lifetime using a
uniform table. The basic calculation for
individual accounts provides that the
required minimum distribution is
determined by dividing the account
balance by the distribution period. For
lifetime required minimum
distributions, there is a uniform
distribution period for almost all
employees of the same age. The uniform
lifetime distribution period table is
based on the joint life and last survivor
expectancy of an individual and a
hypothetical beneficiary 10 years
younger. However, if the employee’s
sole beneficiary is the employee’s
spouse and the spouse is more than 10
years younger than the employee, a
longer distribution period measured by
the joint life and last survivor life
expectancy of the employee and spouse
is permitted to be used.
For years after the year of the
employee’s death, the distribution
period is generally the remaining life
expectancy of the designated
beneficiary. The beneficiary’s remaining
life expectancy is calculated using the
age of the beneficiary in the year
following the year of the employee’s
death, reduced by one for each
subsequent year. If the employee’s
spouse is the employee’s sole
beneficiary, the distribution period
during the spouse’s life is the spouse’s
single life expectancy. For years after
the year of the spouse’s death, the
distribution period is the spouse’s life
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death, reduced by one for each
subsequent year. If there is no
designated beneficiary, the distribution
period is the employee’s life expectancy
calculated in the year of death, reduced
by one for each subsequent year.
New Mortality Tables
The 2001 proposed regulations
provided that the life expectancies for
purposes of section 401(a)(9) would be
determined using the expected return
multiples set forth in the regulations
under section 72 that are used for other
purposes under the Code. These tables,
based upon the experience reflected in
the 1983 individual annuity mortality
table (without load), were adopted for
purposes of section 72 in 1986 and had
been used in both the 1987 proposed
regulations and the 2001 proposed
regulations under section 401(a)(9).
Section 634 of EGTRRA instructed the
Secretary of Treasury to modify the life
expectancy tables used for purposes of
the minimum distribution rules to
reflect current life expectancy. In
accordance with that instruction, the
final regulations adopt new tables of life
expectancies to be used for determining
required minimum distributions.
The new tables were derived by
starting with the basic 2000 individual
annuity mortality table and projecting
mortality improvement for the period
2000 through 2003 using the assumed
mortality improvement factors that were
adopted in developing the Annuity 2000
mortality table. The resulting mortality
rates were blended using a fixed 50%
male 50% female blend. The uniform
lifetime table provided in these final
regulations has also been adjusted to
reflect these new mortality tables.
These new tables also may be used to
determine an employee’s (or IRA
owner’s) life expectancy, or the joint life
and last survivor expectancy of an
employee (or IRA owner) and
designated beneficiary, for purposes of
calculating the amount of substantially
equal periodic payments under section
72(t)(2)(A)(iv) when applying a method
permitted under A–12 of Notice 89–25
(1989–1 C.B. 662, 666). One of these
methods allows use of the methodology
underlying the minimum distribution
calculations for separate accounts in
which the account balance in the prior
year is divided by life expectancy or
joint life and last survivor expectancy.
Under this method, the payments are
not equal but are treated as substantially
equal if the life expectancy is
determined in a consistent manner. A
series of substantially equal periodic
payments under section 72(t)(2)(A)(iv)
determined under this methodology will
not be considered to have been modified

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merely because the new tables are used
in the future to determine the annual
periodic payments rather than the tables
in the regulations under section 72.
Determination of the Designated
Beneficiary
The 2001 proposed regulations
provided that, generally, the designated
beneficiary is determined as of the end
of the year following the year of the
employee’s death. Thus, any beneficiary
eliminated by distribution of the
beneficiary’s benefit or through
disclaimer during the period between
the employee’s death and the end of the
year following the year of death is
disregarded in determining the
employee’s designated beneficiary for
purposes of calculating required
minimum distributions. If, as of the end
of the year following the year of the
employee’s death, the employee has
more than one designated beneficiary
and the account or benefit has not been
divided into separate accounts or shares
for each beneficiary, the beneficiary
with the shortest life expectancy is the
designated beneficiary. Further, if a
person other than an individual is a
beneficiary as of that date, the employee
is treated as not having a beneficiary
(except as provided below with respect
to trusts).
Commentators applauded the basic
principle of the approach in the 2001
proposed regulations but suggested that
the designated beneficiary
determination should be made before
the end of the year following the year of
death so that there will be adequate time
to calculate and distribute the required
minimum amount between the date the
beneficiary determination is finalized
and the end of the year following the
year of the employee’s death (i.e., the
date that required minimum
distributions to nonspouse designated
beneficiaries must commence). In
response to these comments, the date for
determining the designated beneficiary
has been changed to September 30 of
the year following the year of the
employee’s death. In response to
comments, these final regulations clarify
that in order for a beneficiary to
disclaim entitlement to a benefit for
purposes of section 401(a)(9), the
disclaimer must satisfy section 2518.
Finally, the final regulations clarify that
if a designated beneficiary dies during
the period between the employee’s date
of death and September 30 of the year
following the year of the employee’s
death, the individual continues to be
treated as the designated beneficiary for
purposes of determining the distribution
period rather than the successor
beneficiary.

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Some commentators requested that
final regulations provide that, if the
employee’s estate was named as the
beneficiary in the beneficiary
designation or the employee’s estate
became beneficiary by operation of law,
the beneficiary of the estate or the
beneficiary of the IRA named under the
employee’s will could replace the estate
as beneficiary by September 30 of the
year following the year of death. This
change is not being adopted in these
final regulations. The period between
death and the beneficiary determination
date is a period during which
beneficiaries can be eliminated but not
replaced with a beneficiary not
designated under the plan as of the date
of death. In order for an individual to
be a designated beneficiary, any
beneficiary must be designated under
the plan or named by the employee as
of the date of death.
These regulations retain the rule in
the proposed regulations that, in
determining an employee’s beneficiaries
for purposes of applying the multiple
beneficiary rule or determining if the
employee’s spouse is the employee’s
sole beneficiary, all beneficiaries of the
employee’s interest in the plan,
including contingent beneficiaries, are
taken into account. The regulations also
retain the exception to this rule under
which, if a beneficiary (subsequent
beneficiary) is entitled to any portion of
an employee’s benefit only if another
beneficiary dies before the entire benefit
to which that other beneficiary is
entitled has been distributed by the
plan, the subsequent beneficiary will
not be considered a beneficiary.
However, these regulations clarify that
the exception from the multiple
beneficiary rules for death contingencies
only applies to a person who could be
entitled to a portion of the employee’s
benefit by becoming the successor to the
interest of one of the employee’s
beneficiaries after that beneficiary’s
death. The regulations provide that this
rule does not apply to a person who has
any right (including a contingent right)
to an employee’s benefit beyond being
a mere potential successor to the
interest of one of the employee’s
beneficiaries upon that beneficiary’s
death. Thus, for example, if one
beneficiary has a right to any income on
an employee’s individual account
during that beneficiary’s life and
another beneficiary has a right to the
principal but only after the death of the
income beneficiary (with any portion of
the principal distributed during the life
of the income beneficiary to be held in
trust until that beneficiary’s death), both
beneficiaries must be taken into account

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in determining the beneficiary with the
shortest life expectancy and whether
only individuals are beneficiaries.
Default Rule for Post-Death
Distributions
These regulations, as did the 2001
proposed regulations, provide that, if an
employee dies before the employee’s
required beginning date and the
employee has a designated beneficiary,
then the life expectancy rule in section
401(a)(9)(B)(iii) (rather than the 5-year
rule in section 401(a)(9)(B)(ii)) is the
default distribution rule. Thus, absent a
plan provision or election of the 5-year
rule, the life expectancy rule applies in
all cases in which the employee has a
designated beneficiary, and the 5-year
rule applies if the employee does not
have a designated beneficiary. This is a
change from the position in the 1987
proposed regulations that provided the
5-year rule as the default unless the
spouse was the sole beneficiary.
Commentators pointed out that, as a
result of the default rule under the 1987
regulations, some beneficiaries did not
commence distributions under the life
expectancy rules. In response to those
comments, these final regulations
provide a transition rule that permits
beneficiaries subject to the 5-year rule
under the 1987 proposed regulations to
switch to the life expectancy rule,
provided that all amounts that would
have been required to be distributed
under an application of the life
expectancy rule are distributed by the
earlier of December 31, 2003 or the end
of the 5-year period following the year
of the employee’s death.
Temporary Rules for Defined Benefit
Plans and Annuity Contracts
These temporary regulations provide
a number of changes to the annuity
rules provided in the 2001 proposed
regulations including changes designed
to make the rules more consistent with
the rules for individual accounts and
reflect new product designs. In order to
allow taxpayers to comment on these
changes, the section of the regulations
governing defined benefit plans and
annuities is being issued as temporary
and proposed regulations rather than
final regulations.
In response to comments, the
following changes are being made. First,
annuity payments are permitted to be
provided for a period certain that is as
long as the period under the uniform
lifetime table for the employee’s age in
the year in which the annuity starting
date occurs, regardless of who is the
employee’s designated beneficiary.
Further, the period does not change
upon the death of the employee even if

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the remaining period certain is longer or
shorter than the beneficiary’s single life
expectancy. The same rule applies if the
annuity also includes a life annuity or
a joint and survivor annuity. If the
employee’s sole designated beneficiary
is the employee’s spouse, if the spouse
is more than 10 years younger than the
employee, and if the annuity is only for
a period certain and does not have a life
contingent element, the period certain
can be as long as the joint life and last
survivor expectancy of the employee
and the employee’s spouse.
These temporary regulations retain
the rules in the 2001 proposed
regulations interpreting the minimum
distribution incidental benefit
requirement. Under these rules, if the
survivor of a joint and survivor annuity
is not the employee’s spouse and if the
survivor annuitant is more than 10 years
younger than the employee, then the
survivor portion must be less than 100%
of the employee’s benefit. In such a
case, the survivor annuity must be
reduced so that it does not exceed the
employee’s benefit multiplied by the
percentage provided in the table in the
regulations. However, the regulations
clarify that if the joint and survivor
annuity also has a period certain, the
reduction in survivor annuity is only
required after expiration of the period
certain.
Further, in response to comments, the
temporary regulations make a number of
changes that expand the situations in
which increasing annuity payments are
permitted. The additional situations are
generally only available to annuities
purchased from insurance companies.
Under these temporary regulations, an
annuity purchased from an insurance
company can increase annually by a
constant percentage, provided that the
initial payment is sufficiently large that
the total expected payments,
determined without regard to these
increases, exceed the account value
being annuitized. This minimum
payment requirement, together with the
adverse economic interests of the
insurer and the annuity purchaser,
effectively limits the constant
percentage increase under an annuity to
the assumed interest rate used in pricing
the annuity.
These temporary regulations also
provide explicit rules relating to the
payments of dividends under
participating annuity contracts. Under
the temporary regulations, a variation in
the amount of the annuity payment
(referred to as a dividend or other
payment resulting from favorable
actuarial experience) can be made
provided that: (1) The initial payment
meets the minimum threshold described

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above, (2) actuarial experience is
measured at least annually, and (3) the
resulting dividend payment or other
payment is either paid no later than the
year following the year for which the
actuarial experience is measured or is
payable in the same form as the
payment of the annuity over the
remaining period of the annuity. These
requirements are intended to preclude
backloading of the distribution stream
through the use of conservative pricing
assumptions where actuarial gains with
respect to those assumptions are
deferred and paid at a later date. The
definition of dividend or other payment
resulting from actuarial gain is broad
enough to encompass the contractual
adjustment provided for in a variable
annuity. Accordingly, the rules that
permitted payments that vary with the
investment performance of underlying
assets has been replaced with this more
general construct.
The temporary regulations allow full
and partial withdrawals from purchased
annuities in certain circumstances. The
restrictions on these withdrawals are
intended to preclude the use of a
withdrawal or cash-out feature as a
mechanism to distribute deferred
actuarial gains. In the case of a full
withdrawal (including a death benefit),
the distribution must not exceed the
expected future payments under the
contract, taking into account the
annuitants who are still alive and any
remaining period certain, but without
regard to any future increases. In the
case of a partial withdrawal, the full
withdrawal under the terms of the
contract must satisfy the preceding
sentence and, after the partial
withdrawal, all future annuity payments
must be reduced proportionately based
on the ratio of the partial withdrawal to
the maximum withdrawal under the
terms of the contract.
As discussed above, these permitted
increases are only available for
insurance company products and not a
distribution stream provided from a
section 401(a) defined benefit trust. In
addition, these temporary regulations do
not permit annuity payments that vary
with the value of the underlying assets
of the plan to be provided by a defined
benefit plan with a section 401(a)
qualified trust. Further, these
regulations clarify that an annuity under
a defined benefit plan with a section
401(a) qualified trust is permitted to
provide that annuity payments may
increase with an annual percentage
increase that does not exceed the
percentage increase in a cost-of-living
index that is based on prices of all items
and issued by the Bureau of Labor
Statistics. Finally, the temporary

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regulations clarify that increases in
these annuity payments to reflect
benefit increases must be pursuant to a
plan amendment increasing benefits.
The preamble to the 2001 proposed
regulations indicated that the IRS and
Treasury were continuing to consider
whether retention of the rule allowing
an employee’s minimum required
distributions under a defined benefit
plan to be determined using the rules
for individual accounts was appropriate
for defined benefit plans. Few
comments specifically requested
retention of this rule. As a result, the
IRS and Treasury have concluded that
this rule has little application outside of
being used to determine the portion of
a lump sum distribution of an
employee’s vested accrued benefit that
is eligible for rollover. Accordingly, this
rule has not been retained in these
temporary regulations except for use in
determining the amount that is eligible
for rollover when a defined benefit plan
pays an employee’s entire vested
accrued benefit in a lump sum.
However, in response to comments,
these temporary regulations permit a
plan to treat the amount of a year of
annuity payments that would have been
payable under the normal form as the
minimum required distribution for a
year in the case of a lump sum payment.
Finally, in response to a comment,
these temporary regulations clarify that
actuarial increases to benefits under a
defined benefit plan required under
section 401(a)(9)(C)(iii), as added by
SBJPA, need not be provided for any
period before January 1, 1997.
Incidental Benefit Requirement
These final and temporary regulations
provide rules relating to the interaction
of the section 401(a)(9) requirements
and the incidental benefit requirement
of § 1.401–1(b)(1)(i). Under these rules,
generally if distributions with respect to
an employee’s benefit satisfy the
minimum distribution incidental benefit
requirement under these regulations, the
distribution will be deemed to satisfy
any requirement for distributions under
the incidental benefit requirements of
§ 1.401–1(b)(1)(i). However, if a plan
provides for certain post-retirement
ancillary death benefits or a section
403(b) contract includes an
undistributed pre-1987 account, the
employee’s benefits must continue to
satisfy the distribution requirements of
the incidental benefit requirement of
§ 1.401–1(b)(1)(i), determined without
regard to these regulations. Existing
revenue rulings continue to provide
guidance with respect to the application
of the incidental benefit requirements to

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permissible nonretirement benefits such
as life, accident, or health benefits.

the trust continues to be a trust under
state law.

Trust as Beneficiary

Separate Accounts
Several commentators requested
clarification concerning when an
employee’s individual account can be
divided into separate accounts that are
permitted to satisfy section 401(a)(9)
separately and concerning whether
separate accounts could also provide for
separate investments. In response to
these comments, these final regulations
provide that separate accounts with
different beneficiaries under the plan
can be established at any time, either
before or after the employee’s required
beginning date. However, the final
regulations provide that the separate
accounts are recognized for purposes of
determining required minimum
distributions only after the later of the
year of the employee’s death (whether
before or after the required beginning
date) and the year the separate accounts
are established. In addition, the final
regulations clarify that, in order to
determine the distribution period for the
separate account by disregarding the
beneficiaries of the other separate
account, the separate account must be
established no later than the end of the
year following the year of the
employee’s death.
The separate accounting must allocate
all post-death investment gains and
losses for the period prior to the
establishment of the separate accounts
on a pro rata basis in a reasonable and
consistent basis among the separate
accounts for the different beneficiaries.
The separate accounting must also
allocate any post-death distribution to
the separate account of the beneficiary
receiving that distribution. Once the
separate accounts are established, the
final regulations permit the separate
accounting to provide for separate
investments for each separate account.

The final regulations retain the
provision in the proposed regulations
allowing an underlying beneficiary of a
trust to be an employee’s designated
beneficiary for purposes of determining
required minimum distributions when
the trust is named as the beneficiary of
a retirement plan or IRA, provided that
certain requirements are met. One of
these requirements is that
documentation of the underlying
beneficiaries of the trust be provided to
the plan administrator or IRA trustee,
custodian, or issuer. In the case of
individual accounts, unless the lifetime
distribution period for an employee is
measured by the joint life expectancy of
the employee and the employee’s
spouse, the deadline under these
regulations for providing the beneficiary
documentation is October 31 of the year
following the year of the employee’s
death, rather than the end of the year
following the year of the employee’s
death as provided under the 2001
proposed regulations.
This deadline for providing the trust
documentation is coordinated with the
deadline for determining the employee’s
designated beneficiary. Amendments to
the 1987 proposed regulations
published in 1997 eliminated the
requirement that the trust be irrevocable
before death. Commentators indicated
that some beneficiaries would have
qualified for a longer distribution period
as a result of this change except for the
fact that they had not provided the
required documentation by the deadline
provided in the regulations, which, in
some cases, was a date before the
regulation was published.
Consequently, the commentators
requested that final regulations provide
a transition period for providing this
documentation. In response to these
comments, these regulations provide
that, if the date for providing this
documentation is before October 31,
2003, the documentation is permitted to
be provided to the plan administrator
(or IRA trustee, custodian, or issuer)
until October 31, 2003.
Commentators asked for clarification
as to whether an election by a revocable
trust to be treated as part of an estate
under section 645 causes the trust to be
treated as an estate for purposes of
section 401(a)(9). On this point, the IRS
and Treasury intend that a revocable
trust will not fail to be a trust for
purposes of section 401(a)(9) merely
because the trust elects to be treated as
an estate under section 645, as long as

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Elimination of Optional Forms of
Benefit
Some commentators requested relief
under section 411(d)(6) for the
elimination of optional forms of benefit
that were needed to satisfy section
401(a)(9) under the 1987 proposed
regulations but that are no longer
needed to satisfy these final regulations.
For defined contribution plans, this
relief generally is not needed because
paragraph (e) of A–2 of § 1.411(d)–4
gives broad authority to employers to
amend their defined contribution plan
to eliminate installment payout options
as long as the right to a lump sum
option payable at the same time is
preserved. These final regulations also
provide that, pursuant to section

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411(d)(6)(B), a plan will not fail to
satisfy section 411(d)(6) merely because
the plan is amended to eliminate the
availability of an optional form of
benefit to the extent that the optional
form does not satisfy section 401(a)(9).
However, the IRS and Treasury invite
public comment if additional relief
under section 411(d)(6) is needed in
order for defined benefit plans to satisfy
section 401(a)(9).
Election of Surviving Spouse To Treat
an Inherited IRA as Spouse’s Own IRA
These final regulations generally
retain the clarifications in the 2001
proposed regulations regarding how and
when a surviving spouse of a deceased
IRA owner can elect to treat an IRA
inherited by the surviving spouse from
that owner as the spouse’s own IRA.
The 1987 proposed regulations provided
that this election is deemed to have
been made if the surviving spouse
contributes to the IRA or does not take
the required minimum distribution for a
year under section 401(a)(9)(B) as a
beneficiary of the IRA. Under the 2001
proposed regulations, this deemed
election is permitted to be made only
after the distribution of the required
minimum amount for the account, if
any, for the year of the individual’s
death. These final regulations provide
that the election can be made at any
time after the IRA owner’s date of death,
while clarifying that the minimum
required distribution for the calendar
year of the IRA’s owner’s death is
determined assuming the IRA owner
lived throughout the year. These
regulations also clarify that the
surviving spouse is required to receive
a minimum distribution for the year of
the IRA owner’s death only to the extent
that the amount required was not
distributed to the owner before death.
Some commentators raised concerns
about the other clarifications in the 2001
proposed regulations. The 2001
proposed regulations clarified that a
deemed election is permitted only if the
spouse is the sole beneficiary of the
account and has an unlimited right to
withdraw from the account. This
requirement is not satisfied if a trust is
named as beneficiary of the IRA, even
if the spouse is the sole beneficiary of
the trust. As explained in the 2001
preamble, these clarifications make the
election consistent with the underlying
premise that the surviving spouse could
have received a distribution of the entire
decedent IRA owner’s account and
rolled it over to an IRA established in
the surviving spouse’s own name as IRA
owner.
If the spouse actually receives a
distribution from the IRA, the spouse is

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permitted to roll that distribution over
within 60 days into an IRA in the
spouse’s own name to the extent that
the distribution is not a required
distribution, regardless of whether or
not the spouse is the sole beneficiary of
the IRA owner. Further, if the
distribution is received by the spouse
before the year that the IRA owner
would have been 701⁄2, no portion of the
distribution is a required minimum
distribution for purposes of determining
whether it is eligible to be rolled over
by the surviving spouse.
IRA Reporting of Required Minimum
Distributions
The 2001 proposed regulations
required the trustee, custodian, or issuer
of an IRA to report the amount of the
required minimum distribution from the
IRA at the time and in the manner
provided under additional guidance
issued by the IRS and applicable IRS
forms and instructions. A significant
number of commentators objected to the
requirement that the amount of the
required minimum distribution for a
year be reported because of concerns
that the number may be inaccurate in
certain cases. After thorough
consideration of these comments and
consultation with interested parties, the
final regulations continue to provide
authority to the Service to determine the
extent to which the trustee, custodian,
or issuer of an IRA must report
information with respect to the required
minimum distribution from that IRA
through guidance of general
applicability as well as forms and
publications.
In conjunction with these final
regulations a notice is being published
that specifies the reporting requirements
that apply. Beginning in 2004, trustees,
custodians, and issuers must identify to
the IRS on Form 5498 each IRA for
which a minimum distribution is
required to be made to an IRA owner.
The trustee, custodian or issuer does not
need to report the amount of the
required distribution to the IRS.
However, the trustee, custodian, or
issuer of such an IRA, must provide
additional information regarding the
IRA to the IRA owner required to
receive a minimum required
distribution, beginning with the
minimum required distribution for
2003. The trustee, custodian or issuer of
the IRA either must report the amount
of the required minimum distribution
for the IRA to the IRA owner, or must
advise the IRA owner that a minimum
distribution with respect to the IRA is
required for the year, offer to calculate
the amount of the required minimum
distribution for the IRA owner upon

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request, and then, if requested, calculate
the amount and provide it to the IRA
owner. Although the delegation of
authority in the regulations to require
reporting would permit reporting to be
required with respect to required
minimum distributions to beneficiaries,
no reporting is required with respect to
beneficiaries at this time.
The reporting provisions in the 2001
proposed regulations, these final
regulations, and the notice being
published are intended to assist
taxpayers in complying with the
minimum distribution requirement.
However, the Treasury and the IRS
continue to have concerns about the
overall level of compliance in this area
and intend to monitor the effect of the
new reporting regime on compliance to
determine whether it would be
appropriate to modify the regime in the
future.
Calculation Simplification
In response to comments that there
are too many variables that might
change during a distribution calendar
year for an accurate calculation of the
required minimum distribution for the
year by the trustee at the beginning of
the year, a number of simplifying
changes are included in these final
regulations. For lifetime distributions,
the marital status of the employee is
determined on January 1 each year.
Divorce or death after that date is
disregarded until the next year. Further,
a change in beneficiary due to the
spouse’s death is not recognized until
the following year. Contributions and
distributions made after December 31 of
a calendar year are disregarded for
purposes of determining the minimum
distribution for the following year. An
employee’s account balance for the
valuation calendar year that is also the
employee’s first distribution calendar
year is no longer reduced for a
distribution on April 1 to satisfy the
minimum distribution requirement for
the first distribution calendar year.
Contributions made after the calendar
year that are allocated as of a date in the
prior calendar year are no longer
required to be added back. The only
exceptions are rollover amounts, and
recharacterized conversion
contributions, that are not in any
account on December 31 of a year.
These changes are made to the qualified
plan rules as well as IRA rules to
maintain the parity between the rules.
Other Rules for IRAs
These final regulations retain the
general rule that the rules applying
section 401(a)(9) to qualified plans
apply also to IRAs, unless otherwise

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18993

provided. In addition to retaining the
special rules for IRAs provided in the
2001 proposed regulations, these final
regulations provide a special rule for
trustee-to-trustee transfers between IRAs
to coordinate with the rule that allows
aggregation of IRA distributions.
Although the IRA to IRA transfer is not
treated as a distribution for purposes of
section 401(a)(9), in light of the fact that
the required minimum distribution with
respect to the transferor IRA can be
taken from any IRA, the transferor IRA
will be able to transfer the entire
balance and will not be required to
retain the amount of the required
minimum distribution for the year.
Section 403(b) Contracts
These regulations retain the basic rule
in the 1987 and 2001 proposed
regulations that a section 403(b) contract
is treated as an individual retirement
plan for purposes of satisfying the
required minimum distribution rules.
Consequently, the delegation of
authority to require reporting with
respect to IRAs also applies to section
403(b) contracts. However, the notice
being issued in conjunction with these
regulations provides that no reporting is
required at this time with respect to
required minimum distributions from
section 403(b) contracts.
As requested in comments to the 1987
and the 2001 proposed regulations,
these regulations provide that an
annuity provided with respect to a
section 403(b)(9) retirement income
account will not fail to satisfy the
requirements for annuity payment
under an annuity contract merely
because the annuity is not provided
under a contract purchased from an
insurance company.
Section 1852(a) of TRA ’86 applied
section 401(a)(9) to section 403(b)
contracts effective for benefits accruing
after December 31, 1986. The final
regulations retain the rule in the
proposed regulations interpreting the
effective date of section 1852(a) of TRA
’86 that does not apply section 401(a)(9)
to the undistributed portion of the
employee’s account balance in a section
403(b) contract as of December 31, 1986
(the pre-’87 account balance). Further,
the final regulations clarify that a
contract will not lose the grandfather for
a pre-’87 account balance merely
because the account balance is
transferred from one section 403(b)
contract to another, provided the issuer
of the transferee contract satisfies the
recordkeeping requirements for the pre’87 account balance. However, a
distribution and rollover (including a
direct rollover) of an amount from the

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Federal Register / Vol. 67, No. 74 / Wednesday, April 17, 2002 / Rules and Regulations

pre-’87 account will cause that amount
to lose the grandfather treatment.
Amendment of Qualified Plans
The IRS intends to publish
procedures in the near future that will
provide guidance on amending qualified
plans to reflect these final regulations
under section 401(a)(9).
Amendment of IRAs and Effective Date
Rev. Proc. 2002–10 (2002–4 I.R.B.
401), provides guidance on when IRA
documents must be updated for these
final regulations and for changes made
by EGTRRA.
Effective Date
The regulations apply for determining
required minimum distributions for
calendar years beginning on or after
January 1, 2003. For determining
required minimum distributions for
calendar year 2002, taxpayers may rely
on these final regulations, the 2001
proposed regulations, or the 1987
proposed regulations.
Special Analyses
It has been determined that these
regulations are not a significant
regulatory action as defined in
Executive Order 12866. Therefore, a
regulatory assessment is not required. It
is hereby certified that the collection of
information in these regulations does
not have a significant economic impact
on a substantial number of small
entities. This certification is based on
the following. The only provisions
requiring collection of information are
in A–2 of § 1.401(a)(9)–1, A–4 of
§ 1.401(a)(9)–3, A–5 and A–6 of
§ 1.401(a)(9)–4, and A–2 of § 1.403(b)–3.
The election described in A–4 of
§ 1.401(a)(9)–3 is expected to be an
unusual occurrence for small entities
because few individuals with benefits in
retirement plans maintained by small
entities are likely to make these
elections. In the case of A–2 of
§ 1.401(a)(9)–1 and A–5 and A–6 of
§ 1.401(a)(9)–4, when determining
required minimum distributions in
cases where a plan participant wishes to
designate a trust as beneficiary of the
participant’s benefit, the reporting
burden is primarily on the plan
participant, or trustee of the trust named
as beneficiary, to supply information
rather than on the entity maintaining
the retirement plan and the fact that the
number of participants per plan to
whom the burden applies is
insignificant. In A–2 of 1.403(b)–3, the
recordkeeping burden with respect to
section 403(b) contracts under which
the pre-1987 account balance must be
maintained only applies to issuers and

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custodians of those contracts, which
generally are not small entities.
Therefore, a Regulatory Flexibility
Analysis (5 U.S.C. chapter 6) is not
required for this regulation. Pursuant to
section 7805(f) of the Internal Revenue
Code, the notices of proposed
rulemaking preceding the final rule
were submitted to the Chief Counsel for
Advocacy of the Small Business
Administration for comment on their
impact on small business and temporary
§ 1.401(a)(9)–6T will be submitted to the
Chief Counsel for such comments.
Drafting Information
The principal authors of these
regulations are Marjorie Hoffman and
Cathy A. Vohs of the Office of the
Division Counsel/Associate Chief
Counsel (Tax Exempt and Government
Entities). However, other personnel
from the IRS and Treasury participated
in their development.
List of Subjects
26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
26 CFR Part 54
Excise taxes, Pensions, Reporting and
recordkeeping requirements.
26 CFR Part 602
Reporting and recordkeeping
requirements.
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR part 1 is
amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 is amended by adding entries
in numerical order to read in part as
follows:
Authority: 26 U.S.C. 7805 * * *
§ 1.401(a)(9)–1 is also issued under 26
U.S.C. 401(a)(9).
§ 1.401(a)(9)–2 is also issued under 26
U.S.C. 401(a)(9).
§ 1.401(a)(9)–3 is also issued under 26
U.S.C. 401(a)(9).
§ 1.401(a)(9)–4 is also issued under 26
U.S.C. 401(a)(9).
§ 1.401(a)(9)–5 is also issued under 26
U.S.C. 401(a)(9).
§ 1.401(a)(9)–6T is also issued under 26
U.S.C. 401(a)(9).
§ 1.401(a)(9)–7 is also issued under 26
U.S.C. 401(a)(9).
§ 1.401(a)(9)–8 is also issued under 26
U.S.C. 401(a)(9).
§ 1.401(a)(9)–9 is also issued under 26
U.S.C. 401(a)(9). * * *
§ 1.403(b)–3 is also issued under 26 U.S.C.
403(b)(10). * * *

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§ 1.408–8 is also issued under 26 U.S.C.
408(a)(6) and (b)(3). * * *

Par. 2. Sections 1.401(a)(9)–0 through
1.401(a)(9)–9 are added to read as
follows:
§ 1.401(a)(9)–0 Required minimum
distributions; table of contents.

This table of contents lists the
regulations relating to required
minimum distributions under section
401(a)(9) of the Internal Revenue Code
as follows:
§ 1.401(a)(9)–0 Required minimum
distributions; table of contents.
§ 1.401(a)(9)–1 Minimum distribution
requirement in general.
§ 1.401(a)(9)–2 Distributions commencing
during an employee’s lifetime.
§ 1.401(a)(9)–3 Death before required
beginning date.
§ 1.401(a)(9)–4 Determination of the
designated beneficiary.
§ 1.401(a)(9)–5 Required minimum
distributions from defined contribution
plans.
§ 1.401(a)(9)–6T Required minimum
distributions for defined benefit plans
and annuity contracts (temporary).
§ 1.401(a)(9)–7 Rollovers and transfers.
§ 1.401(a)(9)–8 Special rules.
§ 1.401(a)(9)–9 Life expectancy and
distribution period tables.
§ 1.401(a)(9)–1
Minimum distribution
requirement in general.

Q–1. What plans are subject to the
minimum distribution requirement
under section 401(a)(9), this section,
and §§ 1.401(a)(9)–2 through
1.401(a)(9)–9?
A–1. Under section 401(a)(9), all stock
bonus, pension, and profit-sharing plans
qualified under section 401(a) and
annuity contracts described in section
403(a) are subject to required minimum
distribution rules. See this section and
§§ 1.401(a)(9)–2 through 1.401(a)(9)–9
for the distribution rules applicable to
these plans. Under section 403(b)(10),
annuity contracts or custodial accounts
described in section 403(b) are subject
to required minimum distribution rules.
See § 1.403(b)–3 for the distribution
rules applicable to these annuity
contracts or custodial accounts. Under
section 408(a)(6) and 408(b)(3),
individual retirement plans (including,
for some purposes, Roth IRAs under
section 408A) are subject to required
minimum distribution rules. See
§ 1.408–8 for the distribution rules
applicable to individual retirement
plans and see § 1.408A–6 for the
distribution rules applicable to Roth
IRAs under section 408A. Under section
457(d)(2), certain deferred
compensation plans for employees of
tax exempt organizations or state and

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Federal Register / Vol. 67, No. 74 / Wednesday, April 17, 2002 / Rules and Regulations
local government employees are subject
to required minimum distribution rules.
Q–2. Which employee account
balances and benefits held under
qualified trusts and plans are subject to
the distribution rules of section
401(a)(9), this section, and
§§ 1.401(a)(9)–2 through 1.401(a)(9)–9?
A–2. (a) In general. The distribution
rules of section 401(a)(9) apply to all
account balances and benefits in
existence on or after January 1, 1985.
This section and §§ 1.401(a)(9)–2
through 1.401(a)(9)–9 apply for
purposes of determining required
minimum distributions for calendar
years beginning on or after January 1,
2003.
(b) Beneficiaries. (1) The distribution
rules of this section and §§ 1.401(a)(9)–
2 through 1.401(a)(9)–9 apply to account
balances and benefits held for the
benefit of a beneficiary for calendar
years beginning on or after January 1,
2003, even if the employee died prior to
January 1, 2003. Thus, in the case of an
employee who died prior to January 1,
2003, the designated beneficiary must
be redetermined in accordance with the
provisions of § 1.401(a)(9)–4 and the
applicable distribution period
(determined under § 1.401(a)(9)–5 or
1.401(a)(9)–6T, whichever is applicable)
must be reconstructed for purposes of
determining the amount required to be
distributed for calendar years beginning
on or after January 1, 2003.
(2) A designated beneficiary that is
receiving payments under the 5-year
rule of section 401(a)(9)(B)(ii), either by
affirmative election or default
provisions, may, if the plan so provides,
switch to using the life expectancy rule
of section 401(a)(9)(B)(iii) provided any
amounts that would have been required
to be distributed under the life
expectancy rule of section
401(a)(9)(B)(iii) for all distribution
calendar years before 2004 are
distributed by the earlier of December
31, 2003 or the end of the 5-year period
determined under A–2 of § 1.401(a)(9)–
3.
(c) Trust documentation. If a trust
fails to meet the rule of A–5 of
§ 1.401(a)(9)–4 (permitting the
beneficiaries of the trust, and not the
trust itself, to be treated as the
employee’s designated beneficiaries)
solely because the trust documentation
was not provided to the plan
administrator by October 31 of the
calendar year following the calendar
year in which the employee died, and
such documentation is provided to the
plan administrator by October 31, 2003,
the beneficiaries of the trust will be
treated as designated beneficiaries of the
employee under the plan for purposes of

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determining the distribution period
under section 401(a)(9).
Q–3. What specific provisions must a
plan contain in order to satisfy section
401(a)(9)?
A–3. (a) Required provisions. In order
to satisfy section 401(a)(9), the plan
must include the provisions described
in this paragraph reflecting section
401(a)(9). First, the plan must generally
set forth the statutory rules of section
401(a)(9), including the incidental death
benefit requirement in section
401(a)(9)(G). Second, the plan must
provide that distributions will be made
in accordance with this section and
§§ 1.401(a)(9)–2 through 1.401(a)(9)–9.
The plan document must also provide
that the provisions reflecting section
401(a)(9) override any distribution
options in the plan inconsistent with
section 401(a)(9). The plan also must
include any other provisions reflecting
section 401(a)(9) that are prescribed by
the Commissioner in revenue rulings,
notices, and other guidance published
in the Internal Revenue Bulletin. See
§ 601.601(d)(2)(ii)(b) of this chapter.
(b) Optional provisions. The plan may
also include written provisions
regarding any optional provisions
governing plan distributions that do not
conflict with section 401(a)(9) and the
regulations thereunder.
(c) Absence of optional provisions.
Plan distributions commencing after an
employee’s death will be required to be
made under the default provision set
forth in § 1.401(a)(9)–3 for distributions
unless the plan document contains
optional provisions that override such
default provisions. Thus, if distributions
have not commenced to the employee at
the time of the employee’s death,
distributions after the death of an
employee are to be made automatically
in accordance with the default
provisions in A–4(a) of § 1.401(a)(9)–3
unless the plan either specifies in
accordance with A–4(b) of § 1.401(a)(9)–
3 the method under which distributions
will be made or provides for elections
by the employee (or beneficiary) in
accordance with A–4(c) of § 1.401(a)(9)–
3 and such elections are made by the
employee or beneficiary.
§ 1.401(a)(9)–2 Distributions commencing
during an employee’s lifetime.

Q–1. In the case of distributions
commencing during an employee’s
lifetime, how must the employee’s
entire interest be distributed in order to
satisfy section 401(a)(9)(A)?
A–1. (a) In order to satisfy section
401(a)(9)(A), the entire interest of each
employee must be distributed to such
employee not later than the required
beginning date, or must be distributed,

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18995

beginning not later than the required
beginning date, over the life of the
employee or joint lives of the employee
and a designated beneficiary or over a
period not extending beyond the life
expectancy of the employee or the joint
life and last survivor expectancy of the
employee and the designated
beneficiary.
(b) Section 401(a)(9)(G) provides that
lifetime distributions must satisfy the
incidental death benefit requirements.
(c) The amount required to be
distributed for each calendar year in
order to satisfy section 401(a)(9)(A) and
(G) generally depends on whether a
distribution is in the form of
distributions under a defined
contribution plan or annuity payments
under a defined benefit plan or under an
annuity contract. For the method of
determining the required minimum
distribution in accordance with section
401(a)(9)(A) and (G) from an individual
account under a defined contribution
plan, see § 1.401(a)(9)–5. For the method
of determining the required minimum
distribution in accordance with section
401(a)(9)(A) and (G) in the case of
annuity payments from a defined
benefit plan or an annuity contract, see
§ 1.401(a)(9)–6T.
Q–2. For purposes of section
401(a)(9)(C), what does the term
required beginning date mean?
A–2. (a) Except as provided in
paragraph (b) of this A–2 with respect
to a 5-percent owner, as defined in
paragraph (c) of this A–2, the term
required beginning date means April 1
of the calendar year following the later
of the calendar year in which the
employee attains age 701⁄2 or the
calendar year in which the employee
retires from employment with the
employer maintaining the plan.
(b) In the case of an employee who is
a 5-percent owner, the term required
beginning date means April 1 of the
calendar year following the calendar
year in which the employee attains age
701⁄2 .
(c) For purposes of section 401(a)(9),
a 5-percent owner is an employee who
is a 5-percent owner (as defined in
section 416) with respect to the plan
year ending in the calendar year in
which the employee attains age 701⁄2.
(d) Paragraph (b) of this A–2 does not
apply in the case of a governmental plan
(within the meaning of section 414(d))
or a church plan. For purposes of this
paragraph, the term church plan means
a plan maintained by a church for
church employees, and the term church
means any church (as defined in section
3121(w)(3)(A)) or qualified churchcontrolled organization (as defined in
section 3121(w)(3)(B)).

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(e) A plan is permitted to provide that
the required beginning date for purposes
of section 401(a)(9) for all employees is
April 1 of the calendar year following
the calendar year in which an employee
attains age 701⁄2 regardless of whether
the employee is a 5-percent owner.
Q–3. When does an employee attain
age 701⁄2?
A–3. An employee attains age 701⁄2 as
of the date six calendar months after the
70th anniversary of the employee’s
birth. For example, if an employee’s
date of birth was June 30, 1933, the 70th
anniversary of such employee’s birth is
June 30, 2003. Such employee attains
age 701⁄2 on December 30, 2003.
Consequently, if the employee is a 5percent owner or retired, such
employee’s required beginning date is
April 1, 2004. However, if the
employee’s date of birth was July 1,
1933, the 70th anniversary of such
employee’s birth would be July 1, 2003.
Such employee would then attain age
701⁄2 on January 1, 2004 and such
employee’s required beginning date
would be April 1, 2005.
Q–4. Must distributions made before
the employee’s required beginning date
satisfy section 401(a)(9)?
A–4. Lifetime distributions made
before the employee’s required
beginning date for calendar years before
the employee’s first distribution
calendar year, as defined in A–1(b) of
§ 1.401(a)(9)–5, need not be made in
accordance with section 401(a)(9).
However, if distributions commence
before the employee’s required
beginning date under a particular
distribution option, such as in the form
of an annuity, the distribution option
fails to satisfy section 401(a)(9) at the
time distributions commence if, under
terms of the particular distribution
option, distributions to be made for the
employee’s first distribution calendar
year or any subsequent distribution
calendar year will fail to satisfy section
401(a)(9).
Q–5. If distributions have begun to an
employee during the employee’s
lifetime (in accordance with section
401(a)(9)(A)(ii)), how must distributions
be made after an employee’s death?
A–5. Section 401(a)(9)(B)(i) provides
that if the distribution of the employee’s
interest has begun in accordance with
section 401(a)(9)(A)(ii) and the
employee dies before his entire interest
has been distributed to him, the
remaining portion of such interest must
be distributed at least as rapidly as
under the distribution method being
used under section 401(a)(9)(A)(ii) as of
the date of his death. The amount
required to be distributed for each
distribution calendar year following the

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calendar year of death generally
depends on whether a distribution is in
the form of distributions from an
individual account under a defined
contribution plan or annuity payments
under a defined benefit plan. For the
method of determining the required
minimum distribution in accordance
with section 401(a)(9)(B)(i) from an
individual account, see § 1.401(a)(9)–5.
In the case of annuity payments from a
defined benefit plan or an annuity
contract, see § 1.401(a)(9)–6T.
Q–6. For purposes of section
401(a)(9)(B), when are distributions
considered to have begun to the
employee in accordance with section
401(a)(9)(A)(ii)?
A–6. (a) General rule. Except as
otherwise provided in A–10 of
§ 1.401(a)(9)–6T, distributions are not
treated as having begun to the employee
in accordance with section
401(a)(9)(A)(ii) until the employee’s
required beginning date, without regard
to whether payments have been made
before that date. Thus, section
401(a)(9)(B)(i) only applies if an
employee dies on or after the
employee’s required beginning date. For
example, if employee A retires in 2003,
the calendar year A attains age 651⁄2,
and begins receiving installment
distributions from a profit-sharing plan
over a period not exceeding the joint life
and last survivor expectancy of A and
A’s spouse, benefits are not treated as
having begun in accordance with
section 401(a)(9)(A)(ii) until April 1,
2009 (the April 1 following the calendar
year in which A attains age 701⁄2).
Consequently, if A dies before April 1,
2009 (A’s required beginning date),
distributions after A’s death must be
made in accordance with section
401(a)(9)(B)(ii) or (iii) and (iv) and
§ 1.401(a)(9)–3, and not section
401(a)(9)(B)(i). This is the case without
regard to whether the plan has
distributed the minimum distribution
for the first distribution calendar year
(as defined in A–1(b) of § 1.401(a)(9)–5)
before A’s death.
(b) If a plan provides, in accordance
with A–2(e) of this section, that the
required beginning date for purposes of
section 401(a)(9) for all employees is
April 1 of the calendar year following
the calendar year in which an employee
attains age 701⁄2, an employee who dies
on or after the required beginning date
determined under the plan terms is
treated as dying after the employee’s
distributions have begun for purposes of
this A–6 even though the employee dies
before the April 1 following the
calendar year in which the employee
retires.

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§ 1.401(a)(9)–3 Death before required
beginning date.

Q–1. If an employee dies before the
employee’s required beginning date,
how must the employee’s entire interest
be distributed in order to satisfy section
401(a)(9)?
A–1. (a) Except as otherwise provided
in A–10 of § 1.401(a)(9)–6T, if an
employee dies before the employee’s
required beginning date (and, thus,
before distributions are treated as
having begun in accordance with
section 401(a)(9)(A)(ii)), distribution of
the employee’s entire interest must be
made in accordance with one of the
methods described in section
401(a)(9)(B)(ii) or (iii) and (iv). One
method (the 5-year rule in section
401(a)(9)(B)(ii)) requires that the entire
interest of the employee be distributed
within 5 years of the employee’s death
regardless of who or what entity
receives the distribution. Another
method (the life expectancy rule in
section 401(a)(9)(B)(iii) and (iv))
requires that any portion of an
employee’s interest payable to (or for
the benefit of) a designated beneficiary
be distributed, commencing within one
year of the employee’s death, over the
life of such beneficiary (or over a period
not extending beyond the life
expectancy of such beneficiary). Section
401(a)(9)(B)(iv) provides special rules
where the designated beneficiary is the
surviving spouse of the employee,
including a special commencement date
for distributions under section
401(a)(9)(B)(iii) to the surviving spouse.
(b) See A–4 of this section for the
rules for determining which of the
methods described in paragraph (a) of
this A–1 applies. See A–3 of this section
to determine when distributions under
the exception to the 5-year rule in
section 401(a)(9)(B)(iii) and (iv) must
commence. See A–2 of this section to
determine when the 5-year period in
section 401(a)(9)(B)(ii) ends. For
distributions using the life expectancy
rule in section 401(a)(9)(B)(iii) and (iv),
see § 1.401(a)(9)–4 in order to determine
the designated beneficiary under section
401(a)(9)(B)(iii) and (iv), see
§ 1.401(a)(9)–5 for the rules for
determining the required minimum
distribution under a defined
contribution plan, and see § 1.401(a)(9)–
6T for required minimum distributions
under defined benefit plans.
Q–2. By when must the employee’s
entire interest be distributed in order to
satisfy the 5-year rule in section
401(a)(9)(B)(ii)?
A–2. In order to satisfy the 5-year rule
in section 401(a)(9)(B)(ii), the
employee’s entire interest must be
distributed by the end of the calendar

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year which contains the fifth
anniversary of the date of the
employee’s death. For example, if an
employee dies on January 1, 2003, the
entire interest must be distributed by
the end of 2008, in order to satisfy the
5-year rule in section 401(a)(9)(B)(ii).
Q–3. When are distributions required
to commence in order to satisfy the life
expectancy rule in section
401(a)(9)(B)(iii) and (iv)?
A–3. (a) Nonspouse beneficiary. In
order to satisfy the life expectancy rule
in section 401(a)(9)(B)(iii), if the
designated beneficiary is not the
employee’s surviving spouse,
distributions must commence on or
before the end of the calendar year
immediately following the calendar year
in which the employee died. This rule
also applies to the distribution of the
entire remaining benefit if another
individual is a designated beneficiary in
addition to the employee’s surviving
spouse. See A–2 and A–3 of
§ 1.401(a)(9)–8, however, if the
employee’s benefit is divided into
separate accounts.
(b) Spousal beneficiary. In order to
satisfy the rule in section
401(a)(9)(B)(iii) and (iv), if the sole
designated beneficiary is the employee’s
surviving spouse, distributions must
commence on or before the later of—
(1) The end of the calendar year
immediately following the calendar year
in which the employee died; and
(2) The end of the calendar year in
which the employee would have
attained age 701⁄2.
Q–4. How is it determined whether
the 5-year rule in section 401(a)(9)(B)(ii)
or the life expectancy rule in section
401(a)(9)(B)(iii) and (iv) applies to a
distribution?
A–4. (a) No plan provision. If a plan
does not adopt an optional provision
described in paragraph (b) or (c) of this
A–4 specifying the method of
distribution after the death of an
employee, distribution must be made as
follows:
(1) If the employee has a designated
beneficiary, as determined under
§ 1.401(a)(9)–4, distributions are to be
made in accordance with the life
expectancy rule in section
401(a)(9)(B)(iii) and (iv).
(2) If the employee has no designated
beneficiary, distributions are to be made
in accordance with the 5-year rule in
section 401(a)(9)(B)(ii).
(b) Optional plan provisions. A plan
may adopt a provision specifying either
that the 5-year rule in section
401(a)(9)(B)(ii) will apply to certain
distributions after the death of an
employee even if the employee has a
designated beneficiary or that

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distribution in every case will be made
in accordance with the 5-year rule in
section 401(a)(9)(B)(ii). Further, a plan
need not have the same method of
distribution for the benefits of all
employees in order to satisfy section
401(a)(9).
(c) Elections. A plan may adopt a
provision that permits employees (or
beneficiaries) to elect on an individual
basis whether the 5-year rule in section
401(a)(9)(B)(ii) or the life expectancy
rule in section 401(a)(9)(B)(iii) and (iv)
applies to distributions after the death
of an employee who has a designated
beneficiary. Such an election must be
made no later than the earlier of the end
of the calendar year in which
distribution would be required to
commence in order to satisfy the
requirements for the life expectancy rule
in section 401(a)(9)(B)(iii) and (iv) (see
A–3 of this section for the determination
of such calendar year) or the end of the
calendar year which contains the fifth
anniversary of the date of death of the
employee. As of the last date the
election may be made, the election must
be irrevocable with respect to the
beneficiary (and all subsequent
beneficiaries) and must apply to all
subsequent calendar years. If a plan
provides for the election, the plan may
also specify the method of distribution
that applies if neither the employee nor
the beneficiary makes the election. If
neither the employee nor the beneficiary
elects a method and the plan does not
specify which method applies,
distribution must be made in
accordance with paragraph (a) of this A–
4.
Q–5. If the employee’s surviving
spouse is the employee’s sole
designated beneficiary and such spouse
dies after the employee, but before
distributions have begun to the
surviving spouse under section
401(a)(9)(B)(iii) and (iv), how is the
employee’s interest to be distributed?
A–5. Pursuant to section
401(a)(9)(B)(iv)(II), if the surviving
spouse is the employee’s sole
designated beneficiary and dies after the
employee, but before distributions to
such spouse have begun under section
401(a)(9)(B)(iii) and (iv), the 5-year rule
in section 401(a)(9)(B)(ii) and the life
expectancy rule in section
401(a)(9)(B)(iii) are to be applied as if
the surviving spouse were the
employee. In applying this rule, the date
of death of the surviving spouse shall be
substituted for the date of death of the
employee. However, in such case, the
rules in section 401(a)(9)(B)(iv) are not
available to the surviving spouse of the
deceased employee’s surviving spouse.

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18997

Q–6. For purposes of section
401(a)(9)(B)(iv)(II), when are
distributions considered to have begun
to the surviving spouse?
A–6. Distributions are considered to
have begun to the surviving spouse of
an employee, for purposes of section
401(a)(9)(B)(iv)(II), on the date,
determined in accordance with A–3 of
this section, on which distributions are
required to commence to the surviving
spouse, even though payments have
actually been made before that date. See
A–11 of § 1.401(a)(9)–6T for a special
rule for annuities.
§ 1.401(a)(9)–4 Determination of the
designated beneficiary.

Q–1. Who is a designated beneficiary
under section 401(a)(9)(E)?
A–1. A designated beneficiary is an
individual who is designated as a
beneficiary under the plan. An
individual may be designated as a
beneficiary under the plan either by the
terms of the plan or, if the plan so
provides, by an affirmative election by
the employee (or the employee’s
surviving spouse) specifying the
beneficiary. A beneficiary designated as
such under the plan is an individual
who is entitled to a portion of an
employee’s benefit, contingent on the
employee’s death or another specified
event. For example, if a distribution is
in the form of a joint and survivor
annuity over the life of the employee
and another individual, the plan does
not satisfy section 401(a)(9) unless such
other individual is a designated
beneficiary under the plan. A
designated beneficiary need not be
specified by name in the plan or by the
employee to the plan in order to be a
designated beneficiary so long as the
individual who is to be the beneficiary
is identifiable under the plan. The
members of a class of beneficiaries
capable of expansion or contraction will
be treated as being identifiable if it is
possible, to identify the class member
with the shortest life expectancy. The
fact that an employee’s interest under
the plan passes to a certain individual
under a will or otherwise under
applicable state law does not make that
individual a designated beneficiary
unless the individual is designated as a
beneficiary under the plan. See A–6 of
§ 1.401(a)(9)–8 for rules which apply to
qualified domestic relation orders.
Q–2. Must an employee (or the
employee’s spouse) make an affirmative
election specifying a beneficiary for a
person to be a designated beneficiary
under section 40l(a)(9)(E)?
A–2. No, a designated beneficiary is
an individual who is designated as a
beneficiary under the plan whether or

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not the designation under the plan was
made by the employee. The choice of
beneficiary is subject to the
requirements of sections 401(a)(11),
414(p), and 417.
Q–3. May a person other than an
individual be considered to be a
designated beneficiary for purposes of
section 401(a)(9)?
A–3. No, only individuals may be
designated beneficiaries for purposes of
section 401(a)(9). A person that is not an
individual, such as the employee’s
estate, may not be a designated
beneficiary. If a person other than an
individual is designated as a beneficiary
of an employee’s benefit, the employee
will be treated as having no designated
beneficiary for purposes of section
401(a)(9), even if there are also
individuals designated as beneficiaries.
However, see A–5 of this section for
special rules that apply to trusts and A–
2 and A–3 of § 1.401(a)(9)–8 for rules
that apply to separate accounts.
Q–4. When is the designated
beneficiary determined?
A–4. (a) General rule. In order to be
a designated beneficiary, an individual
must be a beneficiary as of the date of
death. Except as provided in paragraph
(b) and § 1.401(a)(9)–6T, the employee’s
designated beneficiary will be
determined based on the beneficiaries
designated as of the date of death who
remain beneficiaries as of September 30
of the calendar year following the
calendar year of the employee’s death.
Consequently, except as provided in
§ 1.401(a)(9)–6T, any person who was a
beneficiary as of the date of the
employee’s death, but is not a
beneficiary as of that September 30 (e.g.,
because the person receives the entire
benefit to which the person is entitled
before that September 30), is not taken
into account in determining the
employee’s designated beneficiary for
purposes of determining the distribution
period for required minimum
distributions after the employee’s death.
Accordingly, if a person disclaims
entitlement to the employee’s benefit,
pursuant to a disclaimer that satisfies
section 2518 by that September 30
thereby allowing other beneficiaries to
receive the benefit in lieu of that person,
the disclaiming person is not taken into
account in determining the employee’s
designated beneficiary.
(b) Surviving spouse. As provided in
A–5 of § 1.401(a)(9)–3, if the employee’s
spouse is the sole designated beneficiary
as of September 30 of the calendar year
following the calendar year of the
employee’s death, and the surviving
spouse dies after the employee and
before the date on which distributions
have begun to the surviving spouse

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under section 401(a)(9)(B)(iii) and (iv),
the rule in section 40l(a)(9)(B)(iv)(II)
will apply. Thus, for example, the
relevant designated beneficiary for
determining the distribution period after
the death of the surviving spouse is the
designated beneficiary of the surviving
spouse. Similarly, such designated
beneficiary will be determined based on
the beneficiaries designated as of the
date of the surviving spouse’s death and
who remain beneficiaries as of
September 30 of the calendar year
following the calendar year of the
surviving spouse’s death. Further, if, as
of that September 30, there is no
designated beneficiary under the plan
with respect to that surviving spouse,
distribution must be made in
accordance with the 5-year rule in
section 401(a)(9)(B)(ii) and A–2 of
§ 1.401(a)(9)–3.
(c) Deceased beneficiary. For
purposes of this A–4, an individual who
is a beneficiary as of the date of the
employee’s death and dies prior to
September 30 of the calendar year
following the calendar year of the
employee’s death without disclaiming
continues to be treated as a beneficiary
as of the September 30 of the calendar
year following the calendar year of the
employee’s death in determining the
employee’s designated beneficiary for
purposes of determining the distribution
period for required minimum
distributions after the employee’s death,
without regard to the identity of the
successor beneficiary who is entitled to
distributions as the beneficiary of the
deceased beneficiary. The same rule
applies in the case of distributions to
which A–5 of § 1.401(a)(9)–3 applies so
that, if an individual is designated as a
beneficiary of an employee’s surviving
spouse as of the spouse’s date of death
and dies prior to September 30 of the
year following the year of the surviving
spouse’s death, that individual will
continue to be treated as a designated
beneficiary.
Q–5. If a trust is named as a
beneficiary of an employee, will the
beneficiaries of the trust with respect to
the trust’s interest in the employee’s
benefit be treated as having been
designated as beneficiaries of the
employee under the plan for purposes of
determining the distribution period
under section 401(a)(9)?
A–5. (a) If the requirements of
paragraph (b) of this A–5 are met with
respect to a trust that is named as the
beneficiary of an employee under the
plan, the beneficiaries of the trust (and
not the trust itself) will be treated as
having been designated as beneficiaries
of the employee under the plan for

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purposes of determining the distribution
period under section 401(a)(9).
(b) The requirements of this paragraph
(b) are met if, during any period during
which required minimum distributions
are being determined by treating the
beneficiaries of the trust as designated
beneficiaries of the employee, the
following requirements are met—
(1) The trust is a valid trust under
state law, or would be but for the fact
that there is no corpus.
(2) The trust is irrevocable or will, by
its terms, become irrevocable upon the
death of the employee.
(3) The beneficiaries of the trust who
are beneficiaries with respect to the
trust’s interest in the employee’s benefit
are identifiable within the meaning of
A–1 of this section from the trust
instrument.
(4) The documentation described in
A–6 of this section has been provided to
the plan administrator.
(c) In the case of payments to a trust
having more than one beneficiary, see
A–7 of § 1.401(a)(9)–5 for the rules for
determining the designated beneficiary
whose life expectancy will be used to
determine the distribution period and
A–3 of this section for the rules that
apply if a person other than an
individual is designated as a beneficiary
of an employee’s benefit. However, the
separate account rules under A–2 of
§ 1.401(a)(9)–8 are not available to
beneficiaries of a trust with respect to
the trust’s interest in the employee’s
benefit.
(d) If the beneficiary of the trust
named as beneficiary of the employee’s
interest is another trust, the
beneficiaries of the other trust will be
treated as being designated as
beneficiaries of the first trust, and thus,
having been designated by the employee
under the plan for purposes of
determining the distribution period
under section 401(a)(9)(A)(ii), provided
that the requirements of paragraph (b) of
this A–5 are satisfied with respect to
such other trust in addition to the trust
named as beneficiary.
Q–6. If a trust is named as a
beneficiary of an employee, what
documentation must be provided to the
plan administrator?
A–6. (a) Required minimum
distributions before death. If an
employee designates a trust as the
beneficiary of his or her entire benefit
and the employee’s spouse is the sole
beneficiary of the trust, in order to
satisfy the documentation requirements
of this A–6 so that the spouse can be
treated as the sole designated
beneficiary of the employee’s benefits (if
the other requirements of paragraph (b)

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of A–5 of this section are satisfied), the
employee must either—
(1) Provide to the plan administrator
a copy of the trust instrument and agree
that if the trust instrument is amended
at any time in the future, the employee
will, within a reasonable time, provide
to the plan administrator a copy of each
such amendment; or
(2) Provide to the plan administrator
a list of all of the beneficiaries of the
trust (including contingent and
remaindermen beneficiaries with a
description of the conditions on their
entitlement sufficient to establish that
the spouse is the sole beneficiary) for
purposes of section 401(a)(9); certify
that, to the best of the employee’s
knowledge, this list is correct and
complete and that the requirements of
paragraph (b)(1), (2), and (3) of A–5 of
this section are satisfied; agree that, if
the trust instrument is amended at any
time in the future, the employee will,
within a reasonable time, provide to the
plan administrator corrected
certifications to the extent that the
amendment changes any information
previously certified; and agree to
provide a copy of the trust instrument
to the plan administrator upon demand.
(b) Required minimum distributions
after death. In order to satisfy the
documentation requirement of this A–6
for required minimum distributions
after the death of the employee (or
spouse in a case to which A–5 of
§ 1.401(a)(9)–3 applies), by October 31
of the calendar year immediately
following the calendar year in which the
employee died, the trustee of the trust
must either—
(1) Provide the plan administrator
with a final list of all beneficiaries of the
trust (including contingent and
remaindermen beneficiaries with a
description of the conditions on their
entitlement) as of September 30 of the
calendar year following the calendar
year of the employee’s death; certify
that, to the best of the trustee’s
knowledge, this list is correct and
complete and that the requirements of
paragraph (b)(1), (2), and (3) of A–5 of
this section are satisfied; and agree to
provide a copy of the trust instrument
to the plan administrator upon demand;
or
(2) Provide the plan administrator
with a copy of the actual trust document
for the trust that is named as a
beneficiary of the employee under the
plan as of the employee’s date of death.
(c) Relief for discrepancy between
trust instrument and employee
certifications or earlier trust
instruments. (1) If required minimum
distributions are determined based on
the information provided to the plan

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administrator in certifications or trust
instruments described in paragraph (a)
or (b) of this A–6, a plan will not fail
to satisfy section 401(a)(9) merely
because the actual terms of the trust
instrument are inconsistent with the
information in those certifications or
trust instruments previously provided to
the plan administrator, but only if the
plan administrator reasonably relied on
the information provided and the
required minimum distributions for
calendar years after the calendar year in
which the discrepancy is discovered are
determined based on the actual terms of
the trust instrument.
(2) For purposes of determining the
amount of the excise tax under section
4974, the required minimum
distribution is determined for any year
based on the actual terms of the trust in
effect during the year.
§ 1.401(a)(9)–5 Required minimum
distributions from defined contribution
plans.

Q–1. If an employee’s benefit is in the
form of an individual account under a
defined contribution plan, what is the
amount required to be distributed for
each calendar year?
A–1. (a) General rule. If an employee’s
accrued benefit is in the form of an
individual account under a defined
contribution plan, the minimum amount
required to be distributed for each
distribution calendar year, as defined in
paragraph (b) of this A–1, is equal to the
quotient obtained by dividing the
account (determined under A–3 of this
section) by the applicable distribution
period (determined under A–4 or A–5 of
this section, whichever is applicable).
However, the required minimum
distribution amount will never exceed
the entire account balance on the date
of the distribution. See A–8 of this
section for rules that apply if a portion
of the employee’s account is not vested.
Further, the minimum distribution
required to be distributed on or before
an employee’s required beginning date
is always determined under section
401(a)(9)(A)(ii) and this A–1 and not
section 401(a)(9)(A)(i).
(b) Distribution calendar year. A
calendar year for which a minimum
distribution is required is a distribution
calendar year. If an employee’s required
beginning date is April 1 of the calendar
year following the calendar year in
which the employee attains age 701⁄2,
the employee’s first distribution
calendar year is the year the employee
attains age 701⁄2. If an employee’s
required beginning date is April 1 of the
calendar year following the calendar
year in which the employee retires, the
employee’s first distribution calendar

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18999

year is the calendar year in which the
employee retires. In the case of
distributions to be made in accordance
with the life expectancy rule in
§ 1.401(a)(9)–3 and in section
401(a)(9)(B)(iii) and (iv), the first
distribution calendar year is the
calendar year containing the date
described in A–3(a) or A–3(b) of
§ 1.401(a)(9)–3, whichever is applicable.
(c) Time for distributions. The
distribution required to be made on or
before the employee’s required
beginning date shall be treated as the
distribution required for the employee’s
first distribution calendar year (as
defined in paragraph (b) of this A–1).
The required minimum distribution for
other distribution calendar years,
including the required minimum
distribution for the distribution calendar
year in which the employee’s required
beginning date occurs, must be made on
or before the end of that distribution
calendar year.
(d) Minimum distribution incidental
benefit requirement. If distributions of
an employee’s account balance under a
defined contribution plan are made in
accordance with this section, the
minimum distribution incidental benefit
requirement of section 401(a)(9)(G) is
satisfied. Further, with respect to the
retirement benefits provided by that
account balance, to the extent the
incidental benefit requirement of
§ 1.401–1(b)(1)(i) requires a distribution,
that requirement is deemed to be
satisfied if distributions satisfy the
minimum distribution incidental benefit
requirement of section 401(a)(9)(G) and
this section.
(e) Annuity contracts. Instead of
satisfying this A–1, the minimum
distribution requirement may be
satisfied by the purchase of an annuity
contract from an insurance company in
accordance with A–4 of § 1.401(a)(9)-6T
with the employee’s entire individual
account. If such an annuity is purchased
after distributions are required to
commence (the required beginning date,
in the case of distributions commencing
before death, or the date determined
under A–3 of § 1.401(a)(9)-3, in the case
of distributions commencing after
death), payments under the annuity
contract purchased will satisfy section
401(a)(9) for distribution calendar years
after the calendar year of the purchase
if payments under the annuity contract
are made in accordance with
§ 1.401(a)(9)-6T. In such a case,
payments under the annuity contract
will be treated as distributions from the
individual account for purposes of
determining if the individual account
satisfies section 401(a)(9) for the
calendar year of the purchase. An

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employee may also purchase an annuity
contract with a portion of the
employee’s account under the rules of
A–2(a)(3) of § 1.401(a)(9)-8.
Q–2. If an employee’s benefit is in the
form of an individual account and, in
any calendar year, the amount
distributed exceeds the minimum
required, will credit be given in
subsequent calendar years for such
excess distribution?
A–2. If, for any distribution calendar
year, the amount distributed exceeds the
minimum required, no credit will be
given in subsequent calendar years for
such excess distribution.
Q–3. What is the amount of the
account of an employee used for
determining the employee’s required
minimum distribution in the case of an
individual account?
A–3. (a) In the case of an individual
account, the benefit used in determining
the required minimum distribution for a
distribution calendar year is the account
balance as of the last valuation date in
the calendar year immediately
preceding that distribution calendar
year (valuation calendar year) adjusted
in accordance with paragraphs (b) and
(c) of this A–3.
(b) The account balance is increased
by the amount of any contributions or
forfeitures allocated to the account
balance as of dates in the valuation
calendar year after the valuation date.
For this purpose, contributions that are
allocated to the account balance as of
dates in the valuation calendar year
after the valuation date, but that are not
actually made during the valuation
calendar year, are permitted to be
excluded.
(c) The account balance is decreased
by distributions made in the valuation
calendar year after the valuation date.
(d) If an amount is distributed by one
plan and rolled over to another plan
(receiving plan), A–2 of § 1.401(a)(9)-7
provides additional rules for
determining the benefit and required
minimum distribution under the
receiving plan. If an amount is
transferred from one plan (transferor
plan) to another plan (transferee plan),
A–3 and A–4 of § 1.401(a)(9)-7 provide
additional rules for determining the
amount of the required minimum
distribution and the benefit under both
the transferor and transferee plans.
Q–4. For required minimum
distributions during an employee’s
lifetime, what is the applicable
distribution period?
A–4. (a) General rule. Except as
provided in paragraph (b) of this A–4,
the applicable distribution period for
required minimum distributions for
distribution calendar years up to and

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including the distribution calendar year
that includes the employee’s date of
death is determined using the Uniform
Lifetime Table in A–2 of § 1.401(a)(9)-9
for the employee’s age as of the
employee’s birthday in the relevant
distribution calendar year. If an
employee dies on or after the required
beginning date, the distribution period
applicable for calculating the amount
that must be distributed during the
distribution calendar year that includes
the employee’s death is determined as if
the employee had lived throughout that
year. Thus, a minimum required
distribution, determined as if the
employee had lived throughout that
year, is required for the year of the
employee’s death and that amount must
be distributed to a beneficiary to the
extent it has not already been
distributed to the employee.
(b) Spouse is sole beneficiary—(1)
General rule. Except as otherwise
provided in paragraph (b)(2) of this A–
4, if the sole designated beneficiary of
an employee is the employee’s surviving
spouse, for required minimum
distributions during the employee’s
lifetime, the applicable distribution
period is the longer of the distribution
period determined in accordance with
paragraph (a) of this A–4 or the joint life
expectancy of the employee and spouse
using the employee’s and spouse’s
attained ages as of the employee’s and
the spouse’s birthdays in the
distribution calendar year. The spouse
is sole designated beneficiary for
purposes of determining the applicable
distribution period for a distribution
calendar year during the employee’s
lifetime only if the spouse is the sole
beneficiary of the employee’s entire
interest at all times during the
distribution calendar year.
(2) Change in marital status. If the
employee and the employee’s spouse
are married on January 1 of a
distribution calendar year, but do not
remain married throughout that year
(i.e., the employee or the employee’s
spouse die or they become divorced
during that year), the employee will not
fail to have a spouse as the employee’s
sole beneficiary for that year merely
because they are not married throughout
that year. If an employee’s spouse
predeceases the employee, the spouse
will not fail to be the employee’s sole
beneficiary for the distribution calendar
year that includes the date of the
spouse’s death solely because, for the
period remaining in that year after the
spouse’s death, someone other than the
spouse is named as beneficiary.
However, the change in beneficiary due
to the death or divorce of the spouse
will be effective for purposes of

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determining the applicable distribution
period under section 401(a)(9) in the
distribution calendar year following the
distribution calendar year that includes
the date of the spouse’s death or
divorce.
Q–5. For required minimum
distributions after an employee’s death,
what is the applicable distribution
period?
A–5. (a) Death on or after the
employee’s required beginning date. If
an employee dies after distribution has
begun as determined under A–6 of
§ 1.401(a)(9)–2 (generally on or after the
employee’s required beginning date), in
order to satisfy section 401(a)(9)(B)(i),
the applicable distribution period for
distribution calendar years after the
distribution calendar year containing
the employee’s date of death is either—
(1) If the employee has a designated
beneficiary as of the date determined
under A–4 of § 1.401(a)(9)–4, the longer
of—
(i) The remaining life expectancy of
the employee’s designated beneficiary
determined in accordance with
paragraph (c)(1) or (2) of this A–5; and
(ii) The remaining life expectancy of
the employee determined in accordance
with paragraph (c)(3) of this A–5; or
(2) If the employee does not have a
designated beneficiary as of the date
determined under A–4 of § 1.401(a)(9)–
4, the remaining life expectancy of the
employee determined in accordance
with paragraph (c)(3) of this A–5.
(b) Death before an employee’s
required beginning date. If an employee
dies before distribution has begun, as
determined under A–5 of § 1.401(a)(9)–
2 (generally before the employee’s
required beginning date), in order to
satisfy section 401(a)(9)(B)(iii) or (iv)
and the life expectancy rule described
in A–1 of § 1.401(a)(9)–3, the applicable
distribution period for distribution
calendar years after the distribution
calendar year containing the employee’s
date of death is determined in
accordance with paragraph (c) of this A–
5. See A–4 of § 1.401(a)(9)–3 to
determine when the 5-year rule in
section 401(a)(9)(B)(ii) applies (e.g.,
there is no designated beneficiary or the
5-year rule is elected or specified by
plan provision).
(c) Life expectancy—(1) Nonspouse
designated beneficiary. Except as
otherwise provided in paragraph (c)(2),
the applicable distribution period
measured by the beneficiary’s remaining
life expectancy is determined using the
beneficiary’s age as of the beneficiary’s
birthday in the calendar year
immediately following the calendar year
of the employee’s death. In subsequent
calendar years, the applicable

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distribution period is reduced by one for
each calendar year that has elapsed after
the calendar year immediately following
the calendar year of the employee’s
death.
(2) Spouse designated beneficiary. If
the surviving spouse of the employee is
the employee’s sole beneficiary, the
applicable distribution period is
measured by the surviving spouse’s life
expectancy using the surviving spouse’s
birthday for each distribution calendar
year after the calendar year of the
employee’s death up through the
calendar year of the spouse’s death. For
calendar years after the calendar year of
the spouse’s death, the applicable
distribution period is the life
expectancy of the spouse using the age
of the spouse as of the spouse’s birthday
in the calendar year of the spouse’s
death, reduced by one for each calendar
year that has elapsed after the calendar
year of the spouse’s death.
(3) No designated beneficiary. If the
employee does not have a designated
beneficiary, the applicable distribution
period measured by the employee’s
remaining life expectancy is the life
expectancy of the employee using the
age of the employee as of the employee’s
birthday in the calendar year of the
employee’s death. In subsequent
calendar years the applicable
distribution period is reduced by one for
each calendar year that has elapsed after
the calendar year of the employee’s
death.
Q–6. What life expectancies must be
used for purposes of determining
required minimum distributions under
section 401(a)(9)?
A–6. Life expectancies for purposes of
determining required minimum
distributions under section 401(a)(9)
must be computed using the Single Life
Table in A–1 of § 1.401(a)(9)–9 and the
Joint and Last Survivor Table in A–3 of
§ 1.401(a)(9)–9.
Q–7. If an employee has more than
one designated beneficiary, which
designated beneficiary’s life expectancy
will be used to determine the applicable
distribution period?
A–7. (a) General rule—(1) Except as
otherwise provided in paragraph (c) of
this A–7, if more than one individual is
designated as a beneficiary with respect
to an employee as of the applicable date
for determining the designated
beneficiary under A–4 of § 1.401(a)(9)–
4, the designated beneficiary with the
shortest life expectancy will be the
designated beneficiary for purposes of
determining the applicable distribution
period.
(2) See A–3 of § 1.401(a)(9)-4 for rules
that apply if a person other than an
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and see A–2 and A–3 of § 1.401(a)(9)-8
for special rules that apply if an
employee’s benefit under a plan is
divided into separate accounts and the
beneficiaries with respect to a separate
account differ from the beneficiaries of
another separate account.
(b) Contingent beneficiary. Except as
provided in paragraph (c)(1) of this A–
7, if a beneficiary’s entitlement to an
employee’s benefit after the employee’s
death is a contingent right, such
contingent beneficiary is nevertheless
considered to be a beneficiary for
purposes of determining whether a
person other than an individual is
designated as a beneficiary (resulting in
the employee being treated as having no
designated beneficiary under the rules
of A–3 of § 1.401(a)(9)-4) and which
designated beneficiary has the shortest
life expectancy under paragraph (a) of
this A–7.
(c) Successor beneficiary—(1) A
person will not be considered a
beneficiary for purposes of determining
who is the beneficiary with the shortest
life expectancy under paragraph (a) of
this A–7, or whether a person who is
not an individual is a beneficiary,
merely because the person could
become the successor to the interest of
one of the employee’s beneficiaries after
that beneficiary’s death. However, the
preceding sentence does not apply to a
person who has any right (including a
contingent right) to an employee’s
benefit beyond being a mere potential
successor to the interest of one of the
employee’s beneficiaries upon that
beneficiary’s death. Thus, for example,
if the first beneficiary has a right to all
income with respect to an employee’s
individual account during that
beneficiary’s life and a second
beneficiary has a right to the principal
but only after the death of the first
income beneficiary (any portion of the
principal distributed during the life of
the first income beneficiary to be held
in trust until that first beneficiary’s
death), both beneficiaries must be taken
into account in determining the
beneficiary with the shortest life
expectancy and whether only
individuals are beneficiaries.
(2) If the individual beneficiary whose
life expectancy is being used to
calculate the distribution period dies
after September 30 of the calendar year
following the calendar year of the
employee’s death, such beneficiary’s
remaining life expectancy will be used
to determine the distribution period
without regard to the life expectancy of
the subsequent beneficiary.
(3) This paragraph (c) is illustrated by
the following examples:

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Example 1. (i) Employer M maintains a
defined contribution plan, Plan X. Employee
A, an employee of M, died in 2005 at the age
of 55, survived by spouse, B, who was 50
years old. Prior to A’s death, M had
established an account balance for A in Plan
X. A’s account balance is invested only in
productive assets. A named a testamentary
trust (Trust P) established under A’s will as
the beneficiary of all amounts payable from
A’s account in Plan X after A’s death. A copy
of the Trust P and a list of the trust
beneficiaries were provided to the plan
administrator of Plan X by October 31 of the
calendar year following the calendar year of
A’s death. As of the date of A’s death, the
Trust P was irrevocable and was a valid trust
under the laws of the state of A’s domicile.
A’s account balance in Plan X was includible
in A’s gross estate under § 2039.
(ii) Under the terms of Trust P, all trust
income is payable annually to B, and no one
has the power to appoint Trust P principal
to any person other than B. A’s children, who
are all younger than B, are the sole remainder
beneficiaries of the Trust P. No other person
has a beneficial interest in Trust P. Under the
terms of the Trust P, B has the power,
exercisable annually, to compel the trustee to
withdraw from A’s account balance in Plan
X an amount equal to the income earned on
the assets held in A’s account in Plan X
during the calendar year and to distribute
that amount through Trust P to B. Plan X
contains no prohibition on withdrawal from
A’s account of amounts in excess of the
annual required minimum distributions
under section 401(a)(9). In accordance with
the terms of Plan X, the trustee of Trust P
elects, in order to satisfy section 401(a)(9), to
receive annual required minimum
distributions using the life expectancy rule in
section 401(a)(9)(B)(iii) for distributions over
a distribution period equal to B’s life
expectancy. If B exercises the withdrawal
power, the trustee must withdraw from A’s
account under Plan X the greater of the
amount of income earned in the account
during the calendar year or the required
minimum distribution. However, under the
terms of Trust P, and applicable state law,
only the portion of the Plan X distribution
received by the trustee equal to the income
earned by A’s account in Plan X is required
to be distributed to B (along with any other
trust income.)
(iii) Because some amounts distributed
from A’s account in Plan X to Trust P may
be accumulated in Trust P during B’s lifetime
for the benefit of A’s children, as
remaindermen beneficiaries of Trust P, even
though access to those amounts are delayed
until after B’s death, A’s children are
beneficiaries of A’s account in Plan X in
addition to B and B is not the sole designated
beneficiary of A’s account. Thus the
designated beneficiary used to determine the
distribution period from A’s account in Plan
X is the beneficiary with the shortest life
expectancy. B’s life expectancy is the shortest
of all the potential beneficiaries of the
testamentary trust’s interest in A’s account in
Plan X (including remainder beneficiaries).
Thus, the distribution period for purposes of
section 401(a)(9)(B)(iii) is B’s life expectancy.
Because B is not the sole designated

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beneficiary of the testamentary trust’s interest
in A’s account in Plan X, the special rule in
401(a)(9)(B)(iv) is not available and the
annual required minimum distributions from
the account to Trust M must begin no later
than the end of the calendar year
immediately following the calendar year of
A’s death.
Example 2. (i) The facts are the same as
Example 1 except that the testamentary trust
instrument provides that all amounts
distributed from A’s account in Plan X to the
trustee while B is alive will be paid directly
to B upon receipt by the trustee of Trust P.
(ii) In this case, B is the sole designated
beneficiary of A’s account in Plan X for
purposes of determining the designated
beneficiary under section 401(a)(9)(B)(iii) and
(iv). No amounts distributed from A’s
account in Plan X to Trust P are accumulated
in Trust P during B’s lifetime for the benefit
of any other beneficiary. Therefore, the
residuary beneficiaries of Trust P are mere
potential successors to B’s interest in Plan X.
Because B is the sole beneficiary of the
testamentary trust’s interest in A’s account in
Plan X, the annual required minimum
distributions from A’s account to Trust P
must begin no later than the end of the
calendar year in which A would have
attained age 701⁄2, rather than the calendar
year immediately following the calendar year
of A’s death.

Q–8. If a portion of an employee’s
individual account is not vested as of
the employee’s required beginning date,
how is the determination of the required
minimum distribution affected?
A–8. If the employee’s benefit is in
the form of an individual account, the
benefit used to determine the required
minimum distribution for any
distribution calendar year will be
determined in accordance with A–1 of
this section without regard to whether
or not all of the employee’s benefit is
vested. If any portion of the employee’s
benefit is not vested, distributions will
be treated as being paid from the vested
portion of the benefit first. If, as of the
end of a distribution calendar year (or
as of the employee’s required beginning
date, in the case of the employee’s first
distribution calendar year), the total
amount of the employee’s vested benefit
is less than the required minimum
distribution for the calendar year, only
the vested portion, if any, of the
employee’s benefit is required to be
distributed by the end of the calendar
year (or, if applicable, by the employee’s
required beginning date). However, the
required minimum distribution for the
subsequent distribution calendar year
must be increased by the sum of
amounts not distributed in prior
calendar years because the employee’s
vested benefit was less than the required
minimum distribution.
Q–9. Which amounts distributed from
an individual account are taken into
account in determining whether section

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401(a)(9) is satisfied and which amounts
are not taken into account in
determining whether section 401(a)(9) is
satisfied?
A–9. (a) General rule. Except as
provided in paragraph (b), all amounts
distributed from an individual account
are distributions that are taken into
account in determining whether section
401(a)(9) is satisfied, regardless of
whether the amount is includible in
income. Thus, for example, amounts
that are excluded from income as
recovery of investment in the contract
under section 72 are taken into account
for purposes of determining whether
section 401(a)(9) is satisfied for a
distribution calendar year. Similarly,
amounts excluded from income as net
unrealized appreciation on employer
securities also are amounts distributed
for purposes of determining if section
401(a)(9) is satisfied.
(b) Exceptions. The following
amounts are not taken into account in
determining whether the required
minimum amount has been distributed
for a calendar year:
(1) Elective deferrals and employee
contributions that, pursuant to § 1.415–
6(b)(6)(iv), are returned (together with
the income allocable to these corrective
distributions) as a result of the
application of the section 415
limitations.
(2) Corrective distributions of excess
deferrals as described in § 1.402(g)1(e)(3), together with the income
allocable to these distributions.
(3) Corrective distributions of excess
contributions under a qualified cash or
deferred arrangement under section
401(k)(8) and excess aggregate
contributions under section 401(m)(6),
together with the income allocable to
these distributions.
(4) Loans that are treated as deemed
distributions pursuant to section 72(p).
(5) Dividends described in section
404(k) that are paid on employer
securities. (Amounts paid to the plan
that, pursuant to section
404(k)(2)(A)(iii)(II), are included in the
account balance and subsequently
distributed from the account lose their
character as dividends.)
(6) The costs of life insurance
coverage (P.S. 58 costs).
(7) Similar items designated by the
Commissioner in revenue rulings,
notices, and other guidance published
in the Internal Revenue Bulletin. See
§ 601.601(d)(2)(ii)(b) of this chapter.

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§ 1.401(a)(9)-6T Required minimum
distributions for defined benefit plans and
annuity contracts (temporary).

Q–1. How must distributions under a
defined benefit plan be paid in order to
satisfy section 401(a)(9)?
A–1. (a) General rules. In order to
satisfy section 401(a)(9), except as
otherwise provided in this A–1,
distributions under a defined benefit
plan must be paid in the form of
periodic annuity payments for the
employee’s life (or the joint lives of the
employee and beneficiary) or over a
period certain that does not exceed the
maximum length of the period certain
determined in accordance with A–3 of
this section. The interval between
payments for the annuity must be
uniform over the entire distribution
period and must not exceed one year.
Once payments have commenced over a
period certain, the period certain may
not be changed even if the period
certain is shorter than the maximum
permitted. Life annuity payments must
satisfy the minimum distribution
incidental benefit requirements of A–2
of this section. Except as otherwise
provided in A–4(b) of this section, all
payments (life and period certain) also
must either be nonincreasing or increase
only in accordance with one or more of
the following:
(1) With an annual percentage
increase that does not exceed the annual
percentage increase in a cost-of-living
index that is based on prices of all items
and issued by the Bureau of Labor
Statistics;
(2) To the extent of the reduction in
the amount of the employee’s payments
to provide for a survivor benefit upon
death, but only if the beneficiary whose
life was being used to determine the
period described in section
401(a)(9)(A)(ii) over which payments
were being made dies or is no longer the
employee’s beneficiary pursuant to a
qualified domestic relations order
within the meaning of section 414(p);
(3) To provide cash refunds of
employee contributions upon the
employee’s death; or
(4) To pay increased benefits that
result from a plan amendment.
(b) Life annuity with period certain.
The annuity may be a life annuity (or
joint and survivor annuity) with a
period certain if the life (or lives, if
applicable) and period certain each
meet the requirements of paragraph (a)
of this A–1. For purposes of this section,
if distributions are permitted to be made
over the lives of the employee and the
designated beneficiary, references to a
life annuity include a joint and survivor
annuity.

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(c) Annuity commencement. (1)
Annuity payments must commence on
or before the employee’s required
beginning date (within the meaning of
A–2 of § 1.401(a)(9)–2). The first
payment, which must be made on or
before the employee’s required
beginning date, must be the payment
which is required for one payment
interval. The second payment need not
be made until the end of the next
payment interval even if that payment
interval ends in the next calendar year.
Similarly, in the case of distributions
commencing after death in accordance
with section 401(a)(9)(B)(iii) and (iv),
the first payment, which must be made
on or before the date determined under
A–3(a) or (b) (whichever is applicable)
of § 1.401(a)(9)–3, must be the payment
which is required for one payment
interval. Payment intervals are the
periods for which payments are
received, e.g., bimonthly, monthly,
semi-annually, or annually. All benefit
accruals as of the last day of the first
distribution calendar year must be
included in the calculation of the
amount of annuity payments for
payment intervals ending on or after the
employee’s required beginning date.
(2) This paragraph (c) is illustrated by
the following example:
Example. A defined benefit plan (Plan X)
provides monthly annuity payments of $500
for the life of unmarried participants with a
10-year period certain. An unmarried, retired
participant (A) in Plan X attains age 701⁄2 in
2005. In order to meet the requirements of
this paragraph, the first monthly payment of
$500 must be made on behalf of A on or
before April 1, 2006, and the payments must
continue to be made in monthly payments of
$500 thereafter for the life and 10-year period
certain.

(d) Lump sum distributions. In the
case of a lump sum distribution of an
employee’s entire accrued benefit
during a distribution calendar year, the
amount that is the required minimum
distribution for the distribution calendar
year (and thus not eligible for rollover
under section 402(c)) is determined
using either the rule in paragraph (d)(1)
or (d)(2) of this A–1.
(1) The portion of the single sum
distribution that is a required minimum
distribution is determined by treating
the single sum distribution as a
distribution from an individual account
plan and treating the amount of the
single sum distribution as the
employee’s account balance as of the
end of the relevant valuation calendar
year. If the single sum distribution is
being made in the calendar year
containing the required beginning date
and the required minimum distribution
for the employee’s first distribution

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calendar year has not been distributed,
the portion of the single sum
distribution that represents the required
minimum distribution for the
employee’s first and second distribution
calendar years is not eligible for
rollover.
(2) The portion of the single sum
distribution that is a required minimum
distribution is permitted to be
determined by expressing the
employee’s benefit as an annuity that
would satisfy this section with an
annuity starting date as of the first day
of the distribution calendar year for
which the required minimum
distribution is being determined, and
treating one year of annuity payments as
the required minimum distribution for
that year, and not eligible for rollover.
If the single sum distribution is being
made in the calendar year containing
the required beginning date and the
required minimum distribution for the
employee’s first distribution calendar
year has not been made, the benefit
must be expressed as an annuity with an
annuity starting date as of the first day
of the first distribution calendar year
and the payments for the first two
calendar years would be treated as
required minimum distributions, and
not eligible for rollover.
(e) Death benefits. The rules
prohibiting increasing payments under
an annuity apply to payments made
upon the death of the employee. The
preceding sentence will not apply to an
increase due to an ancillary death
benefit described in this paragraph (e).
A death benefit with respect to an
employee’s benefit is an ancillary death
benefit for purposes of this A–1 if—
(1) It is not paid as part of the
employee’s accrued benefit or under any
optional form of the employee’s benefit,
and
(2) The death benefit, together with
any other potential payments with
respect to the employee’s benefit that
may be provided to a survivor, satisfy
the incidental benefit requirement of
§ 1.401–1(b)(1)(i),
(f) Additional guidance. Additional
guidance regarding how distributions
under a defined benefit plan must be
paid in order to satisfy section 401(a)(9)
may be issued by the Commissioner in
revenue rulings, notices, or other
guidance published in the Internal
Revenue Bulletin. See
§ 601.601(d)(2)(ii)(b) of this chapter.
Q–2. How must distributions in the
form of a life (or joint and survivor)
annuity be made in order to satisfy the
minimum distribution incidental benefit
(MDIB) requirement of section
401(a)(9)(G) and the distribution

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component of the incidental benefit
requirement of § 1.401–1(b)(1)(i)?
A–2. (a) Life annuity for employee. If
the employee’s benefit is payable in the
form of a life annuity for the life of the
employee satisfying section 401(a)(9)
without regard to the MDIB
requirement, the MDIB requirement of
section 401(a)(9)(G) will be satisfied.
(b) Joint and survivor annuity, spouse
beneficiary. If the employee’s sole
beneficiary, as of the annuity starting
date for annuity payments, is the
employee’s spouse and the distributions
satisfy section 401(a)(9) without regard
to the MDIB requirement, the
distributions to the employee will be
deemed to satisfy the MDIB requirement
of section 401(a)(9)(G). For example, if
an employee’s benefit is being
distributed in the form of a joint and
survivor annuity for the lives of the
employee and the employee’s spouse
and the spouse is the sole beneficiary of
the employee, the amount of the
periodic payment payable to the spouse
is permitted to be 100 percent of the
annuity payment payable to the
employee regardless of the difference in
the ages between the employee and the
employee’s spouse. The amount of the
annuity payments must satisfy A–1 of
this section (or A–4 of this section, if
applicable).
(c) Joint and survivor annuity,
nonspouse beneficiary—(1) Explanation
of rule. If distributions commence under
a distribution option that is in the form
of a joint and survivor annuity for the
joint lives of the employee and a
beneficiary other than the employee’s
spouse, the minimum distribution
incidental benefit requirement will not
be satisfied as of the date distributions
commence unless the distribution
option provides that annuity payments
to be made to the employee on and after
the employee’s required beginning date
will satisfy the conditions of this
paragraph (c). The periodic annuity
payment payable to the survivor must
not at any time on and after the
employee’s required beginning date
exceed the applicable percentage of the
annuity payment payable to the
employee using the table in paragraph
(c)(2) of this A–2. The applicable
percentage is based on the excess of the
age of the employee on the employee’s
birthday in a calendar year over the age
of the beneficiary as of the beneficiary’s
birthday in that calendar year.
Additionally, the amount of the annuity
payments must satisfy A–1 of this
section (or A–4 of this section, if
applicable). In the case of an annuity
which provides for increasing
payments, the requirement of this
paragraph (c) will be satisfied if the

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increase is determined in the same
manner for the employee and the
beneficiary.
(2) Table.

a life annuity and a period certain, the
amount of the annuity payments
payable to the beneficiary need not be
reduced during the period certain, but
in the case of a joint and survivor
Excess of age of employee
Applicable
annuity with a period certain, the
over age of beneficiary
percentage amount of the annuity payments
payable to the beneficiary must satisfy
10 years or less ........................
100
11 ..............................................
96 paragraph (c) of this A–2 after the
12 ..............................................
93 expiration of the period certain.
(e) Deemed satisfaction of incidental
13 ..............................................
90
14 ..............................................
87 benefit rule. Except in the case of
15 ..............................................
84 distributions with respect to an
16 ..............................................
82 employee’s benefit that include an
17 ..............................................
79 ancillary death benefit described in
18 ..............................................
77 paragraph A–1(e) of this section, to the
19 ..............................................
75 extent the incidental benefit
20 ..............................................
73 requirement of § 1.401–1(b)(1)(i)
21 ..............................................
72
requires a distribution, that requirement
22 ..............................................
70
23 ..............................................
68 is deemed to be satisfied if distributions
24 ..............................................
67 satisfy the minimum distribution
25 ..............................................
66 incidental benefit requirement of this
26 ..............................................
64 A–2. If the employee’s benefits include
27 ..............................................
63 an ancillary death benefit described in
28 ..............................................
62 paragraph A–1(e) of this section, the
29 ..............................................
61 benefits must be distributed in
30 ..............................................
60 accordance with the incidental benefit
31 ..............................................
59 requirement described in § 1.401–
32 ..............................................
59
1(b)(1)(i) and must also satisfy the
33 ..............................................
58
34 ..............................................
57 minimum distribution incidental benefit
35 ..............................................
56 requirement of this A–2.
Q–3. How long is a period certain
36 ..............................................
56
37 ..............................................
55 under a defined benefit plan permitted
38 ..............................................
55 to extend?
A–3. (a) Distributions commencing
39 ..............................................
54
40 ..............................................
54 during the employee’s life. The period
41 ..............................................
53 certain for any annuity distributions
42 ..............................................
53 commencing during the life of the
43 ..............................................
53 employee with an annuity starting date
44 and greater ..........................
52 on or after the employee’s required
beginning date generally is not
(3) Example. This paragraph (c) is
permitted to exceed the applicable
illustrated by the following example:
distribution period for the employee
Example. Distributions commence on
(determined in accordance with the
January 1, 2003 to an employee (Z), born
Uniform Lifetime Table in A–2 of
March 1, 1937, after retirement at age 65. Z’s
§ 1.401(a)(9)–9) for the calendar year
daughter (Y), born February 5, 1967, is Z’s
that contains the annuity starting date.
beneficiary. The distributions are in the form
See A–10 for the rule for annuity
of a joint and survivor annuity for the lives
payments with an annuity starting date
of Z and Y with payments of $500 a month
before the required beginning date.
to Z and upon Z’s death of $500 a month to
However, if the employee’s sole
Y, i.e., the projected monthly payment to Y
beneficiary is the employee’s spouse
is 100 percent of the monthly amount
payable to Z. There is no provision under the and the annuity provides only a period
option for a change in the projected
certain and no life annuity, the period
payments to Y, and corresponding increase to certain is permitted to be as long as the
Z, as of April 1, 2008, Z’s required beginning
joint life and last survivor expectancy of
date. Accordingly, under A–10 of this
the employee and the employee’s
section, compliance with the rules of this
spouse, if longer than the applicable
section is determined as of the annuity
distribution period for the employee.
starting date. Consequently, as of January 1,
(b) Distributions commencing after
2003 (the annuity starting date) the plan does
not satisfy the MDIB requirement because, as the employee’s death. (1) If annuity
of such date, the distribution option provides distributions commence after the death
that, as of Z’s required beginning date, the
of the employee under the life
monthly payment to Y upon Z’s death will
expectancy rule (under section
exceed 60 percent of Z’s monthly payment
401(a)(9)(B)(iii) or (iv)), the period
(the maximum percentage for a difference of
certain for any distributions
ages of 30 years).
commencing after death cannot exceed
(d) Period certain and annuity
the applicable distribution period
features. If a distribution form includes
determined under A–5(b) of

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§ 1.401(a)(9)–5 for the distribution
calendar year that contains the annuity
starting date.
(2) If the annuity starting date is in a
calendar year before the first
distribution calendar year, the period
certain may not exceed the life
expectancy of the designated beneficiary
using the beneficiary’s age in the year
that contains the annuity starting date.
Q–4. Will a plan fail to satisfy section
401(a)(9) merely because distributions
are made from an annuity contract
which is purchased from an insurance
company?
A–4. (a) General rule. A plan will not
fail to satisfy section 401(a)(9) merely
because distributions are made from an
annuity contract which is purchased
with the employee’s benefit by the plan
from an insurance company, as long as
the payments satisfy the requirements of
this section. If the annuity contract is
purchased after the required beginning
date, the first payment interval must
begin on or before the purchase date and
the payment required for one payment
interval must be made no later than the
end of such payment interval. If the
payments actually made under the
annuity contract do not meet the
requirements of section 401(a)(9), the
plan fails to satisfy section 401(a)(9).
(b) Permitted increases. In the case of
an annuity contract purchased from an
insurance company with an employee’s
account balance under a defined
contribution plan or under a section
403(a) annuity plan, if the total future
expected payments (determined in
accordance with paragraph (c)(3) of this
A–4) exceed the account value being
annuitized, the payments under the
annuity will not fail to satisfy the
nonincreasing payment requirement in
A–1(a) of this section merely because
the payments are increased in
accordance with one or more of the
following—
(1) By a constant percentage, applied
not less frequently than annually;
(2) To provide a payment upon the
death of the employee equal to the
excess of the account value being
annuitized over the total of payments
before the death of the employee.
(3) As a result of dividend payments
or other payments that result from
actuarial gains, but only if actuarial gain
is measured no less frequently than
annually and the resulting dividend
payments or other payments are either
paid no later than the year following the
year for which the actuarial experience
is measured or paid in the same form as
the payment of the annuity over the
remaining period of the annuity
(beginning no later than the year

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following the year for which the
actuarial experience is measured);
(4) As a final payment under the
annuity contract, but only if the
payment does not exceed the total
future expected payments as of the date
of the payment; or
(5) As a partial distribution under the
contract, but only if the contract
provides for a final payment as of the
date of partial distribution that satisfies
paragraph (b)(4) of this A–4 and the
future payments under the contract are
reduced by multiplying the otherwise
applicable future payments by a
fraction, the numerator of which is the
excess of that final payment over the
amount of the partial distribution and
the denominator of which is the amount
of that final payment. For the purpose
of determining this ratio, the
denominator is reduced by the amount
of any regularly scheduled payment due
on the date of the partial distribution.
(c) Definitions. For purposes of this
A–4, the following definitions apply—
(1) Account value being annuitized
means the value of the employee’s
entire interest (within the meaning of
A–12 of this section) being annuitized
(valued as of the date annuity payments
commence) or, in the case of a defined
contribution plan, the value of the
employee’s account balance used to
purchase an immediate annuity under
the contract.
(2) Actuarial gain means the
difference between the actuarial
assumptions used in pricing (i.e.,
investment return, mortality, expense,
and other similar assumptions) and the
actual experience with respect to those
assumptions. Actuarial gain also
includes differences between the
actuarial assumptions used in pricing
when an annuity was purchased and
actuarial assumptions used in pricing
annuities at the time the actuarial gain
is determined.
(3) Total future expected payments
means the total future payments to be
made under the annuity contract as of
the date of the determination, calculated
using the Single Life Table in A–1 of
§ 1.401(a)(9)–9 (or, if applicable, the
Joint and Last Survivor Table in A–3 of
in § 1.401(a)(9)–9) for annuitants who
are still alive, without regard to any
increases in annuity payments after the
date of determination, and taking into
account any remaining period certain.
(d) Examples. This A–4 is illustrated
by the following examples:
Example 1. A participant (Z1) in defined
contribution plan X attains age 70 on March
5, 2005, and thus, attains age 701⁄2 in 2005.
Z1 elects to purchase annuity Contract Y1
from Insurance Company W in 2005.
Contract Y1 is a life annuity contract with a

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10-year period certain. Contract Y1 provides
for an initial annual payment calculated with
an assumed interest rate (AIR) of 3 percent.
Subsequent payments are determined by
multiplying the prior year’s payment by a
fraction the numerator of which is 1 plus the
actual return on the separate account assets
underlying Contract Y1 since the preceding
payment and the denominator of which is 1
plus the AIR during that period. The value
of Z1’s account balance in Plan X at the time
of purchase is $105,000, and the purchase
price of Contract Y1 is $105,000. Contract Y1
provides Z1 with an initial payment of
$7,200 at the time of purchase in 2005. The
total future expected payments to Z1 under
Contract Y1 are $122,400, calculated as the
initial payment of $7,200 multiplied by the
age 70 life expectancy of 17. Because the total
future expected payments on the purchase
date exceed the account value used to
purchase Contract Y1 and payments may
only increase as a result of actuarial gain,
with such increases, beginning no later than
the next year, paid in the same form as the
payment of the annuity over the remaining
period of the annuity, distributions received
by Z1 from Contract Y1 meet the
requirements under paragraph (b)(3) of this
A–4.
Example 2. A participant (Z2) in defined
contribution plan X attains age 70 on May 1,
2005, and thus, attains age 701⁄2 in 2005. Z2
elects to purchase annuity Contract Y2 from
Insurance Company W in 2005. Contract Y2
is a participating life annuity contract with
a 10-year period certain. Contract Y2
provides for level annual payments with
dividends paid in a lump sum in the year
after the year for which the actuarial
experience is measured or paid out levelly
beginning in the year after the year for which
the actuarial gain is measured over the
remaining lifetime and period certain, i.e.,
the period certain ends at the same time as
the original period certain. Dividends are
determined annually by the Board of
Directors of Company W based upon a
comparison of actual actuarial experience to
expected actuarial experience in the past
year. The value of Z2’s account balance in
Plan X at the time of purchase is $265,000,
and the purchase price of Contract Y2 is
$265,000. Contract Y2 provides Z2 with an
initial payment of $16,000 in 2005. The total
future expected payments to Z2 under
Contract Y2 are calculated as the annual
initial payment of $16,000 multiplied by the
age 70 life expectancy of 17 for a total of
$272,000. Because the total future expected
payments on the purchase date exceeds the
account value used to purchase Contract Y2
and payments may only increase as a result
of actuarial gain, with such increases,
beginning no later than the next year, paid
in the same form as the payment of the
annuity over the remaining period of the
annuity, distributions received by Z2 from
Contract Y2 meet the requirements under
paragraph (b)(3) of this A–4.
Example 3. The facts are the same as in
Example 2 except that the annuity provides
a dividend accumulation option under which
Z2 may defer receipt of the dividends to a
time selected by Z2. Because the dividend
accumulation option permits dividends to be

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19005

paid later than the end of the year following
the year for which the actuarial experience is
measured or as a stream of payments that
only increase as a result of actuarial gain,
with such increases beginning no later than
the next year, paid in the same form as the
payment of the annuity over the remaining
period of the annuity in Example 2, the
dividend accumulation option does not meet
the requirements of paragraph (b)(3) of this
A–4. Neither does the dividend accumulation
option fit within any of the other increases
described in paragraph (b) of this A–4.
Accordingly, the dividend accumulation
option causes the contract, and consequently
any distributions from the contract, to fail to
meet the requirements of this A–4 and thus
fail to satisfy the requirements of section
401(a)(9).
Example 4. The facts are the same as in
Example 2 except that the annuity provides
an option under which actuarial gain under
the contract is used to provide additional
death benefit protection for Z2. Because this
option permits payments as a result of
actuarial gain to be paid later than the end
of the year following the year for which the
actuarial experience is measured or as a
stream of payments that only increase as a
result of actuarial gain, with such increases
beginning no later than the next year, paid
in the same form as the payment of the
annuity over the remaining period of the
annuity in Example 2, the option does not
meet the requirements of paragraph (b)(3) of
this A–4. Neither does the option fit within
any of the other increases described in
paragraph (b) of this A–4. Accordingly, the
addition of the option causes the contract,
and consequently any distributions from the
contract, to fail to meet the requirements of
this A–4 and thus fail to satisfy the
requirements of section 401(a)(9).
Example 5. A participant (Z3) in defined
contribution plan X attains age 701⁄2 in 2005.
Z3 elects to purchase annuity contract Y3
from Insurance Company W. Contract Y3 is
a life annuity contract with a 20-year period
certain (which does not exceed the maximum
period certain permitted under A–3(a) of this
section) with fixed annual payments
increasing 3 percent each year. The value of
Z3’s account balance in Plan X at the time
of purchase is $110,000, and the purchase
price of Contract Y3 is $110,000. Contract Y3
provides Z3 with an initial payment of
$6,000 at the time of purchase in 2005. The
total future expected payments to Z3 under
Contract Y3 are $120,000, calculated as the
initial annual payment of $6,000 multiplied
by the period certain of 20 years. Because the
total future expected payments on the
purchase date exceed the account value used
to purchase Contract Y3 and payments only
increase as a constant percentage applied not
less frequently than annually, distributions
received by Z3 from Contract Y3 meet the
requirements under paragraph (b)(1) of this
A–4.
Example 6. The facts are the same as in
Example 5 except that the initial payment is
$5,400 and the annual rate of increase is 4
percent. In this example, the total future
expected payments are $108,000, calculated
as the initial payment of $5,400 multiplied
by the period certain of 20 years. Because the

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total future expected payments are less than
the account value of $110,000 used to
purchase Contract Y3, distributions received
by Z3 do not meet the requirements
underparagraph (b) of this A–4 and thus fail
to meet the requirements of section 401(a)(9).
Example 7. (i) A participant (Z4) in defined
contribution Plan X attains age 78 in 2005.
Z4 elects to purchase Contract Y4 from
Insurance Company W. Contract Y4 provides
for fixed annual payments for 20 years
(which does not exceed the maximum period
certain permitted under A–3(a) of this
section) and provides that, on any payment
date, before receiving his payment due on
that date, Z4 may cancel Contract Y4 and
receive as a final payment an amount equal
to his remaining payments discounted with
interest at 4 percent. The value of Z4’s
account balance in Plan X at the time of
purchase is $500,000, and the purchase price
of Contract Y4 is $500,000. Contract Y4
provides Z4 with an initial payment in 2005
of $35,376.
(ii) Under Contract Y4, the amount that Z4
could receive upon cancellation of Contract
Y4 as a final payment, for all possible
cancellation dates, will always be less than
the total future expected payments on such
cancellation date. This is so because the total
future expected payments on any such
cancellation date is equal to the remaining
payments on such date, not discounted, an
amount always greater than the final
payment amount of these same remaining
payments, discounted at 4 percent.
(iii) The total future expected payments to
Z4 under Y4 are $707,520, calculated as the
annualized initial payment of $35,376
multiplied by the period certain of 20 years.
Because the total future expected payments
on the purchase date exceed the account
value used to purchase Contract Y4 and it is
not possible for a final payment under
Contract Y4 to ever exceed the total future
expected payments on the day of such final
payment, distributions received by Z4 under
Contract Y4 meet the requirements under
paragraph (b)(4) of this A–4.
(iv) As an illustration of the above, if
Participant Z4 were to elect to cancel
Contract Y4 on the day he was due to receive
his eleventh payment, his contractual final
payment would be $298,408 (including the
$35,376 he was due to receive on that day)
which is less than his total future expected
payments on that date ($353,760). These
amounts are determined as follows. On the
day Z4 was to receive his eleventh payment,
Z4 was entitled to receive ten future
payments of $35,376 (including the payment
he was due to receive on that day). The
discounted value of an annuity of ten
payments of $35,376, with the first payment
due on the date of the calculation of the
discounted value, and a discount rate of 4
percent, is $298,408. The product of the
payment amount of $35,376 multiplied by
10, the number of future payments to which
Z4 would be entitled on the day Z4 was to
receive the eleventh payment, is $353,760.
Example 8. (i) The facts are the same as in
Example 7 except that the annuity provides
an option for partial distributions of less than
the final payment amount (the maximum
distribution), with payments following such

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a partial distribution reduced by multiplying
the otherwise applicable future payments by
a fraction, the numerator of which is the
excess of the final payment amount over the
amount of the partial distribution and the
denominator of which is the amount of that
final payment. For the purposes of
determining this ratio, the denominator is
reduced by the amount of any regularly
scheduled payment due on the date of partial
distribution. This partial distribution option
meets the requirements of paragraph (b)(5) of
this A–4.
(ii) To illustrate the workings of this partial
distribution option, assume Z4 takes a
distribution of $100,000 on the date he was
to receive his eleventh payment of $35,376.
In such a case, under this partial distribution
option, his remaining nine payments, absent
any other extraordinary distributions, will be
reduced to $26,685. This amount is
determined as follows. The numerator of the
ratio described in the paragraph above is
equal to $ 198,408 (that is, the excess of a
total distribution of $298,408 over the partial
distribution of $100,000). The denominator
of the ratio described in the paragraph above
is equal to $263,032 (that is, the maximum
distribution on the date of the partial
distribution of $298,408 (see Example 6) less
the regularly scheduled payment of $35,376).
Thus, future payments must be multiplied by
75.43 percent (that is, $198,408 divided by
$263,032). Thus, his future payments must be
$26,685 (that is, $35,376 multiplied by 75.43
percent).
Example 9. (i) A participant (Z5) in defined
contribution plan X attains age 701⁄2 in 2005.
Z5 elects to purchase annuity Contract Y5
from Insurance Company W in 2005.
Contract Y5 is a participating life annuity
contract with a 20-year period certain.
Contract Y5 provides an initial payment at
the time of purchase of 5 percent of the
purchase price, a second payment one year
from the time of purchase of two percent of
the purchase price, and 18 succeeding annual
payments each increasing at a constant
percentage rate of 16 percent from the
preceding payment.
(ii) Contract Y5 fails to meet the
requirements of paragraph (b) of this A–4,
and thus fails to satisfy the requirements of
section 401(a)(9), because the expected total
payments without regard to any increases in
the annuity payment is only 43 percent of the
purchase price (that is, an amount not
exceeding the account value used to
purchase the annuity), calculated as 5
percent of the purchase price in year one and
two percent of the purchase price in each of
years two through twenty (or, .05 multiplied
by 1 year plus .02 multiplied by 19 years).

Q–5. In the case of annuity
distributions under a defined benefit
plan, how must additional benefits that
accrue after the employee’s first
distribution calendar year be distributed
in order to satisfy section 401(a)(9)?
A–5. (a) In the case of annuity
distributions under a defined benefit
plan, if any additional benefits accrue in
a calendar year after the employee’s first
distribution calendar year, distribution
of the amount that accrues in a calendar

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year must commence in accordance
with A–1 of this section beginning with
the first payment interval ending in the
calendar year immediately following the
calendar year in which such amount
accrues.
(b) A plan will not fail to satisfy
section 401(a)(9) merely because there is
an administrative delay in the
commencement of the distribution of
the additional benefits accrued in a
calendar year, provided that the actual
payment of such amount commences as
soon as practicable. However, payment
must commence no later than the end of
the first calendar year following the
calendar year in which the additional
benefit accrues, and the total amount
paid during such first calendar year
must be no less than the total amount
that was required to be paid during that
year under A–5(a) of this section.
Q–6. If a portion of an employee’s
benefit is not vested as of December 31
of a distribution calendar year, how is
the determination of the required
minimum distribution affected?
A–6. In the case of annuity
distributions from a defined benefit
plan, if any portion of the employee’s
benefit is not vested as of December 31
of a distribution calendar year, the
portion that is not vested as of such date
will be treated as not having accrued for
purposes of determining the required
minimum distribution for that
distribution calendar year. When an
additional portion of the employee’s
benefit becomes vested, such portion
will be treated as an additional accrual.
See A–5 of this section for the rules for
distributing benefits which accrue
under a defined benefit plan after the
employee’s first distribution calendar
year.
Q–7. If an employee (other than a 5percent owner) retires after the calendar
year in which the employee attains age
701⁄2, for what period must the
employee’s accrued benefit under a
defined benefit plan be actuarially
increased?
A–7. (a) Actuarial increase starting
date. If an employee (other than a 5percent owner) retires after the calendar
year in which the employee attains age
701⁄2, in order to satisfy section
401(a)(9)(C)(iii), the employee’s accrued
benefit under a defined benefit plan
must be actuarially increased to take
into account any period after age 701⁄2
in which the employee was not
receiving any benefits under the plan.
The actuarial increase required to satisfy
section 401(a)(9)(C)(iii) must be
provided for the period starting on the
April 1 following the calendar year in
which the employee attains age 701⁄2, or
January 1, 1997, if later.

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(b) Actuarial increase ending date.
The period for which the actuarial
increase must be provided ends on the
date on which benefits commence after
retirement in an amount sufficient to
satisfy section 401(a)(9).
(c) Nonapplication to plan providing
same required beginning date for all
employees. If, as permitted under A–2(e)
of § 1.401(a)(9)–2, a plan provides that
the required beginning date for purposes
of section 401(a)(9) for all employees is
April 1 of the calendar year following
the calendar year in which the
employee attains age 701⁄2 (regardless of
whether the employee is a 5-percent
owner) and the plan makes distributions
in an amount sufficient to satisfy section
401(a)(9) using that required beginning
date, no actuarial increase is required
under section 401(a)(9)(C)(iii).
(d) Nonapplication to governmental
and church plans. The actuarial
increase required under this A–7 does
not apply to a governmental plan
(within the meaning of section 414(d))
or a church plan. For purposes of this
paragraph, the term church plan means
a plan maintained by a church for
church employees, and the term church
means any church (as defined in section
3121(w)(3)(A)) or qualified churchcontrolled organization (as defined in
section 3121(w)(3)(B)).
Q–8. What amount of actuarial
increase is required under section
401(a)(9)(C)(iii)?
A–8. In order to satisfy section
401(a)(9)(C)(iii), the retirement benefits
payable with respect to an employee as
of the end of the period for actuarial
increases (described in A–7 of this
section) must be no less than: the
actuarial equivalent of the employee’s
retirement benefits that would have
been payable as of the date the actuarial
increase must commence under
paragraph (a) of A–7 of this section if
benefits had commenced on that date;
plus the actuarial equivalent of any
additional benefits accrued after that
date; reduced by the actuarial
equivalent of any distributions made
with respect to the employee’s
retirement benefits after that date.
Actuarial equivalence is determined
using the plan’s assumptions for
determining actuarial equivalence for
purposes of satisfying section 411.
Q–9. How does the actuarial increase
required under section 401(a)(9)(C)(iii)
relate to the actuarial increase required
under section 411?
A–9. In order for any of an employee’s
accrued benefit to be nonforfeitable as
required under section 411, a defined
benefit plan must make an actuarial
adjustment to an accrued benefit the
payment of which is deferred past

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normal retirement age. The only
exception to this rule is that generally
no actuarial adjustment is required to
reflect the period during which a benefit
is suspended as permitted under section
203(a)(3)(B) of the Employee Retirement
Income Security Act of 1974 (ERISA).
The actuarial increase required under
section 401(a)(9)(C)(iii) for the period
described in A–7 of this section is
generally the same as, and not in
addition to, the actuarial increase
required for the same period under
section 411 to reflect any delay in the
payment of retirement benefits after
normal retirement age. However, unlike
the actuarial increase required under
section 411, the actuarial increase
required under section 401(a)(9)(C)(iii)
must be provided even during any
period during which an employee’s
benefit has been suspended in
accordance with ERISA section
203(a)(3)(B).
Q–10. What rule applies if
distributions commence to an employee
on a date before the employee’s required
beginning date over a period permitted
under section 401(a)(9)(A)(ii) and the
distribution form is an annuity under
which distributions are made in
accordance with the provisions of A–1
(and if applicable A–4) of this section?
A–10. (a) General rule. If distributions
commence to an employee on an
irrevocable basis (except for
acceleration) on a date before the
employee’s required beginning date over
a period permitted under section
401(a)(9)(A)(ii) and the distribution
form is an annuity under which
distributions are made in accordance
with the provisions of A–1 (and, if
applicable, A–4) of this section, the
annuity starting date will be treated as
the required beginning date for purposes
of applying the rules of this section and
§ 1.401(a)(9)–2. Thus, for example, the
designated beneficiary distributions will
be determined as of the annuity starting
date. Similarly, if the employee dies
after the annuity starting date but before
the required beginning date determined
under A–2 of § 1.401(a)(9)–2, after the
employee’s death, the remaining portion
of the employee’s interest must continue
to be distributed in accordance with this
section over the remaining period over
which distributions commenced (single
or joint lives or period certain, as
applicable). The rules in § 1.401(a)(9)–3
and section 401(a)(9)(B)(ii) or (iii) and
(iv) do not apply.
(b) Period certain. If as of the
employee’s birthday in the year that
contains the annuity starting date, the
age of the employee is under 70, the
following rule applies in applying the
rule in paragraph (a) of A–3 of this

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19007

section. The applicable distribution
period for the employee (determined in
accordance with the Uniform Lifetime
Table in A–2 of § 1.401(a)(9)–9) is the
distribution period for age 70 using the
Uniform Lifetime Table in A–2 of
§ 1.401(a)(9)–9 plus the excess of 70
over age of the employee as of the
employee’s birthday in the year that
contains the annuity starting date.
Q–11. What rule applies if
distributions commence on an
irrevocable basis (except for
acceleration) to the surviving spouse of
an employee over a period permitted
under section 401(a)(9)(B)(iii)(II) before
the date on which distributions are
required to commence and the
distribution form is an annuity under
which distributions are made as of the
date distributions commence in
accordance with the provisions of A–1
(and if applicable A–4) of this section.
A–11.If distributions commence to the
surviving spouse of an employee on an
irrevocable basis (except for
acceleration) over a period permitted
under section 401(a)(9)(B)(iii)(II) before
the date on which distributions are
required to commence and the
distribution form is an annuity under
which distributions are made as of the
date distributions commence in
accordance with the provisions of A–1
(and if applicable A–4) of this section,
distributions will be considered to have
begun on the actual commencement
date for purposes of section
401(a)(9)(B)(iv)(II). Consequently, in
such case, A–5 of § 1.401(a)(9)–3 and
section 401(a)(9)(B)(ii) and (iii) will not
apply upon the death of the surviving
spouse as though the surviving spouse
were the employee. Instead, the annuity
distributions must continue to be made,
in accordance with the provisions of A–
1 (and if applicable A–4) of this section
over the remaining period over which
distributions commenced (single life or
period certain, as applicable).
Q–12. In the case of an annuity
contract under an individual account
plan from which annuity payments have
not commenced to on an irrevocable
basis (except for acceleration), how is
section 401(a)(9) satisfied with respect
to the employee’s or beneficiary’s entire
interest under the annuity contract for
the period prior to the date annuity
payments so commence?
A–12. Prior to the date that annuity
payments commence on an irrevocable
basis (except for acceleration) under an
individual account plan from an
annuity contract, the interest of an
employee or beneficiary under that
contract is treated as an individual
account for purposes of section
401(a)(9). Thus, the required minimum

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distribution for any year with respect to
that interest is determined under
§ 1.401(a)(9)–5 rather than this section.
For purposes of applying the rules in
§ 1.401(a)(9)–5, the entire interest under
the annuity contract as of December 31
of the relevant valuation calendar year
is treated as the account balance for the
valuation calendar year described in A–
3 of § 1.401(a)(9)–5. The entire interest
under an annuity contract is the dollar
amount credited to the employee or
beneficiary under the contract plus the
actuarial value of any other benefits
(such as minimum survivor benefits)
that will be provided under the contract.
See A–1 of § 1.401(a)(9)–5 for rules
relating to the satisfaction of section
401(a)(9) in the year that annuity
payments commence and A–2(a)(3) of
§ 1.401(a)(9)–8.
§ 1.401(a)(9)–7

Rollovers and transfers.

Q–1. If an amount is distributed by
one plan (distributing plan) and is
rolled over to another plan, is the
required minimum distribution under
the distributing plan affected by the
rollover?
A–1. No, if an amount is distributed
by one plan and is rolled over to another
plan, the amount distributed is still
treated as a distribution by the
distributing plan for purposes of section
401(a)(9), notwithstanding the rollover.
See A–1 of § 1.402(c)–2 for the
definition of a rollover and A–7 of
§ 1.402(c)–2 for rules for determining
the portion of any distribution that is
not eligible for rollover because it is a
required minimum distribution.
Q–2. If an amount is distributed by
one plan (distributing plan) and is
rolled over to another plan (receiving
plan), how are the benefit and the
required minimum distribution under
the receiving plan affected?
A–2. If an amount is distributed by
one plan (distributing plan) and is
rolled over to another plan (receiving
plan), the benefit of the employee under
the receiving plan is increased by the
amount rolled over for purposes of
determining the required minimum
distribution for the calendar year
immediately following the calendar year
in which the amount rolled over is
distributed. If the amount rolled over is
received after the last valuation date in
the calendar year under the receiving
plan, the benefit of the employee as of
such valuation date, adjusted in
accordance with A–3 of § 1.401(a)(9)–5,
will be increased by the rollover amount
valued as of the date of receipt. In
addition, if the amount rolled over is
received in a different calendar year
from the calendar year in which it is
distributed, the amount rolled over is

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deemed to have been received by the
receiving plan in the calendar year in
which it was distributed.
Q–3. In the case of a transfer of an
amount of an employee’s benefit from
one plan (transferor plan) to another
plan (transferee plan), are there any
special rules for satisfying section
401(a)(9) or determining the employee’s
benefit under the transferor plan?
A–3. (a) In the case of a transfer of an
amount of an employee’s benefit from
one plan (transferor plan) to another
(transferee plan), the transfer is not
treated as a distribution by the
transferor plan for purposes of section
401(a)(9). Instead, the benefit of the
employee under the transferor plan is
decreased by the amount transferred.
However, if any portion of an
employee’s benefit is transferred in a
distribution calendar year with respect
to that employee, in order to satisfy
section 401(a)(9), the transferor plan
must determine the amount of the
required minimum distribution with
respect to that employee for the
calendar year of the transfer using the
employee’s benefit under the transferor
plan before the transfer. Additionally, if
any portion of an employee’s benefit is
transferred in the employee’s second
distribution calendar year but on or
before the employee’s required
beginning date, in order to satisfy
section 401(a)(9), the transferor plan
must determine the amount of the
minimum distribution requirement for
the employee’s first distribution
calendar year based on the employee’s
benefit under the transferor plan before
the transfer. The transferor plan may
satisfy the minimum distribution
requirement for the calendar year of the
transfer (and the prior year if applicable)
by segregating the amount which must
be distributed from the employee’s
benefit and not transferring that amount.
Such amount may be retained by the
transferor plan and must be distributed
on or before the date required under
section 401(a)(9).
(b) For purposes of determining any
required minimum distribution for the
calendar year immediately following the
calendar year in which the transfer
occurs, in the case of a transfer after the
last valuation date for the calendar year
of the transfer under the transferor plan,
the benefit of the employee as of such
valuation date, adjusted in accordance
with A–3 of § 1.401(a)(9)–5, will be
decreased by the amount transferred,
valued as of the date of the transfer.
Q–4. If an amount of an employee’s
benefit is transferred from one plan
(transferor plan) to another plan
(transferee plan), how are the benefit

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and the required minimum distribution
under the transferee plan affected?
A–4. In the case of a transfer from one
plan (transferor plan) to another
(transferee plan), the benefit of the
employee under the transferee plan is
increased by the amount transferred in
the same manner as if it were a plan
receiving a rollover contribution under
A–2 of this section.
Q–5. How is a spinoff, merger or
consolidation (as defined in § 1.414(l)–
1) treated for purposes of determining
an employee’s benefit and required
minimum distribution under section
401(a)(9)?
A–5. For purposes of determining an
employee’s benefit and required
minimum distribution under section
401(a)(9), a spinoff, a merger, or a
consolidation (as defined in § 1.414(l)–
1) will be treated as a transfer of the
benefits of the employees involved.
Consequently, the benefit and required
minimum distribution of each employee
involved under the transferor and
transferee plans will be determined in
accordance with A–3 and A–4 of this
section.
§ 1.401(a)(9)–8

Special rules.

Q–1. What distribution rules apply if
an employee is a participant in more
than one plan?
A–1. If an employee is a participant
in more than one plan, the plans in
which the employee participates are not
permitted to be aggregated for purposes
of testing whether the distribution
requirements of section 401(a)(9) are
met. The distribution of the benefit of
the employee under each plan must
separately meet the requirements of
section 401(a)(9). For this purpose, a
plan described in section 414(k) is
treated as two separate plans, a defined
contribution plan to the extent benefits
are based on an individual account and
a defined benefit plan with respect to
the remaining benefits.
Q–2. If an employee’s benefit under a
defined contribution plan is divided
into separate accounts (or under a
defined benefit plan is divided into
segregated shares), do the distribution
rules in section 401(a)(9) and these
regulations apply separately to each
separate account?
A–2. (a) Defined contribution plan. (1)
Except as otherwise provided in this A–
2, if an employee’s benefit under a
defined contribution plan is divided
into separate accounts under the plan,
the separate accounts will be aggregated
for purposes of satisfying the rules in
section 401(a)(9). Thus, except as
otherwise provided in this A–2, all
separate accounts, including a separate
account for employee contributions

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under section 72(d)(2), will be
aggregated for purposes of section
401(a)(9).
(2) If the employee’s benefit in a
defined contribution plan is divided
into separate accounts and the
beneficiaries with respect to one
separate account differ from the
beneficiaries with respect to the other
separate accounts of the employee
under the plan, for years subsequent to
the calendar year containing the date on
which the separate accounts were
established, or date of death if later,
such separate account under the plan is
not aggregated with the other separate
accounts under the plan in order to
determine whether the distributions
from such separate account under the
plan satisfy section 401(a)(9). Instead,
the rules in section 401(a)(9) separately
apply to such separate account under
the plan. However, the applicable
distribution period for each such
separate account is determined
disregarding the other beneficiaries of
the employee’s benefit only if the
separate account is established on a date
no later than the last day of the year
following the calendar year of the
employee’s death. For example, if, in
the case of a distribution described in
section 401(a)(9)(B)(iii) and (iv), the
only beneficiary of a separate account
under the plan established on a date no
later than the end of the year following
the calendar year of the employee’s
death is the employee’s surviving
spouse, and beneficiaries other than the
surviving spouse are designated with
respect to the other separate accounts
with respect to the employee,
distribution of the spouse’s separate
account under the plan need not
commence until the date determined
under the first sentence in A–3(b) of
§ 1.401(a)(9)–3, even if distribution of
the other separate accounts under the
plan must commence at an earlier date.
Similarly, in the case of a distribution
after the death of an employee to which
section 401(a)(9)(B)(i) does not apply,
distribution from a separate account of
an employee established on a date no
later than the end of the year following
the year of the employee’s death may be
made over a beneficiary’s life
expectancy in accordance with section
401(a)(9)(B)(iii) and (iv) even though
distributions from other separate
accounts under the plan with different
beneficiaries are being made in
accordance with the 5-year rule in
section 401(a)(9)(B)(ii).
(3) A portion of an employee’s
account balance under a defined
contribution plan is permitted to be
used to purchase an annuity contract
while another portion stays in the

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account. In that case, the remaining
account under the plan must be
distributed in accordance with
§ 1.401(a)(9)–5 in order to satisfy section
401(a)(9) and the annuity payments
under the annuity contract must satisfy
§ 1.401(a)(9)–6T in order to satisfy
section 401(a)(9).
(b) Defined benefit plan. The rules of
paragraph (a)(2) and (3) of this A–2 also
apply to benefits under a defined benefit
plan where the benefits under the plan
are separated into separate identifiable
components which are separately
distributed.
Q–3. What are separate accounts for
purposes of section 401(a)(9)?
A–3. For purposes of section
401(a)(9), separate accounts in an
employee’s account are separate
portions of an employee’s benefit
reflecting the separate interests of the
employee’s beneficiaries under the plan
as of the date of the employee’s death
for which separate accounting is
maintained. The separate accounting
must allocate all post-death investment
gains and losses, contributions, and
forfeitures, for the period prior to the
establishment of the separate accounts
on a pro rata basis in a reasonable and
consistent manner among the separate
accounts. However, once the separate
accounts are actually established, the
separate accounting can provide for
separate investments for each separate
account under which gains and losses
from the investment of the account are
only allocated to that account, or
investment gain or losses can continue
to be allocated among the separate
accounts on a pro rata basis. A separate
accounting must allocate any post-death
distribution to the separate account of
the beneficiary receiving that
distribution.
Q–4. If a distribution is required to be
made to an employee by section
401(a)(9)(A) or is required to be made to
a surviving spouse under section
401(a)(9)(B), must the distribution be
made even if the employee, or spouse
where applicable, fails to consent to a
distribution while a benefit is
immediately distributable?
A–4. Yes, section 411(a)(11) and
section 417(e) (see §§ 1.411(a)(11)–
1(c)(2) and 1.417(e)–1(c)) require
employee and spousal consent to certain
distributions of plan benefits while such
benefits are immediately distributable. If
an employee’s normal retirement age is
later than the employee’s required
beginning date and, therefore, benefits
are still immediately distributable, the
plan must, nevertheless, distribute plan
benefits to the employee (or where
applicable, to the spouse) in a manner
that satisfies the requirements of section

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19009

401(a)(9). Section 401(a)(9) must be
satisfied even though the employee (or
spouse, where applicable) fails to
consent to the distribution. In such a
case, the plan may distribute in the form
of a qualified joint and survivor annuity
(QJSA) or in the form of a qualified
preretirement survivor annuity (QPSA),
as applicable, and the consent
requirements of sections 411(a)(11) and
417(e) are deemed to be satisfied if the
plan has made reasonable efforts to
obtain consent from the employee (or
spouse if applicable) and if the
distribution otherwise meets the
requirements of section 417. If, because
of section 401(a)(11)(B), the plan is not
required to distribute in the form of a
QJSA to a employee or a QPSA to a
surviving spouse, the plan may
distribute the required minimum
distribution amount to satisfy section
401(a)(9) and the consent requirements
of sections 411(a)(11) and 417(e) are
deemed to be satisfied if the plan has
made reasonable efforts to obtain
consent from the employee (or spouse if
applicable) and if the distribution
otherwise meets the requirements of
section 417.
Q–5. Who is an employee’s spouse or
surviving spouse for purposes of section
401(a)(9)?
A–5. Except as otherwise provided in
A–6(a) of this section (in the case of
distributions of a portion of an
employee’s benefit payable to a former
spouse of an employee pursuant to a
qualified domestic relations order), for
purposes of section 401(a)(9), an
individual is a spouse or surviving
spouse of an employee if such
individual is treated as the employee’s
spouse under applicable state law. In
the case of distributions after the death
of an employee, for purposes of
determining whether, under the life
expectancy rule in section
401(a)(9)(B)(iii) and (iv), the provisions
of section 401(a)(9)(B)(iv) apply, the
spouse of the employee is determined as
of the date of death of the employee.
Q–6. In order to satisfy section
401(a)(9), are there any special rules
which apply to the distribution of all or
a portion of an employee’s benefit
payable to an alternate payee pursuant
to a qualified domestic relations order
as defined in section 414(p) (QDRO)?
A–6. (a) A former spouse to whom all
or a portion of the employee’s benefit is
payable pursuant to a QDRO will be
treated as a spouse (including a
surviving spouse) of the employee for
purposes of section 401(a)(9), including
the minimum distribution incidental
benefit requirement, regardless of
whether the QDRO specifically provides
that the former spouse is treated as the

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spouse for purposes of sections
401(a)(11) and 417.
(b)(1) If a QDRO provides that an
employee’s benefit is to be divided and
a portion is to be allocated to an
alternate payee, such portion will be
treated as a separate account (or
segregated share) which separately must
satisfy the requirements of section
401(a)(9) and may not be aggregated
with other separate accounts (or
segregated shares) of the employee for
purposes of satisfying section 401(a)(9).
Except as otherwise provided in
paragraph (b)(2) of this A–6, distribution
of such separate account allocated to an
alternate payee pursuant to a QDRO
must be made in accordance with
section 401(a)(9). For example, in
general, distribution of such account
will satisfy section 401(a)(9)(A) if
required minimum distributions from
such account during the employee’s
lifetime begin not later than the
employee’s required beginning date and
the required minimum distribution is
determined in accordance with
§ 1.401(a)(9)–5 for each distribution
calendar year (using an applicable
distribution period determined under
A–4 of § 1.401(a)(9)–5 for the employee
in the distribution calendar year either
using the Uniform Lifetime Table in A–
2 of § 1.401(a)(9)–9 or using the joint life
expectancy of the employee and a
spousal alternate payee in the
distribution calendar year if the spousal
alternate payee is more than 10 years
younger than the employee). The
determination of whether distribution
from such account after the death of the
employee to the alternate payee will be
made in accordance with section
401(a)(9)(B)(i) or section 401(a)(9)(B)(ii)
or (iii) and (iv) will depend on whether
distributions have begun as determined
under A–6 of § 1.401(a)(9)–2 (which
provides, in general, that distributions
are not treated as having begun until the
employee’s required beginning date
even though payments may actually
have begun before that date). For
example, if the alternate payee dies
before the employee and distribution of
the separate account allocated to the
alternate payee pursuant to the QDRO is
to be made to the alternate payee’s
beneficiary, such beneficiary may be
treated as a designated beneficiary for
purposes of determining the minimum
distribution required from such account
after the death of the employee if the
beneficiary of the alternate payee is an
individual and if such beneficiary is a
beneficiary under the plan or specified
to or in the plan. Specification in or
pursuant to the QDRO is treated as
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(2) Distribution of the separate
account allocated to an alternate payee
pursuant to a QDRO will satisfy the
requirements of section 401(a)(9)(A)(ii)
if such account is to be distributed,
beginning not later than the employee’s
required beginning date, over the life of
the alternate payee (or over a period not
extending beyond the life expectancy of
the alternate payee). Also, if the plan
permits the employee to elect whether
distribution upon the death of the
employee will be made in accordance
with the 5-year rule in section
401(a)(9)(B)(ii) or the life expectancy
rule in section 401(a)(9)(B)(iii) and (iv)
pursuant to A–4(c) of § 1.401(a)(9)–3,
such election is to be made only by the
alternate payee for purposes of
distributing the separate account
allocated to the alternate payee pursuant
to the QDRO. If the alternate payee dies
after distribution of the separate account
allocated to the alternate payee pursuant
to a QDRO has begun (determined under
A–6 of § 1.401(a)(9)–2) but before the
employee dies, distribution of the
remaining portion of that portion of the
benefit allocated to the alternate payee
must be made in accordance with the
rules in § 1.401(a)(9)–5 or 1.401(a)(9)–6T
for distributions during the life of the
employee. Only after the death of the
employee is the amount of the required
minimum distribution determined in
accordance with the rules of section
401(a)(9)(B).
(c) If a QDRO does not provide that
an employee’s benefit is to be divided
but provides that a portion of an
employee’s benefit (otherwise payable
to the employee) is to be paid to an
alternate payee, such portion will not be
treated as a separate account (or
segregated share) of the employee.
Instead, such portion will be aggregated
with any amount distributed to the
employee and will be treated as having
been distributed to the employee for
purposes of determining whether
section 401(a)(9) has been satisfied with
respect to that employee.
Q–7. Will a plan fail to satisfy section
401(a)(9) merely because it fails to
distribute an amount otherwise required
to be distributed by section 401(a)(9)
during the period in which the issue of
whether a domestic relations order is a
QDRO is being determined?
A–7. A plan will not fail to satisfy
section 401(a)(9) merely because it fails
to distribute an amount otherwise
required to be distributed by section
401(a)(9) during the period in which the
issue of whether a domestic relations
order is a QDRO is being determined
pursuant to section 414(p)(7), provided
that the period does not extend beyond
the 18-month period described in

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Sfmt 4700

section 414(p)(7)(E). To the extent that
a distribution otherwise required under
section 401(a)(9) is not made during this
period, any segregated amounts, as
defined in section 414(p)(7)(A), will be
treated as though the amounts are not
vested during the period and any
distributions with respect to such
amounts must be made under the
relevant rules for nonvested benefits
described in either A–8 of § 1.401(a)(9)–
5 or A–6 of § 1.401(a)(9)–6T, as
applicable.
Q–8. Will a plan fail to satisfy section
401(a)(9) where an individual’s
distribution from the plan is less than
the amount otherwise required to satisfy
section 401(a)(9) because distributions
were being paid under an annuity
contract issued by a life insurance
company in state insurer delinquency
proceedings and have been reduced or
suspended by reasons of such state
proceedings?
A–8. A plan will not fail to satisfy
section 401(a)(9) merely because an
individual’s distribution from the plan
is less than the amount otherwise
required to satisfy section 401(a)(9)
because distributions were being paid
under an annuity contract issued by a
life insurance company in state insurer
delinquency proceedings and have been
reduced or suspended by reasons of
such state proceedings. To the extent
that a distribution otherwise required
under section 401(a)(9) is not made
during the state insurer delinquency
proceedings, this amount and any
additional amount accrued during this
period will be treated as though such
amounts are not vested during the
period and any distributions with
respect to such amounts must be made
under the relevant rules for nonvested
benefits described in either A–8 of
§ 1.401(a)(9)–5 or A–6 of § 1.401(a)(9)–
6T, as applicable.
Q–9. Will a plan fail to qualify as a
pension plan within the meaning of
section 401(a) solely because the plan
permits distributions to commence to an
employee on or after April 1 of the
calendar year following the calendar
year in which the employee attains age
701⁄2 even though the employee has not
retired or attained the normal retirement
age under the plan as of the date on
which such distributions commence?
A–9. No, a plan will not fail to qualify
as a pension plan within the meaning of
section 401(a) solely because the plan
permits distributions to commence to an
employee on or after April 1 of the
calendar year following the calendar
year in which the employee attains age
701⁄2 even though the employee has not
retired or attained the normal retirement
age under the plan as of the date on

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Federal Register / Vol. 67, No. 74 / Wednesday, April 17, 2002 / Rules and Regulations
which such distributions commence.
This rule applies without regard to
whether the employee is a 5-percent
owner with respect to the plan year
ending in the calendar year in which
distributions commence.
Q–10. Is the distribution of an annuity
contract a distribution for purposes of
section 401(a)(9)?
A–10. No, the distribution of an
annuity contract is not a distribution for
purposes of section 401(a)(9).
Q–11. Will a payment by a plan after
the death of an employee fail to be
treated as a distribution for purposes of
section 401(a)(9) solely because it is
made to an estate or a trust?
A–11. A payment by a plan after the
death of an employee will not fail to be
treated as a distribution for purposes of
section 401(a)(9) solely because it is
made to an estate or a trust. As a result,
the estate or trust which receives a
payment from a plan after the death of
an employee need not distribute the
amount of such payment to the
beneficiaries of the estate or trust in
accordance with section 401(a)(9)(B).
Pursuant to A–3 of § 1.401(a)(9)–4, an
estate may not be a designated
beneficiary. Thus, pursuant to A–4 of
§ 1.401(a)(9)–3, distribution to the estate
must satisfy the 5-year rule in section
401(a)(9)(B)(iii) if the distribution to the
employee had not begun (as defined in
A–6 of § 1.401(a)(9)–2) as of the
employee’s date of death. However, see
A–5 and A–6 of § 1.401(a)(9)–4 for
provisions under which beneficiaries of
a trust with respect to the trust’s interest
in an employee’s benefit are treated as
having been designated as beneficiaries
of the employee under the plan.
Q–12. Will a plan fail to satisfy
section 411(d)(6) if the plan is amended
to eliminate the availability of an
optional form of benefit to the extent
that the optional form does not satisfy
section 401(a)(9)?
A–12. No, pursuant to section
411(d)(6)(B), a plan will not fail to
satisfy section 411(d)(6) merely because
the plan is amended to eliminate the
availability of an optional form of
benefit to the extent that the optional
form does not satisfy section 401(a)(9).
(See also A–3 of § 1.401(a)(9)–1, which
requires a plan to provide that,
notwithstanding any other plan
provision, it will not distribute benefits
under any option that does not satisfy
section 401(a)(9).)
Q–13. Is a plan disqualified merely
because it pays benefits under a
designation made before January 1,
1984, in accordance with section
242(b)(2) of the Tax Equity and Fiscal
Responsibility Act (TEFRA)?

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16:21 Apr 16, 2002

Jkt 197001

A–13. No, even though the
distribution requirements added by
TEFRA were retroactively repealed by
the Tax Reform Act of 1984 (TRA of
1984), the transitional election rule in
section 242(b) of TEFRA was preserved.
Satisfaction of the spousal consent
requirements of section 417(a) and (e)
(added by the Retirement Equity Act of
1984) will not be considered a
revocation of the pre-1984 designation.
However, sections 401(a)(11) and 417
must be satisfied with respect to any
distribution subject to those sections.
The election provided in section 242(b)
of TEFRA is hereafter referred to as a
section 242(b)(2) election.
Q–14. If an amount is transferred from
one plan (transferor plan) to another
plan (transferee plan), may the
transferee plan distribute the amount
transferred in accordance with a section
242(b)(2) election made under either the
transferor plan or under the transferee
plan?
A–14. (a) If an amount is transferred
from one plan (transferor plan) to
another plan (transferee plan), the
amount transferred may be distributed
in accordance with a section 242(b)(2)
election made under the transferor plan
if the employee did not elect to have the
amount transferred and if the amount
transferred is separately accounted for
by the transferee plan. However, only
the benefit attributable to the amount
transferred, plus earnings thereon, may
be distributed in accordance with the
section 242(b)(2) election made under
the transferor plan. If the employee
elected to have the amount transferred,
the transfer will be treated as a
distribution and rollover of the amount
transferred for purposes of this section.
(b) In the case in which an amount is
transferred from one plan to another
plan, the amount transferred may not be
distributed in accordance with a section
242(b)(2) election made under the
transferee plan. If a section 242(b)(2)
election was made under the transferee
plan, the amount transferred must be
separately accounted for. If the amount
transferred is not separately accounted
for under the transferee plan, the section
242(b)(2) election under the transferee
plan is revoked and section 401(a)(9)
will apply to subsequent distributions
by the transferee plan.
(c) A merger, spinoff, or
consolidation, as defined in § 1.414(l)–
1(b), will be treated as a transfer for
purposes of the section 242(b)(2)
election.
Q–15. If an amount is distributed by
one plan (distributing plan) and rolled
over into another plan (receiving plan),
may the receiving plan distribute the
amount rolled over in accordance with

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Fmt 4701

Sfmt 4700

19011

a section 242(b)(2) election made under
either the distributing plan or the
receiving plan?
A–15. No, if an amount is distributed
by one plan (distributing plan) and
rolled over into another plan (receiving
plan), the receiving plan must distribute
the amount rolled over in accordance
with section 401(a)(9) whether or not
the employee made a section 242(b)(2)
election under the distributing plan.
Further, if the amount rolled over was
not distributed in accordance with the
election, the election under the
distributing plan is revoked and section
401(a)(9) will apply to all subsequent
distributions by the distributing plan.
Finally, if the employee made a section
242(b)(2) election under the receiving
plan and such election is still in effect,
the amount rolled over must be
separately accounted for under the
receiving plan and distributed in
accordance with section 401(a)(9). If
amounts rolled over are not separately
accounted for, any section 242(b)(2)
election under the receiving plan is
revoked and section 401(a)(9) will apply
to subsequent distributions by the
receiving plan.
Q–16. May a section 242(b)(2) election
be revoked after the date by which
distributions are required to commence
in order to satisfy section 401(a)(9) and
this section of the regulations?
A–16. Yes, a section 242(b)(2) election
may be revoked after the date by which
distributions are required to commence
in order to satisfy section 401(a)(9) and
this section of the regulations. However,
if the section 242(b)(2) election is
revoked after the date by which
distributions are required to commence
in order to satisfy section 401(a)(9) and
this section of the regulations and the
total amount of the distributions which
would have been required to be made
prior to the date of the revocation in
order to satisfy section 401(a)(9), but for
the section 242(b)(2) election, have not
been made, 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 was required to
have been distributed to satisfy the
requirements of section 401(a)(9) and
continue distributions in accordance
with such requirements.
§ 1.401(a)(9)–9 Life expectancy and
distribution period tables.

Q–1. What is the life expectancy for
an individual for purposes of
determining required minimum
distributions under section 401(a)(9)?
A–1 The following table, referred to as
the Single Life Table, is used for

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19012

Federal Register / Vol. 67, No. 74 / Wednesday, April 17, 2002 / Rules and Regulations

determining the life expectancy of an
individual:

SINGLE LIFE TABLE—Continued

Age
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62

Life
expectancy

..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................

VerDate 112000

16:21 Apr 16, 2002

Life
expectancy

Age

SINGLE LIFE TABLE

82.4
81.6
80.6
79.7
78.7
77.7
76.7
75.8
74.8
73.8
72.8
71.8
70.8
69.9
68.9
67.9
66.9
66.0
65.0
64.0
63.0
62.1
61.1
60.1
59.1
58.2
57.2
56.2
55.3
54.3
53.3
52.4
51.4
50.4
49.4
48.5
47.5
46.5
45.6
44.6
43.6
42.7
41.7
40.7
39.8
38.8
37.9
37.0
36.0
35.1
34.2
33.3
32.3
31.4
30.5
29.6
28.7
27.9
27.0
26.1
25.2
24.4
23.5

Jkt 197001

63 ..............................................
64 ..............................................
65 ..............................................
66 ..............................................
67 ..............................................
68 ..............................................
69 ..............................................
70 ..............................................
71 ..............................................
72 ..............................................
73 ..............................................
74 ..............................................
75 ..............................................
76 ..............................................
77 ..............................................
78 ..............................................
79 ..............................................
80 ..............................................
81 ..............................................
82 ..............................................
83 ..............................................
84 ..............................................
85 ..............................................
86 ..............................................
87 ..............................................
88 ..............................................
89 ..............................................
90 ..............................................
91 ..............................................
92 ..............................................
93 ..............................................
94 ..............................................
95 ..............................................
96 ..............................................
97 ..............................................
98 ..............................................
99 ..............................................
100 ............................................
101 ............................................
102 ............................................
103 ............................................
104 ............................................
105 ............................................
106 ............................................
107 ............................................
108 ............................................
109 ............................................
110 ............................................
111+ ..........................................

22.7
21.8
21.0
20.2
19.4
18.6
17.8
17.0
16.3
15.5
14.8
14.1
13.4
12.7
12.1
11.4
10.8
10.2
9.7
9.1
8.6
8.1
7.6
7.1
6.7
6.3
5.9
5.5
5.2
4.9
4.6
4.3
4.1
3.8
3.6
3.4
3.1
2.9
2.7
2.5
2.3
2.1
1.9
1.7
1.5
1.4
1.2
1.1
1.0

Q–2. What is the applicable
distribution period for an individual
account for purposes of determining
required minimum distributions during
an employee’s lifetime under section
401(a)(9)?
A–2. Table for determining
distribution period. The following table,
referred to as the Uniform Lifetime
Table, is used for determining the
distribution period for lifetime
distributions to an employee in
situations in which the employee’s
spouse is either not the sole designated
beneficiary or is the sole designated

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Fmt 4701

beneficiary but is not more than 10
years younger than the employee.

Sfmt 4700

UNIFORM LIFETIME TABLE
Age of employee
70 ..........................................
71 ..........................................
72 ..........................................
73 ..........................................
74 ..........................................
75 ..........................................
76 ..........................................
77 ..........................................
78 ..........................................
79 ..........................................
80 ..........................................
81 ..........................................
82 ..........................................
83 ..........................................
84 ..........................................
85 ..........................................
86 ..........................................
87 ..........................................
88 ..........................................
89 ..........................................
90 ..........................................
91 ..........................................
92 ..........................................
93 ..........................................
94 ..........................................
95 ..........................................
96 ..........................................
97 ..........................................
98 ..........................................
99 ..........................................
100 ........................................
101 ........................................
102 ........................................
103 ........................................
104 ........................................
105 ........................................
106 ........................................
107 ........................................
108 ........................................
109 ........................................
110 ........................................
111 ........................................
112 ........................................
113 ........................................
114 ........................................
115+ ......................................

Distribution
period
27.4
26.5
25.6
24.7
23.8
22.9
22.0
21.2
20.3
19.5
18.7
17.9
17.1
16.3
15.5
14.8
14.1
13.4
12.7
12.0
11.4
10.8
10.2
9.6
9.1
8.6
8.1
7.6
7.1
6.7
6.3
5.9
5.5
5.2
4.9
4.5
4.2
3.9
3.7
3.4
3.1
2.9
2.6
2.4
2.1
1.9

Q–3. What is the joint life and last
survivor expectancy of an individual
and beneficiary for purposes of
determining required minimum
distributions under section 401(a)(9)?
A–3. The following table, referred to
as the Joint and Last Survivor Table, is
used for determining the joint and last
survivor life expectancy of two
individuals:

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Federal Register / Vol. 67, No. 74 / Wednesday, April 17, 2002 / Rules and Regulations

19013

JOINT AND LAST SURVIVOR TABLE
Ages

0

0 ...............................
1 ...............................
2 ...............................
3 ...............................
4 ...............................
5 ...............................
6 ...............................
7 ...............................
8 ...............................
9 ...............................
10 .............................
11 .............................
12 .............................
13 .............................
14 .............................
15 .............................
16 .............................
17 .............................
18 .............................
19 .............................
20 .............................
21 .............................
22 .............................
23 .............................
24 .............................
25 .............................
26 .............................
27 .............................
28 .............................
29 .............................
30 .............................
31 .............................
32 .............................
33 .............................
34 .............................
35 .............................
36 .............................
37 .............................
38 .............................
39 .............................
40 .............................
41 .............................
42 .............................
43 .............................
44 .............................
45 .............................
46 .............................
47 .............................
48 .............................
49 .............................
50 .............................
51 .............................
52 .............................
53 .............................
54 .............................
55 .............................
56 .............................
57 .............................
58 .............................
59 .............................
60 .............................
61 .............................
62 .............................
63 .............................
64 .............................
65 .............................
66 .............................
67 .............................
68 .............................
69 .............................
70 .............................
71 .............................

VerDate 112000

1
90.0
89.5
89.0
88.6
88.2
87.8
87.4
87.1
86.8
86.5
86.2
85.9
85.7
85.4
85.2
85.0
84.9
84.7
84.5
84.4
84.3
84.1
84.0
83.9
83.8
83.7
83.6
83.6
83.5
83.4
83.4
83.3
83.3
83.2
83.2
83.1
83.1
83.0
83.0
83.0
82.9
82.9
82.9
82.9
82.8
82.8
82.8
82.8
82.8
82.7
82.7
82.7
82.7
82.7
82.7
82.6
82.6
82.6
82.6
82.6
82.6
82.6
82.6
82.6
82.5
82.5
82.5
82.5
82.5
82.5
82.5
82.5

16:21 Apr 16, 2002

Jkt 197001

2
89.5
89.0
88.5
88.1
87.6
87.2
86.8
86.5
86.1
85.8
85.5
85.2
84.9
84.7
84.5
84.3
84.1
83.9
83.7
83.6
83.4
83.3
83.2
83.1
83.0
82.9
82.8
82.7
82.6
82.6
82.5
82.4
82.4
82.3
82.3
82.2
82.2
82.2
82.1
82.1
82.1
82.0
82.0
82.0
81.9
81.9
81.9
81.9
81.9
81.8
81.8
81.8
81.8
81.8
81.8
81.8
81.7
81.7
81.7
81.7
81.7
81.7
81.7
81.7
81.7
81.7
81.7
81.7
81.6
81.6
81.6
81.6

PO 00000

3
89.0
88.5
88.0
87.5
87.1
86.6
86.2
85.8
85.5
85.1
84.8
84.5
84.2
84.0
83.7
83.5
83.3
83.1
82.9
82.7
82.6
82.4
82.3
82.2
82.1
82.0
81.9
81.8
81.7
81.6
81.6
81.5
81.5
81.4
81.3
81.3
81.3
81.2
81.2
81.1
81.1
81.1
81.1
81.0
81.0
81.0
81.0
80.9
80.9
80.9
80.9
80.9
80.9
80.8
80.8
80.8
80.8
80.8
80.8
80.8
80.8
80.8
80.7
80.7
80.7
80.7
80.7
80.7
80.7
80.7
80.7
80.7

Frm 00027

4
88.6
88.1
87.5
87.0
86.5
86.1
85.6
85.2
84.8
84.5
84.1
83.8
83.5
83.2
83.0
82.7
82.5
82.3
82.1
81.9
81.8
81.6
81.5
81.3
81.2
81.1
81.0
80.9
80.8
80.7
80.7
80.6
80.5
80.5
80.4
80.4
80.3
80.3
80.2
80.2
80.2
80.1
80.1
80.1
80.0
80.0
80.0
80.0
80.0
79.9
79.9
79.9
79.9
79.9
79.9
79.8
79.8
79.8
79.8
79.8
79.8
79.8
79.8
79.8
79.8
79.8
79.7
79.7
79.7
79.7
79.7
79.7

Fmt 4701

5
88.2
87.6
87.1
86.5
86.0
85.5
85.1
84.6
84.2
83.8
83.5
83.1
82.8
82.5
82.2
82.0
81.7
81.5
81.3
81.1
80.9
80.8
80.6
80.5
80.3
80.2
80.1
80.0
79.9
79.8
79.7
79.7
79.6
79.5
79.5
79.4
79.4
79.3
79.3
79.2
79.2
79.2
79.1
79.1
79.1
79.1
79.0
79.0
79.0
79.0
79.0
78.9
78.9
78.9
78.9
78.9
78.9
78.9
78.8
78.8
78.8
78.8
78.8
78.8
78.8
78.8
78.8
78.8
78.8
78.8
78.8
78.7

Sfmt 4700

6
87.8
87.2
86.6
86.1
85.5
85.0
84.5
84.1
83.6
83.2
82.8
82.5
82.1
81.8
81.5
81.2
81.0
80.7
80.5
80.3
80.1
79.9
79.8
79.6
79.5
79.3
79.2
79.1
79.0
78.9
78.8
78.8
78.7
78.6
78.5
78.5
78.4
78.4
78.3
78.3
78.3
78.2
78.2
78.2
78.1
78.1
78.1
78.0
78.0
78.0
78.0
78.0
78.0
77.9
77.9
77.9
77.9
77.9
77.9
77.9
77.8
77.8
77.8
77.8
77.8
77.8
77.8
77.8
77.8
77.8
77.8
77.8

7
87.4
86.8
86.2
85.6
85.1
84.5
84.0
83.5
83.1
82.6
82.2
81.8
81.5
81.1
80.8
80.5
80.2
80.0
79.7
79.5
79.3
79.1
78.9
78.8
78.6
78.5
78.3
78.2
78.1
78.0
77.9
77.8
77.8
77.7
77.6
77.6
77.5
77.4
77.4
77.3
77.3
77.3
77.2
77.2
77.2
77.1
77.1
77.1
77.1
77.0
77.0
77.0
77.0
77.0
76.9
76.9
76.9
76.9
76.9
76.9
76.9
76.9
76.9
76.8
76.8
76.8
76.8
76.8
76.8
76.8
76.8
76.8

E:\FR\FM\17APR2.SGM

pfrm02

8
87.1
86.5
85.8
85.2
84.6
84.1
83.5
83.0
82.5
82.1
81.6
81.2
80.8
80.5
80.1
79.8
79.5
79.2
79.0
78.7
78.5
78.3
78.1
77.9
77.8
77.6
77.5
77.4
77.2
77.1
77.0
76.9
76.8
76.8
76.7
76.6
76.6
76.5
76.4
76.4
76.4
76.3
76.3
76.2
76.2
76.2
76.1
76.1
76.1
76.1
76.0
76.0
76.0
76.0
76.0
76.0
75.9
75.9
75.9
75.9
75.9
75.9
75.9
75.9
75.9
75.8
75.8
75.8
75.8
75.8
75.8
75.8

PsN: 17APR2

9
86.8
86.1
85.5
84.8
84.2
83.6
83.1
82.5
82.0
81.6
81.1
80.7
80.2
79.9
79.5
79.1
78.8
78.5
78.2
78.0
77.7
77.5
77.3
77.1
76.9
76.8
76.6
76.5
76.4
76.2
76.1
76.0
75.9
75.9
75.8
75.7
75.6
75.6
75.5
75.5
75.4
75.4
75.3
75.3
75.2
75.2
75.2
75.2
75.1
75.1
75.1
75.1
75.0
75.0
75.0
75.0
75.0
75.0
74.9
74.9
74.9
74.9
74.9
74.9
74.9
74.9
74.9
74.9
74.8
74.8
74.8
74.8

86.5
85.8
85.1
84.5
83.8
83.2
82.6
82.1
81.6
81.0
80.6
80.1
79.7
79.2
78.9
78.5
78.1
77.8
77.5
77.3
77.0
76.8
76.5
76.3
76.1
75.9
75.8
75.6
75.5
75.4
75.2
75.1
75.0
74.9
74.9
74.8
74.7
74.6
74.6
74.5
74.5
74.4
74.4
74.3
74.3
74.3
74.2
74.2
74.2
74.1
74.1
74.1
74.1
74.0
74.0
74.0
74.0
74.0
74.0
74.0
73.9
73.9
73.9
73.9
73.9
73.9
73.9
73.9
73.9
73.9
73.9
73.8

19014

Federal Register / Vol. 67, No. 74 / Wednesday, April 17, 2002 / Rules and Regulations
JOINT AND LAST SURVIVOR TABLE—Continued

Ages

0

72 .............................
73 .............................
74 .............................
75 .............................
76 .............................
77 .............................
78 .............................
79 .............................
80 .............................
81 .............................
82 .............................
83 .............................
84 .............................
85 .............................
86 .............................
87 .............................
88 .............................
89 .............................
90 .............................
91 .............................
92 .............................
93 .............................
94 .............................
95 .............................
96 .............................
97 .............................
98 .............................
99 .............................
100 ...........................
101 ...........................
102 ...........................
103 ...........................
104 ...........................
105 ...........................
106 ...........................
107 ...........................
108 ...........................
109 ...........................
110 ...........................
111 ...........................
112 ...........................
113 ...........................
114 ...........................
115+ .........................
Ages
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33

82.5
82.5
82.5
82.5
82.5
82.5
82.5
82.5
82.5
82.4
82.4
82.4
82.4
82.4
82.4
82.4
82.4
82.4
82.4
82.4
82.4
82.4
82.4
82.4
82.4
82.4
82.4
82.4
82.4
82.4
82.4
82.4
82.4
82.4
82.4
82.4
82.4
82.4
82.4
82.4
82.4
82.4
82.4
82.4
10

.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................

VerDate 112000

1
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
11

80.0
79.6
79.1
78.7
78.2
77.9
77.5
77.2
76.8
76.5
76.3
76.0
75.8
75.5
75.3
75.1
75.0
74.8
74.6
74.5
74.4
74.3
74.1
74.0

16:21 Apr 16, 2002

2

Jkt 197001

3
80.7
80.7
80.7
80.7
80.7
80.7
80.7
80.7
80.7
80.7
80.7
80.7
80.7
80.6
80.6
80.6
80.6
80.6
80.6
80.6
80.6
80.6
80.6
80.6
80.6
80.6
80.6
80.6
80.6
80.6
80.6
80.6
80.6
80.6
80.6
80.6
80.6
80.6
80.6
80.6
80.6
80.6
80.6
80.6

12

79.6
79.0
78.6
78.1
77.7
77.3
76.9
76.5
76.2
75.8
75.5
75.3
75.0
74.8
74.5
74.3
74.1
74.0
73.8
73.6
73.5
73.4
73.3
73.2

PO 00000

79.1
78.6
78.1
77.6
77.1
76.7
76.3
75.9
75.5
75.2
74.8
74.5
74.3
74.0
73.8
73.5
73.3
73.1
73.0
72.8
72.7
72.5
72.4
72.3

Frm 00028

4
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7
79.7

13
78.7
78.1
77.6
77.1
76.6
76.1
75.7
75.3
74.9
74.5
74.2
73.8
73.5
73.3
73.0
72.8
72.5
72.3
72.2
72.0
71.8
71.7
71.5
71.4

Fmt 4701

5
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7
78.7

14
78.2
77.7
77.1
76.6
76.1
75.6
75.1
74.7
74.3
73.9
73.5
73.2
72.9
72.6
72.3
72.0
71.8
71.6
71.3
71.2
71.0
70.8
70.7
70.5

Sfmt 4700

6
77.8
77.8
77.8
77.8
77.8
77.7
77.7
77.7
77.7
77.7
77.7
77.7
77.7
77.7
77.7
77.7
77.7
77.7
77.7
77.7
77.7
77.7
77.7
77.7
77.7
77.7
77.7
77.7
77.7
77.7
77.7
77.7
77.7
77.7
77.7
77.7
77.7
77.7
77.7
77.7
77.7
77.7
77.7
77.7

15
77.9
77.3
76.7
76.1
75.6
75.1
74.6
74.1
73.7
73.3
72.9
72.5
72.2
71.9
71.6
71.3
71.0
70.8
70.6
70.4
70.2
70.0
69.8
69.7

7
76.8
76.8
76.8
76.8
76.8
76.8
76.8
76.8
76.8
76.8
76.8
76.8
76.8
76.8
76.7
76.7
76.7
76.7
76.7
76.7
76.7
76.7
76.7
76.7
76.7
76.7
76.7
76.7
76.7
76.7
76.7
76.7
76.7
76.7
76.7
76.7
76.7
76.7
76.7
76.7
76.7
76.7
76.7
76.7

16

75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
75.8
17

77.5
76.9
76.3
75.7
75.1
74.6
74.1
73.6
73.1
72.7
72.3
71.9
71.5
71.2
70.9
70.6
70.3
70.0
69.8
69.6
69.4
69.2
69.0
68.8

E:\FR\FM\17APR2.SGM

8

pfrm02

77.2
76.5
75.9
75.3
74.7
74.1
73.6
73.1
72.6
72.1
71.7
71.3
70.9
70.5
70.2
69.9
69.6
69.3
69.0
68.8
68.6
68.4
68.2
68.0

PsN: 17APR2

9
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8
74.8

18
76.8
76.2
75.5
74.9
74.3
73.7
73.1
72.6
72.1
71.6
71.1
70.7
70.3
69.9
69.5
69.2
68.9
68.6
68.3
68.0
67.8
67.6
67.4
67.2

73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
73.8
19
76.5
75.8
75.2
74.5
73.9
73.3
72.7
72.1
71.6
71.1
70.6
70.1
69.7
69.3
68.9
68.5
68.2
67.9
67.6
67.3
67.1
66.8
66.6
66.4

Federal Register / Vol. 67, No. 74 / Wednesday, April 17, 2002 / Rules and Regulations
Ages

10

34 .............................
35 .............................
36 .............................
37 .............................
38 .............................
39 .............................
40 .............................
41 .............................
42 .............................
43 .............................
44 .............................
45 .............................
46 .............................
47 .............................
48 .............................
49 .............................
50 .............................
51 .............................
52 .............................
53 .............................
54 .............................
55 .............................
56 .............................
57 .............................
58 .............................
59 .............................
60 .............................
61 .............................
62 .............................
63 .............................
64 .............................
65 .............................
66 .............................
67 .............................
68 .............................
69 .............................
70 .............................
71 .............................
72 .............................
73 .............................
74 .............................
75 .............................
76 .............................
77 .............................
78 .............................
79 .............................
80 .............................
81 .............................
82 .............................
83 .............................
84 .............................
85 .............................
86 .............................
87 .............................
88 .............................
89 .............................
90 .............................
91 .............................
92 .............................
93 .............................
94 .............................
95 .............................
96 .............................
97 .............................
98 .............................
99 .............................
100 ...........................
101 ...........................
102 ...........................
103 ...........................
104 ...........................
105 ...........................
106 ...........................
107 ...........................

VerDate 112000

11

73.9
73.9
73.8
73.7
73.6
73.6
73.5
73.5
73.4
73.4
73.3
73.3
73.3
73.2
73.2
73.2
73.1
73.1
73.1
73.1
73.1
73.0
73.0
73.0
73.0
73.0
73.0
73.0
72.9
72.9
72.9
72.9
72.9
72.9
72.9
72.9
72.9
72.9
72.9
72.9
72.9
72.8
72.8
72.8
72.8
72.8
72.8
72.8
72.8
72.8
72.8
72.8
72.8
72.8
72.8
72.8
72.8
72.8
72.8
72.8
72.8
72.8
72.8
72.8
72.8
72.8
72.8
72.8
72.8
72.8
72.8
72.8
72.8
72.8

16:21 Apr 16, 2002

Jkt 197001

12

73.0
73.0
72.9
72.8
72.7
72.7
72.6
72.5
72.5
72.4
72.4
72.3
72.3
72.3
72.2
72.2
72.2
72.2
72.1
72.1
72.1
72.1
72.1
72.0
72.0
72.0
72.0
72.0
72.0
72.0
71.9
71.9
71.9
71.9
71.9
71.9
71.9
71.9
71.9
71.9
71.9
71.9
71.9
71.9
71.9
71.9
71.9
71.8
71.8
71.8
71.8
71.8
71.8
71.8
71.8
71.8
71.8
71.8
71.8
71.8
71.8
71.8
71.8
71.8
71.8
71.8
71.8
71.8
71.8
71.8
71.8
71.8
71.8
71.8

PO 00000

72.2
72.1
72.0
71.9
71.8
71.7
71.7
71.6
71.5
71.5
71.4
71.4
71.4
71.3
71.3
71.2
71.2
71.2
71.2
71.1
71.1
71.1
71.1
71.1
71.0
71.0
71.0
71.0
71.0
71.0
71.0
71.0
70.9
70.9
70.9
70.9
70.9
70.9
70.9
70.9
70.9
70.9
70.9
70.9
70.9
70.9
70.9
70.9
70.9
70.9
70.9
70.9
70.9
70.9
70.9
70.9
70.9
70.9
70.9
70.9
70.8
70.8
70.8
70.8
70.8
70.8
70.8
70.8
70.8
70.8
70.8
70.8
70.8
70.8

Frm 00029

13
71.3
71.2
71.1
71.0
70.9
70.8
70.7
70.7
70.6
70.6
70.5
70.5
70.4
70.4
70.3
70.3
70.3
70.2
70.2
70.2
70.2
70.1
70.1
70.1
70.1
70.1
70.0
70.0
70.0
70.0
70.0
70.0
70.0
70.0
70.0
69.9
69.9
69.9
69.9
69.9
69.9
69.9
69.9
69.9
69.9
69.9
69.9
69.9
69.9
69.9
69.9
69.9
69.9
69.9
69.9
69.9
69.9
69.9
69.9
69.9
69.9
69.9
69.9
69.9
69.9
69.9
69.9
69.9
69.9
69.9
69.9
69.9
69.9
69.9

Fmt 4701

14
70.4
70.3
70.2
70.1
70.0
69.9
69.8
69.7
69.7
69.6
69.6
69.5
69.5
69.4
69.4
69.3
69.3
69.3
69.2
69.2
69.2
69.2
69.1
69.1
69.1
69.1
69.1
69.1
69.0
69.0
69.0
69.0
69.0
69.0
69.0
69.0
69.0
69.0
69.0
68.9
68.9
68.9
68.9
68.9
68.9
68.9
68.9
68.9
68.9
68.9
68.9
68.9
68.9
68.9
68.9
68.9
68.9
68.9
68.9
68.9
68.9
68.9
68.9
68.9
68.9
68.9
68.9
68.9
68.9
68.9
68.9
68.9
68.9
68.9

Sfmt 4700

15
69.5
69.4
69.3
69.2
69.1
69.0
68.9
68.8
68.8
68.7
68.6
68.6
68.5
68.5
68.4
68.4
68.4
68.3
68.3
68.3
68.2
68.2
68.2
68.2
68.1
68.1
68.1
68.1
68.1
68.1
68.0
68.0
68.0
68.0
68.0
68.0
68.0
68.0
68.0
68.0
68.0
68.0
68.0
68.0
67.9
67.9
67.9
67.9
67.9
67.9
67.9
67.9
67.9
67.9
67.9
67.9
67.9
67.9
67.9
67.9
67.9
67.9
67.9
67.9
67.9
67.9
67.9
67.9
67.9
67.9
67.9
67.9
67.9
67.9

16

17

68.7
68.5
68.4
68.3
68.2
68.1
68.0
67.9
67.8
67.8
67.7
67.6
67.6
67.5
67.5
67.4
67.4
67.4
67.3
67.3
67.3
67.2
67.2
67.2
67.2
67.2
67.1
67.1
67.1
67.1
67.1
67.1
67.1
67.0
67.0
67.0
67.0
67.0
67.0
67.0
67.0
67.0
67.0
67.0
67.0
67.0
67.0
67.0
67.0
67.0
67.0
66.9
66.9
66.9
66.9
66.9
66.9
66.9
66.9
66.9
66.9
66.9
66.9
66.9
66.9
66.9
66.9
66.9
66.9
66.9
66.9
66.9
66.9
66.9

E:\FR\FM\17APR2.SGM

pfrm02

67.8
67.7
67.6
67.4
67.3
67.2
67.1
67.0
66.9
66.8
66.8
66.7
66.6
66.6
66.5
66.5
66.5
66.4
66.4
66.3
66.3
66.3
66.3
66.2
66.2
66.2
66.2
66.2
66.1
66.1
66.1
66.1
66.1
66.1
66.1
66.1
66.0
66.0
66.0
66.0
66.0
66.0
66.0
66.0
66.0
66.0
66.0
66.0
66.0
66.0
66.0
66.0
66.0
66.0
66.0
66.0
66.0
66.0
66.0
66.0
66.0
66.0
66.0
66.0
66.0
66.0
66.0
66.0
66.0
66.0
66.0
66.0
66.0
66.0

PsN: 17APR2

18
67.0
66.8
66.7
66.6
66.4
66.3
66.2
66.1
66.0
65.9
65.9
65.8
65.7
65.7
65.6
65.6
65.5
65.5
65.4
65.4
65.4
65.3
65.3
65.3
65.2
65.2
65.2
65.2
65.2
65.2
65.1
65.1
65.1
65.1
65.1
65.1
65.1
65.1
65.1
65.0
65.0
65.0
65.0
65.0
65.0
65.0
65.0
65.0
65.0
65.0
65.0
65.0
65.0
65.0
65.0
65.0
65.0
65.0
65.0
65.0
65.0
65.0
65.0
65.0
65.0
65.0
65.0
65.0
65.0
65.0
65.0
65.0
65.0
65.0

19015
19
66.2
66.0
65.9
65.7
65.6
65.4
65.3
65.2
65.1
65.0
64.9
64.9
64.8
64.7
64.7
64.6
64.6
64.5
64.5
64.4
64.4
64.4
64.3
64.3
64.3
64.3
64.2
64.2
64.2
64.2
64.2
64.2
64.1
64.1
64.1
64.1
64.1
64.1
64.1
64.1
64.1
64.1
64.1
64.1
64.0
64.0
64.0
64.0
64.0
64.0
64.0
64.0
64.0
64.0
64.0
64.0
64.0
64.0
64.0
64.0
64.0
64.0
64.0
64.0
64.0
64.0
64.0
64.0
64.0
64.0
64.0
64.0
64.0
64.0

19016

Federal Register / Vol. 67, No. 74 / Wednesday, April 17, 2002 / Rules and Regulations

Ages

10

108 ...........................
109 ...........................
110 ...........................
111 ...........................
112 ...........................
113 ...........................
114 ...........................
115+ .........................
Ages
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81

72.8
72.8
72.8
72.8
72.8
72.8
72.8
72.8
20

.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................

VerDate 112000

11
71.8
71.8
71.8
71.8
71.8
71.8
71.8
71.8
21

70.1
69.6
69.1
68.7
68.3
67.9
67.5
67.2
66.9
66.6
66.3
66.1
65.8
65.6
65.4
65.2
65.0
64.9
64.7
64.6
64.4
64.3
64.2
64.1
64.0
64.0
63.9
63.8
63.7
63.7
63.6
63.6
63.5
63.5
63.5
63.4
63.4
63.4
63.3
63.3
63.3
63.3
63.2
63.2
63.2
63.2
63.2
63.2
63.1
63.1
63.1
63.1
63.1
63.1
63.1
63.1
63.1
63.1
63.1
63.1
63.1
63.1

16:21 Apr 16, 2002

12

Jkt 197001

70.8
70.8
70.8
70.8
70.8
70.8
70.8
70.8
22

69.6
69.1
68.6
68.2
67.7
67.3
66.9
66.6
66.2
65.9
65.6
65.3
65.1
64.8
64.6
64.4
64.2
64.0
63.9
63.7
63.6
63.5
63.3
63.2
63.1
63.0
63.0
62.9
62.8
62.8
62.7
62.6
62.6
62.5
62.5
62.5
62.4
62.4
62.4
62.3
62.3
62.3
62.3
62.3
62.2
62.2
62.2
62.2
62.2
62.2
62.2
62.1
62.1
62.1
62.1
62.1
62.1
62.1
62.1
62.1
62.1
62.1

PO 00000

69.1
68.6
68.1
67.9
67.2
66.7
66.3
65.9
65.6
65.2
64.9
64.6
64.3
64.1
63.8
63.6
63.4
63.2
63.0
62.9
62.7
62.6
62.5
62.4
62.2
62.2
62.1
62.0
61.9
61.8
61.8
61.7
61.7
61.6
61.6
61.5
61.5
61.5
61.4
61.4
61.4
61.3
61.3
62.3
61.3
61.3
61.2
61.2
61.2
61.2
61.2
61.2
61.2
61.2
61.2
61.1
61.1
61.1
61.1
61.1
61.1
61.1

Frm 00030

13
69.9
69.9
69.9
69.9
69.9
69.9
69.9
69.9
23
68.7
68.2
67.6
67.1
66.6
77.2
65.7
65.3
64.9
64.6
64.2
63.9
63.6
63.3
63.1
62.8
62.6
62.4
62.2
62.1
61.9
61.7
61.6
61.5
61.4
61.3
61.2
61.1
61.0
60.9
60.8
60.8
60.7
60.7
60.6
60.6
60.5
60.5
60.5
60.4
60.4
60.4
60.4
61.3
60.3
60.3
60.3
60.3
60.2
60.2
60.2
60.2
60.2
60.2
60.2
60.2
60.2
60.2
60.2
60.2
60.1
60.1

Fmt 4701

14
68.9
68.9
68.9
68.9
68.9
68.9
68.9
68.9
24
68.3
67.7
67.2
66.6
66.1
65.6
65.2
64.7
64.3
63.9
63.6
63.2
62.9
62.6
62.3
62.1
61.9
61.6
61.4
61.2
61.1
60.9
60.8
60.6
60.5
60.4
60.3
60.2
60.1
60.0
59.9
59.9
59.8
59.7
59.7
59.6
59.6
59.6
59.5
59.5
59.5
59.4
59.4
60.3
59.4
59.3
59.3
59.3
59.3
59.3
59.3
59.2
59.2
59.2
59.2
59.2
59.2
59.2
59.2
59.2
59.2
59.2

Sfmt 4700

15
67.9
67.9
67.9
67.9
67.9
67.9
67.9
67.9
25
67.9
67.3
66.7
66.2
65.6
65.1
64.6
64.2
63.7
63.3
62.9
62.6
62.2
61.9
61.6
61.4
61.1
60.9
60.6
60.4
60.2
60.1
59.9
59.8
59.6
59.5
59.4
59.3
59.2
59.1
59.0
58.9
58.9
58.8
58.8
58.7
58.7
58.6
58.6
58.5
58.5
58.5
58.4
59.4
58.4
58.4
58.4
58.3
58.3
58.3
58.3
58.3
58.3
58.3
58.2
58.2
58.2
58.2
58.2
58.2
58.2
58.2

16

17

66.9
66.9
66.9
66.9
66.9
66.9
66.9
66.9
26

27

67.5
66.9
66.3
65.7
65.2
64.6
64.1
63.6
63.2
62.8
62.3
62.0
61.6
61.3
60.9
60.6
60.4
60.1
59.9
59.6
59.4
59.3
59.1
58.9
58.8
58.6
58.5
58.4
58.3
58.2
58.1
58.0
58.0
57.9
57.8
57.8
57.7
57.7
57.6
57.6
57.6
57.5
57.5
58.4
57.4
57.4
57.4
57.4
57.4
57.3
57.3
57.3
57.3
57.3
57.3
57.3
57.3
57.3
57.3
57.2
57.2
57.2

E:\FR\FM\17APR2.SGM

66.0
66.0
66.0
66.0
66.0
66.0
66.0
66.0

pfrm02

67.2
66.6
65.9
65.3
64.7
64.2
63.6
63.1
62.7
62.2
61.8
61.4
61.0
60.6
60.3
59.9
59.6
59.4
59.1
58.9
58.7
58.5
58.3
58.1
57.9
57.8
57.7
57.5
57.4
57.3
57.2
57.1
57.1
57.0
56.9
56.8
56.8
56.7
56.7
56.7
56.6
56.6
56.5
57.5
56.5
56.5
56.4
56.4
56.4
56.4
56.4
56.4
56.3
56.3
56.3
56.3
56.3
56.3
56.3
56.3
56.3
56.3

PsN: 17APR2

18
65.0
65.0
65.0
65.0
65.0
65.0
65.0
65.0
28
66.9
66.2
65.6
64.9
64.3
63.7
63.2
62.7
62.1
61.7
61.2
60.8
60.4
60.0
59.6
59.3
69.0
58.7
58.4
58.1
57.9
57.7
57.5
57.3
57.1
56.9
56.8
56.7
56.5
56.4
56.3
56.2
56.1
56.1
56.0
55.9
55.9
55.8
55.8
55.7
55.7
55.6
55.6
56.5
55.5
55.5
55.5
55.5
55.4
55.4
55.4
55.4
55.4
55.4
55.4
55.3
55.3
55.3
55.3
55.3
55.3
55.3

19
64.0
64.0
64.0
64.0
64.0
64.0
64.0
64.0
29
66.6
65.9
65.2
64.6
63.9
63.3
62.8
62.2
61.7
61.2
60.7
60.2
59.8
59.4
59.0
58.6
58.3
58.0
57.7
57.4
57.1
56.9
56.7
56.5
56.3
56.1
56.0
55.8
55.7
55.6
55.4
55.3
55.2
55.2
55.1
55.0
54.9
54.9
54.8
54.8
54.7
54.7
54.7
55.6
54.6
54.6
54.5
54.5
54.5
54.5
54.4
54.4
54.4
54.4
54.4
54.4
54.4
54.4
54.4
54.3
54.3
54.3

Federal Register / Vol. 67, No. 74 / Wednesday, April 17, 2002 / Rules and Regulations
Ages

20

82 .............................
83 .............................
84 .............................
85 .............................
86 .............................
87 .............................
88 .............................
89 .............................
90 .............................
91 .............................
92 .............................
93 .............................
94 .............................
95 .............................
96 .............................
97 .............................
98 .............................
99 .............................
100 ...........................
101 ...........................
102 ...........................
103 ...........................
104 ...........................
105 ...........................
106 ...........................
107 ...........................
108 ...........................
109 ...........................
110 ...........................
111 ...........................
112 ...........................
113 ...........................
114 ...........................
115+ .........................
AGES
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65

63.1
63.1
63.0
63.0
63.0
63.0
63.0
63.0
63.0
63.0
63.0
63.0
63.0
63.0
63.0
60.3
63.0
63.0
63.0
63.0
63.0
63.0
63.0
63.0
63.0
63.0
63.0
63.0
63.0
63.0
63.0
63.0
63.0
63.0
30

.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................

VerDate 112000

21
62.1
62.1
62.1
62.1
62.1
62.1
62.1
62.1
62.1
62.1
62.1
62.1
62.1
62.1
62.1
62.1
62.1
62.1
62.1
62.1
62.1
62.1
62.1
62.1
62.1
62.1
62.1
62.1
62.1
62.1
62.1
62.1
62.1
62.1
31

60.2
59.7
59.2
58.8
58.4
58.0
57.6
57.3
57.0
56.7
56.4
56.1
55.9
55.7
55.5
55.3
55.1
55.0
54.8
54.7
54.6
54.5
54.4
54.3
54.2
54.1
54.0
54.0
53.9
53.8
53.8
53.8
53.7
53.7
53.6
53.6

16:21 Apr 16, 2002

22

Jkt 197001

61.1
61.1
61.1
61.1
61.1
61.1
61.1
61.1
61.1
61.1
61.1
61.1
61.1
61.1
61.1
61.1
61.1
61.1
61.1
61.1
61.1
61.1
61.1
61.1
61.1
61.1
61.1
61.1
61.1
61.1
61.1
61.1
61.1
61.1
32

59.7
59.2
58.7
58.2
57.8
57.4
57.0
56.6
56.3
56.0
55.7
55.4
55.2
54.9
54.7
54.5
54.3
54.1
54.0
53.8
53.7
53.6
53.5
53.4
53.3
53.2
53.1
53.0
53.0
52.9
52.9
52.8
52.8
52.7
52.7
52.7

PO 00000

59.2
58.7
58.2
57.7
57.2
56.8
56.4
56.0
55.6
55.3
55.0
54.7
54.4
54.2
53.9
53.7
53.5
53.3
53.2
53.0
52.9
52.7
52.6
52.5
52.4
52.3
52.2
52.1
52.1
52.0
51.9
51.9
51.8
51.8
51.8
51.7

Frm 00031

23
60.1
60.1
60.1
60.1
60.1
60.1
60.1
60.1
60.1
60.1
60.1
60.1
60.1
60.1
60.1
60.1
60.1
60.1
60.1
60.1
60.1
60.1
60.1
60.1
60.1
60.1
60.1
60.1
60.1
60.1
60.1
60.1
60.1
60.1
33
58.8
58.2
57.7
57.2
56.7
56.2
55.8
55.4
55.0
54.7
54.3
54.0
53.7
53.4
53.2
52.9
52.7
52.5
52.3
52.2
52.0
51.9
51.7
51.6
51.5
51.4
51.3
51.2
51.2
51.1
51.0
51.0
50.9
50.9
50.8
50.8

Fmt 4701

24
59.2
59.2
59.2
59.2
59.2
59.2
59.2
59.1
59.1
59.1
59.1
59.1
59.1
59.1
59.1
59.1
59.1
59.1
59.1
59.1
59.1
59.1
59.1
59.1
59.1
59.1
59.1
59.1
59.1
59.1
59.1
59.1
59.1
59.1
34
58.4
57.8
57.2
56.7
56.2
55.7
55.3
54.8
54.4
54.0
53.7
53.3
53.0
52.7
52.4
52.2
52.0
51.7
51.5
51.4
51.2
51.0
50.9
50.8
50.6
50.5
50.4
50.3
50.3
50.2
50.1
50.0
50.0
49.9
49.9
49.8

Sfmt 4700

25
58.2
58.2
58.2
58.2
58.2
58.2
58.2
58.2
58.2
58.2
58.2
58.2
58.2
58.2
58.2
58.2
58.2
58.2
58.2
58.2
58.2
58.2
58.2
58.2
58.2
58.2
58.2
58.2
58.2
58.2
58.2
58.2
58.2
58.2
35
58.0
57.4
56.8
56.2
55.7
55.2
54.7
54.3
53.8
53.4
53.0
52.7
52.3
52.0
51.7
51.5
51.2
51.0
50.8
50.6
50.4
50.2
50.0
49.9
49.8
49.7
49.5
49.4
49.4
49.3
49.2
49.1
49.1
49.0
48.9
48.9

26

27

57.2
57.2
57.2
57.2
57.2
57.2
57.2
57.2
57.2
57.2
57.2
57.2
57.2
57.2
57.2
57.2
57.2
57.2
57.2
57.2
57.2
57.2
57.2
57.2
57.2
57.2
57.2
57.2
57.2
57.2
57.2
57.2
57.2
57.2
36

37

57.6
57.0
56.4
55.8
55.3
54.7
54.2
53.7
53.3
52.8
52.4
52.0
51.7
51.3
51.0
50.7
50.5
50.2
50.0
49.8
49.6
49.4
49.2
49.1
48.9
48.8
48.7
48.6
48.5
48.4
48.3
48.2
48.1
48.1
48.0
48.0

E:\FR\FM\17APR2.SGM

56.3
56.3
56.3
56.3
56.2
56.2
56.2
56.2
56.2
56.2
56.2
56.2
56.2
56.2
56.2
56.2
56.2
56.2
56.2
56.2
56.2
56.2
56.2
56.2
56.2
56.2
56.2
56.2
56.2
56.2
56.2
56.2
56.2
56.2

pfrm02

57.3
56.6
56.0
55.4
54.8
54.3
53.7
53.2
52.7
52.3
51.8
51.4
51.1
50.7
50.4
50.0
49.8
49.5
49.2
49.0
48.8
48.6
48.4
48.2
48.1
47.9
47.8
47.7
47.6
47.5
47.4
47.3
47.2
47.2
47.1
47.0

PsN: 17APR2

28
55.3
55.3
55.3
55.3
55.3
55.3
55.3
55.3
55.3
55.3
55.3
55.3
55.3
55.3
55.3
55.3
55.3
55.3
55.3
55.3
55.3
55.3
55.3
55.3
55.3
55.3
55.3
55.3
55.3
55.3
55.3
55.3
55.3
55.3
38
57.0
56.3
55.6
55.0
54.4
53.8
53.3
52.7
52.2
51.7
51.3
50.9
50.4
50.1
49.7
49.4
49.1
48.8
48.5
48.2
48.0
47.8
47.6
47.4
47.2
47.1
47.0
46.8
46.7
46.6
46.5
46.4
46.3
46.3
46.2
46.1

19017
29
54.3
54.3
54.3
54.3
54.3
54.3
54.3
54.3
54.3
54.3
54.3
54.3
54.3
54.3
54.3
54.3
54.3
54.3
54.3
54.3
54.3
54.3
54.3
54.3
54.3
54.3
54.3
54.3
54.3
54.3
54.3
54.3
54.3
54.3
39
56.7
56.0
55.3
54.7
54.0
53.4
52.8
52.3
51.7
51.2
50.8
50.3
49.9
49.5
49.1
48.7
48.4
48.1
47.8
47.5
47.3
47.0
46.8
46.6
46.4
46.3
46.1
46.0
45.8
45.7
45.6
45.5
45.4
45.3
45.3
45.2

19018

Federal Register / Vol. 67, No. 74 / Wednesday, April 17, 2002 / Rules and Regulations

Ages

30

66 .............................
67 .............................
68 .............................
69 .............................
70 .............................
71 .............................
72 .............................
73 .............................
74 .............................
75 .............................
76 .............................
77 .............................
78 .............................
79 .............................
80 .............................
81 .............................
82 .............................
83 .............................
84 .............................
85 .............................
86 .............................
87 .............................
88 .............................
89 .............................
90 .............................
91 .............................
92 .............................
93 .............................
94 .............................
95 .............................
96 .............................
97 .............................
98 .............................
99 .............................
100 ...........................
101 ...........................
102 ...........................
103 ...........................
104 ...........................
105 ...........................
106 ...........................
107 ...........................
108 ...........................
109 ...........................
110 ...........................
111 ...........................
112 ...........................
113 ...........................
114 ...........................
115+ .........................
Ages
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59

53.6
53.6
53.5
53.5
53.5
53.5
53.5
53.4
53.4
53.4
53.4
53.4
53.4
53.4
53.4
53.4
53.4
53.4
53.4
53.3
53.3
53.3
53.3
53.3
53.3
53.3
53.3
53.3
53.3
53.3
53.3
53.3
53.3
53.3
53.3
53.3
53.3
53.3
53.3
53.3
53.3
53.3
53.3
53.3
53.3
53.3
53.3
53.3
53.3
53.3
40

.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................

VerDate 112000

31
52.6
52.6
52.6
52.6
52.5
52.5
52.5
52.5
52.5
52.5
52.4
52.4
52.4
52.4
52.4
52.4
52.4
52.4
52.4
52.4
52.4
52.4
52.4
52.4
52.4
52.4
52.4
52.4
52.4
52.4
52.4
52.4
52.4
52.4
52.4
52.4
52.4
52.4
52.4
52.4
52.4
52.4
52.4
52.4
52.4
52.4
52.4
52.4
52.4
52.4
41

50.2
49.8
49.3
48.9
48.5
48.1
47.7
47.4
47.1
46.8
46.5
46.3
46.0
45.8
45.6
45.5
45.3
45.1
45.0
44.9

17:00 Apr 16, 2002

32

Jkt 197001

51.7
51.7
51.6
51.6
51.6
51.6
51.5
51.5
51.5
51.5
51.5
51.5
51.5
51.5
51.4
51.4
51.4
51.4
51.4
51.4
51.4
51.4
51.4
51.4
51.4
51.4
51.4
51.4
51.4
51.4
51.4
51.4
51.4
51.4
51.4
51.4
51.4
51.4
51.4
51.4
51.4
51.4
51.4
51.4
51.4
51.4
51.4
51.4
51.4
51.4
42

49.8
49.3
48.8
48.3
47.9
47.5
47.1
46.7
46.4
46.1
45.8
45.5
45.3
45.1
44.8
44.7
44.5
44.3
44.2
44.0

PO 00000

49.3
48.8
48.3
47.8
47.3
46.9
46.5
46.1
45.8
45.4
45.1
44.8
44.6
44.3
44.1
43.9
43.7
43.5
43.3
43.2

Frm 00032

33
50.7
50.7
50.7
50.6
50.6
50.6
50.6
50.6
50.5
50.5
50.5
50.5
50.5
50.5
50.5
50.5
50.5
50.5
50.5
50.4
50.4
50.4
50.4
50.4
50.4
50.4
50.4
50.4
50.4
50.4
50.4
50.4
50.4
50.4
50.4
50.4
50.4
50.4
50.4
50.4
50.4
50.4
50.4
50.4
50.4
50.4
50.4
50.4
50.4
50.4
43
48.9
48.3
47.8
47.3
46.8
46.3
45.9
45.5
45.1
44.8
44.4
44.1
43.8
43.6
43.3
43.1
42.9
42.7
42.5
42.4

Fmt 4701

34
49.8
49.8
49.7
49.7
49.7
49.6
49.6
49.6
49.6
49.6
49.6
49.5
49.5
49.5
49.5
49.5
49.5
49.5
49.5
49.5
49.5
49.5
49.5
49.5
49.5
49.5
49.5
49.5
49.5
49.5
49.5
49.5
49.5
49.5
49.5
49.5
49.5
49.5
49.5
49.4
49.4
49.4
49.4
49.4
49.4
49.4
49.4
49.4
49.4
49.4
44
48.5
47.9
47.3
46.8
46.3
45.8
45.4
44.9
44.5
44.2
43.8
43.5
43.2
42.9
42.6
42.4
42.1
41.9
41.7
41.5

Sfmt 4700

35
48.9
48.8
48.8
48.7
48.7
48.7
48.7
48.6
48.6
48.6
48.6
48.6
48.6
48.6
48.5
48.5
48.5
48.5
48.5
48.5
48.5
48.5
48.5
48.5
48.5
48.5
48.5
48.5
48.5
48.5
48.5
48.5
48.5
48.5
48.5
48.5
48.5
48.5
48.5
48.5
48.5
48.5
48.5
48.5
48.5
48.5
48.5
48.5
48.5
48.5
45
48.1
47.5
46.9
46.3
45.8
45.3
44.8
44.4
44.0
43.6
43.2
42.8
42.5
42.2
41.9
41.6
41.4
41.2
40.9
40.7

36

37

47.9
47.9
47.8
47.8
47.8
47.7
47.7
47.7
47.7
47.7
47.6
47.6
47.6
47.6
47.6
47.6
47.6
47.6
47.6
47.5
47.5
47.5
47.5
47.5
47.5
47.5
47.5
47.5
47.5
47.5
47.5
47.5
47.5
47.5
47.5
47.5
47.5
47.5
47.5
47.5
47.5
47.5
47.5
47.5
47.5
47.5
47.5
47.5
47.5
47.5
46

47

47.7
47.1
46.5
45.9
45.4
44.8
44.3
43.9
43.4
43.0
42.6
42.2
41.8
41.5
41.2
40.9
40.7
40.4
40.2
40.0

E:\FR\FM\17APR2.SGM

47.0
46.9
46.9
46.9
46.8
46.8
46.8
46.7
46.7
46.7
46.7
46.7
46.6
46.6
46.6
46.6
46.6
46.6
46.6
46.6
46.6
46.6
46.6
46.6
46.6
46.6
46.6
46.6
46.6
46.5
46.5
46.5
46.5
46.5
46.5
46.5
46.5
46.5
46.5
46.5
46.5
46.5
46.5
46.5
46.5
46.5
46.5
46.5
46.5
46.5

pfrm01

47.4
46.7
46.1
45.5
44.9
44.4
43.9
43.4
42.9
42.4
42.0
41.6
41.2
40.9
40.5
40.2
40.0
39.7
39.4
39.2

PsN: 17APR2

38
46.1
46.0
46.0
45.9
45.9
45.9
45.8
45.8
45.8
45.7
45.7
45.7
45.7
45.7
45.7
45.7
45.6
45.6
45.6
45.6
45.6
45.6
45.6
45.6
45.6
45.6
45.6
45.6
45.6
45.6
45.6
45.6
45.6
45.6
45.6
45.6
45.6
45.6
45.6
45.6
45.6
45.6
45.6
45.6
45.6
45.6
45.6
45.6
45.6
45.6
48
47.1
46.4
45.8
45.1
44.5
44.0
43.4
42.9
42.4
41.9
41.5
41.0
40.6
40.3
39.9
39.6
39.3
39.0
38.7
38.5

39
45.1
45.1
45.0
45.0
44.9
44.9
44.9
44.8
44.8
44.8
44.8
44.8
44.7
44.7
44.7
44.7
44.7
44.7
44.7
44.7
44.6
44.6
44.6
44.6
44.6
44.6
44.6
44.6
44.6
44.6
44.6
44.6
44.6
44.6
44.6
44.6
44.6
44.6
44.6
44.6
44.6
44.6
44.6
44.6
44.6
44.6
44.6
44.6
44.6
44.6
49
46.8
46.1
45.4
44.8
44.2
43.6
43.0
42.4
41.9
41.4
40.9
40.5
40.1
39.7
39.3
38.9
38.6
38.3
38.0
37.8

Federal Register / Vol. 67, No. 74 / Wednesday, April 17, 2002 / Rules and Regulations
Ages

40

60 .............................
61 .............................
62 .............................
63 .............................
64 .............................
65 .............................
66 .............................
67 .............................
68 .............................
69 .............................
70 .............................
71 .............................
72 .............................
73 .............................
74 .............................
75 .............................
76 .............................
77 .............................
78 .............................
79 .............................
80 .............................
81 .............................
82 .............................
83 .............................
84 .............................
85 .............................
86 .............................
87 .............................
88 .............................
89 .............................
90 .............................
91 .............................
92 .............................
93 .............................
94 .............................
95 .............................
96 .............................
97 .............................
98 .............................
99 .............................
100 ...........................
101 ...........................
102 ...........................
103 ...........................
104 ...........................
105 ...........................
106 ...........................
107 ...........................
108 ...........................
109 ...........................
110 ...........................
111 ...........................
112 ...........................
113 ...........................
114 ...........................
115+ .........................
Ages
50
51
52
53
54
55
56
57
58
59
60
61
62
63

44.7
44.6
44.5
44.5
44.4
44.3
44.2
44.2
44.1
44.1
44.0
44.0
43.9
43.9
43.9
43.8
43.8
43.8
43.8
43.8
43.7
43.7
43.7
43.7
43.7
43.7
43.7
43.7
43.7
43.7
43.7
43.7
43.7
43.7
43.7
43.6
43.6
43.6
43.6
43.6
43.6
43.6
43.6
43.6
43.6
43.6
43.6
43.6
43.6
43.6
43.6
43.6
43.6
43.6
43.6
43.6
50

.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................

VerDate 112000

41
43.9
43.8
43.7
43.6
43.5
43.4
43.3
43.3
43.2
43.1
43.1
43.0
43.0
43.0
42.9
42.9
42.9
42.9
42.8
42.8
42.8
42.8
42.8
42.8
42.7
42.7
42.7
42.7
42.7
42.7
42.7
42.7
42.7
42.7
42.7
42.7
42.7
42.7
42.7
42.7
42.7
42.7
42.7
42.7
42.7
42.7
42.7
42.7
42.7
42.7
42.7
42.7
42.7
42.7
42.7
42.7
51

40.4
40.0
39.5
39.1
38.7
38.3
38.0
37.6
37.3
37.1
36.8
36.6
36.3
36.1

16:21 Apr 16, 2002

42

Jkt 197001

43.0
42.9
42.8
42.7
42.6
42.5
42.4
42.3
42.3
42.2
42.2
42.1
42.1
42.0
42.0
42.0
41.9
41.9
41.9
41.9
41.8
41.8
41.8
41.8
41.8
41.8
41.8
41.8
41.8
41.7
41.7
41.7
41.7
41.7
41.7
41.7
41.7
41.7
41.7
41.7
41.7
41.7
41.7
41.7
41.7
41.7
41.7
41.7
41.7
41.7
41.7
41.7
41.7
41.7
41.7
41.7
52

40.0
39.5
39.0
38.5
38.1
37.7
37.4
37.0
36.7
36.4
36.1
35.8
35.6
35.4

PO 00000

39.5
39.0
38.5
38.0
37.6
37.2
36.8
36.4
36.0
35.7
35.4
35.1
34.9
34.6

Frm 00033

43
42.2
42.1
41.9
41.8
41.7
41.6
41.5
41.4
41.4
41.3
41.3
41.2
41.1
41.1
41.1
41.0
41.0
41.0
40.9
40.9
40.9
40.9
40.9
40.9
40.8
40.8
40.8
40.8
40.8
40.8
40.8
40.8
40.8
40.8
40.8
40.8
40.8
40.8
40.8
40.8
40.8
40.8
40.8
40.8
40.8
40.8
40.8
40.8
40.8
40.7
40.7
40.7
40.7
40.7
40.7
40.7
53
39.1
38.5
38.0
37.5
37.1
36.6
36.2
35.8
35.4
35.1
34.8
34.5
34.2
33.9

Fmt 4701

44
41.4
41.2
41.1
41.0
40.8
40.7
40.6
40.6
40.5
40.4
40.3
40.3
40.2
40.2
40.1
40.1
40.1
40.0
40.0
40.0
40.0
39.9
39.9
39.9
39.9
39.9
39.9
39.9
39.9
39.8
39.8
39.8
39.8
39.8
39.8
39.8
39.8
39.8
39.8
39.8
39.8
39.8
39.8
39.8
39.8
39.8
39.8
39.8
39.8
39.8
39.8
39.8
39.8
39.8
39.8
39.8
54
38.7
38.1
37.6
37.1
36.6
36.1
35.7
35.2
34.8
34.5
34.1
33.8
33.5
33.2

Sfmt 4700

45
40.6
40.4
40.3
40.1
40.0
39.9
39.8
39.7
39.6
39.5
39.4
39.4
39.3
39.3
39.2
39.2
39.1
39.1
39.1
39.1
39.0
39.0
39.0
39.0
39.0
38.9
38.9
38.9
38.9
38.9
38.9
38.9
38.9
38.9
38.9
38.9
38.9
38.9
38.9
38.9
38.9
38.9
38.9
38.9
38.8
38.8
38.8
38.8
38.8
38.8
38.8
38.8
38.8
38.8
38.8
38.8
55
38.3
37.7
37.2
36.6
36.1
35.6
35.1
34.7
34.3
33.9
33.5
33.2
32.9
32.6

46

47

39.8
39.6
39.4
39.3
39.2
39.0
38.9
38.8
38.7
38.6
38.6
38.5
38.4
38.4
38.3
38.3
38.2
38.2
38.2
38.1
38.1
38.1
38.1
38.0
38.0
38.0
38.0
38.0
38.0
38.0
38.0
37.9
37.9
37.9
37.9
37.9
37.9
37.9
37.9
37.9
37.9
37.9
37.9
37.9
37.9
37.9
37.9
37.9
37.9
37.9
37.9
37.9
37.9
37.9
37.9
37.9
56

57

38.0
37.4
36.8
36.2
35.7
35.1
34.7
34.2
33.7
33.3
32.9
32.6
32.2
31.9

E:\FR\FM\17APR2.SGM

39.0
38.8
38.6
38.5
38.3
38.2
38.1
38.0
37.9
37.8
37.7
37.6
37.5
37.5
37.4
37.4
37.3
37.3
37.2
37.2
37.2
37.2
37.1
37.1
37.1
37.1
37.1
37.0
37.0
37.0
37.0
37.0
37.0
37.0
37.0
37.0
37.0
37.0
37.0
37.0
37.0
37.0
37.0
37.0
37.0
37.0
37.0
37.0
37.0
37.0
37.0
37.0
37.0
37.0
37.0
37.0

pfrm02

37.6
37.0
36.4
35.8
35.2
34.7
34.2
33.7
33.2
32.8
32.4
32.0
31.6
31.3

PsN: 17APR2

48
38.2
38.0
37.8
37.7
37.5
37.4
37.2
37.1
37.0
36.9
36.8
36.7
36.6
36.6
36.5
36.5
36.4
36.4
36.3
36.3
36.3
36.2
36.2
36.2
36.2
36.2
36.1
36.1
36.1
36.1
36.1
36.1
36.1
36.1
36.1
36.1
36.1
36.1
36.0
36.0
36.0
36.0
36.0
36.0
36.0
36.0
36.0
36.0
36.0
36.0
36.0
36.0
36.0
36.0
36.0
36.0
58
37.3
36.7
36.0
35.4
34.8
34.3
33.7
33.2
32.8
32.3
31.9
31.4
31.1
30.7

19019
49
37.5
37.3
37.1
36.9
36.7
36.6
36.4
36.3
36.2
36.0
35.9
35.9
35.8
35.7
35.6
35.6
35.5
35.5
35.4
35.4
35.4
35.3
35.3
35.3
35.3
35.2
35.2
35.2
35.2
35.2
35.2
35.2
35.1
35.1
35.1
35.1
35.1
35.1
35.1
35.1
35.1
35.1
35.1
35.1
35.1
35.1
35.1
35.1
35.1
35.1
35.1
35.1
35.1
35.1
35.1
35.1
59
37.1
36.4
35.7
35.1
34.5
33.9
33.3
32.8
32.3
31.8
31.3
30.9
30.5
30.1

19020

Federal Register / Vol. 67, No. 74 / Wednesday, April 17, 2002 / Rules and Regulations

Ages

50

64 .............................
65 .............................
66 .............................
67 .............................
68 .............................
69 .............................
70 .............................
71 .............................
72 .............................
73 .............................
74 .............................
75 .............................
76 .............................
77 .............................
78 .............................
79 .............................
80 .............................
81 .............................
82 .............................
83 .............................
84 .............................
85 .............................
86 .............................
87 .............................
88 .............................
89 .............................
90 .............................
91 .............................
92 .............................
93 .............................
94 .............................
95 .............................
96 .............................
97 .............................
98 .............................
99 .............................
100 ...........................
101 ...........................
102 ...........................
103 ...........................
104 ...........................
105 ...........................
106 ...........................
107 ...........................
108 ...........................
109 ...........................
110 ...........................
111 ...........................
112 ...........................
113 ...........................
114 ...........................
115+ .........................
Ages
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77

35.9
35.8
35.6
35.5
35.3
35.2
35.1
35.0
34.9
34.8
34.8
34.7
34.6
34.6
34.5
34.5
34.5
34.4
34.4
34.4
34.3
34.3
34.3
34.3
34.3
34.3
34.2
34.2
34.2
34.2
34.2
34.2
34.2
34.2
34.2
34.2
34.2
34.2
34.2
34.2
34.2
34.2
34.2
34.2
34.2
34.2
34.2
34.2
34.2
34.2
34.2
34.2
60

.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................

VerDate 112000

51
35.2
35.0
34.8
34.7
34.5
34.4
34.3
34.2
34.1
34.0
33.9
33.8
33.8
33.7
33.6
33.6
33.6
33.5
33.5
33.5
33.4
33.4
33.4
33.4
33.4
33.3
33.3
33.3
33.3
33.3
33.3
33.3
33.3
33.3
33.3
33.3
33.3
33.3
33.3
33.3
33.3
33.3
33.3
33.3
33.3
33.3
33.3
33.3
33.3
33.3
33.3
33.3
61

30.9
30.4
30.0
29.6
29.2
28.8
28.5
28.2
27.9
27.6
27.4
27.2
27.0
26.8
26.6
26.5
26.3
26.2

16:21 Apr 16, 2002

52

Jkt 197001

34.4
34.2
34.0
33.9
33.7
33.6
33.4
33.3
33.2
33.1
33.0
33.0
32.9
32.8
32.8
32.7
32.7
32.6
32.6
32.6
32.5
32.5
32.5
32.5
32.5
32.4
32.4
32.4
32.4
32.4
32.4
32.4
32.4
32.4
32.4
32.4
32.4
32.4
32.4
32.4
32.4
32.3
32.3
32.3
32.3
32.3
32.3
32.3
32.3
32.3
32.3
32.3
62

30.4
29.9
29.5
29.0
28.6
28.3
27.9
27.6
27.3
27.0
26.7
26.5
26.3
26.1
25.9
25.7
25.6
25.4

PO 00000

30.0
29.5
29.0
28.5
28.1
27.7
27.3
27.0
26.7
26.4
26.1
25.8
25.6
25.4
25.2
25.0
24.8
24.7

Frm 00034

53
33.7
33.5
33.3
33.1
32.9
32.8
32.6
32.5
32.4
32.3
32.2
32.1
32.0
32.0
31.9
31.8
31.8
31.8
31.7
31.7
31.7
31.6
31.6
31.6
31.6
31.5
31.5
31.5
31.5
31.5
31.5
31.5
31.5
31.5
31.5
31.5
31.5
31.5
31.4
31.4
31.4
31.4
31.4
31.4
31.4
31.4
31.4
31.4
31.4
31.4
31.4
31.4
63
29.6
29.0
28.5
28.1
27.6
27.2
26.8
26.4
26.1
25.7
25.4
25.2
24.9
24.7
24.5
24.3
24.1
23.9

Fmt 4701

54
33.0
32.7
32.5
32.3
32.1
32.0
31.8
31.7
31.6
31.5
31.4
31.3
31.2
31.1
31.0
31.0
30.9
30.9
30.8
30.8
30.8
30.7
30.7
30.7
30.7
30.7
30.6
30.6
30.6
30.6
30.6
30.6
30.6
30.6
30.6
30.6
30.6
30.6
30.5
30.5
30.5
30.5
30.5
30.5
30.5
30.5
30.5
30.5
30.5
30.5
30.5
30.5
64
29.2
28.6
28.1
27.6
27.1
26.7
26.3
25.9
25.5
25.2
24.8
24.5
24.3
24.0
23.8
23.6
23.4
23.2

Sfmt 4700

55
32.3
32.0
31.8
31.6
31.4
31.2
31.1
30.9
30.8
30.6
30.5
30.4
30.3
30.3
30.2
30.1
30.1
30.0
30.0
29.9
29.9
29.9
29.8
29.8
29.8
29.8
29.8
29.7
29.7
29.7
29.7
29.7
29.7
29.7
29.7
29.7
29.7
29.7
29.7
29.7
29.6
29.6
29.6
29.6
29.6
29.6
29.6
29.6
29.6
29.6
29.6
29.6
65
28.8
28.3
27.7
27.2
26.7
26.2
25.8
25.4
25.0
24.6
24.3
23.9
23.7
23.4
23.1
22.9
22.7
22.5

56

57

31.6
31.4
31.1
30.9
30.7
30.5
30.3
30.1
30.0
29.8
29.7
29.6
29.5
29.4
29.3
29.3
29.2
29.2
29.1
29.1
29.0
29.0
29.0
28.9
28.9
28.9
28.9
28.9
28.8
28.8
28.8
28.8
28.8
28.8
28.8
28.8
28.8
28.8
28.8
28.8
28.8
28.8
28.8
28.8
28.8
28.7
28.7
28.7
28.7
28.7
28.7
28.7
66

67

28.5
27.9
27.3
26.8
26.3
25.8
25.3
24.9
24.5
24.1
23.7
23.4
23.1
22.8
22.5
22.3
22.0
21.8

E:\FR\FM\17APR2.SGM

31.0
30.7
30.4
30.2
29.9
29.7
29.5
29.4
29.2
29.1
28.9
28.8
28.7
28.6
28.5
28.4
28.4
28.3
28.3
28.2
28.2
28.1
28.1
28.1
28.0
28.0
28.0
28.0
28.0
28.0
27.9
27.9
27.9
27.9
27.9
27.9
27.9
27.9
27.9
27.9
27.9
27.9
27.9
27.9
27.9
27.9
27.9
27.9
27.9
27.9
27.9
27.9

pfrm02

28.2
27.6
27.0
26.4
25.9
25.4
24.9
24.4
24.0
23.6
23.2
22.8
22.5
22.2
21.9
21.6
21.4
21.2

PsN: 17APR2

58
30.4
30.0
29.8
29.5
29.2
29.0
28.8
28.6
28.4
28.3
28.1
28.0
27.9
27.8
27.7
27.6
27.5
27.5
27.4
27.4
27.3
27.3
27.2
27.2
27.2
27.2
27.1
27.1
27.1
27.1
27.1
27.1
27.0
27.0
27.0
27.0
27.0
27.0
27.0
27.0
27.0
27.0
27.0
27.0
27.0
27.0
27.0
27.0
27.0
27.0
27.0
27.0
68
27.9
27.3
26.7
26.1
25.5
25.0
24.5
24.0
23.5
23.1
22.7
22.3
22.0
21.6
21.3
21.0
20.8
20.6

59
29.8
29.4
29.1
28.8
28.6
28.3
28.1
27.9
27.7
27.5
27.4
27.2
27.1
27.0
26.9
26.8
26.7
26.6
26.6
26.5
26.5
26.4
26.4
26.4
26.3
26.3
26.3
26.3
26.2
26.2
26.2
26.2
26.2
26.2
26.2
26.2
26.1
26.1
26.1
26.1
26.1
26.1
26.1
26.1
26.1
26.1
26.1
26.1
26.1
26.1
26.1
26.1
69
27.6
27.0
26.4
25.7
25.2
24.6
24.1
23.6
23.1
22.6
22.2
21.8
21.4
21.1
20.8
20.5
20.2
19.9

Federal Register / Vol. 67, No. 74 / Wednesday, April 17, 2002 / Rules and Regulations
Ages

60

78 .............................
79 .............................
80 .............................
81 .............................
82 .............................
83 .............................
84 .............................
85 .............................
86 .............................
87 .............................
88 .............................
89 .............................
90 .............................
91 .............................
92 .............................
93 .............................
94 .............................
95 .............................
96 .............................
97 .............................
98 .............................
99 .............................
100 ...........................
101 ...........................
102 ...........................
103 ...........................
104 ...........................
105 ...........................
106 ...........................
107 ...........................
108 ...........................
109 ...........................
110 ...........................
111 ...........................
112 ...........................
113 ...........................
114 ...........................
115+ .........................
Ages

26.1
26.0
25.9
25.8
25.8
25.7
25.6
25.6
25.5
25.5
25.5
25.4
25.4
25.4
25.4
25.4
25.3
25.3
25.3
25.3
25.3
25.3
25.3
25.3
25.3
25.3
25.3
25.3
25.3
25.2
25.2
25.2
25.2
25.2
25.2
25.2
25.2
25.2
70

70 .............................
71 .............................
72 .............................
73 .............................
74 .............................
75 .............................
76 .............................
77 .............................
78 .............................
79 .............................
80 .............................
81 .............................
82 .............................
83 .............................
84 .............................
85 .............................
86 .............................
87 .............................
88 .............................
89 .............................
90 .............................
91 .............................
92 .............................
93 .............................
94 .............................
95 .............................
96 .............................
97 .............................
98 .............................
99 .............................
100 ...........................
101 ...........................

VerDate 112000

61
25.3
25.2
25.1
25.0
24.9
24.9
24.8
24.8
24.7
24.7
24.6
24.6
24.6
24.5
24.5
24.5
24.5
24.5
24.5
24.5
24.4
24.4
24.4
24.4
24.4
24.4
24.4
24.4
24.4
24.4
24.4
24.4
24.4
24.4
24.4
24.4
24.4
24.4
71

21.8
21.3
20.9
20.6
20.2
19.9
19.6
19.4
19.1
18.9
18.7
18.5
18.3
18.2
18.0
17.9
17.8
17.7
17.6
17.6
17.5
17.4
17.4
17.3
17.3
17.3
17.2
17.2
17.2
17.2
17.1
17.1

16:21 Apr 16, 2002

62

Jkt 197001

24.6
24.4
24.3
24.2
24.1
24.1
24.0
23.9
23.9
23.8
23.8
23.8
23.7
23.7
23.7
23.7
23.6
23.6
23.6
23.6
23.6
23.6
23.6
23.6
23.6
23.6
23.5
23.5
23.5
23.5
23.5
23.5
23.5
23.5
23.5
23.5
23.5
23.5
72

21.3
20.9
20.5
20.1
19.7
19.4
19.1
18.8
18.5
18.3
18.1
17.9
17.7
17.5
17.4
17.3
17.1
17.0
16.9
16.9
16.8
16.7
16.7
16.6
16.6
16.5
16.5
16.5
16.4
16.4
16.4
16.4

PO 00000

20.9
20.5
20.0
19.6
19.3
18.9
18.6
18.3
18.0
17.7
17.5
17.3
17.1
16.9
16.7
16.6
16.5
16.4
16.3
16.2
16.1
16.0
16.0
15.9
15.9
15.8
15.8
15.8
15.7
15.7
15.7
15.6

Frm 00035

63
23.8
23.7
23.6
23.4
23.4
23.3
23.2
23.1
23.1
23.0
23.0
22.9
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22.9
22.9
22.8
22.8
22.8
22.8
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22.7
22.7
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22.7
22.7
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22.7
22.7
73
20.6
20.1
19.6
19.2
18.8
18.4
18.1
17.8
17.5
17.2
16.9
16.7
16.5
16.3
16.1
16.0
15.8
15.7
15.6
15.5
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23.1
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22.1
22.0
22.0
22.0
22.0
21.9
21.9
21.9
21.9
21.9
21.9
21.9
21.9
21.9
21.9
21.9
21.8
21.8
21.8
21.8
21.8
21.8
21.8
21.8
21.8
74
20.2
19.7
19.3
18.8
18.4
18.0
17.6
17.3
17.0
16.7
16.4
16.2
15.9
15.7
15.5
15.4
15.2
15.1
15.0
14.9
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22.2
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21.8
21.7
21.6
21.6
21.5
21.4
21.4
21.3
21.3
21.3
21.2
21.2
21.2
21.1
21.1
21.1
21.1
21.1
21.1
21.1
21.1
21.0
21.0
21.0
21.0
21.0
21.0
21.0
21.0
21.0
21.0
21.0
21.0
21.0
75
19.9
19.4
18.9
18.4
18.0
17.6
17.2
16.8
16.5
16.2
15.9
15.6
15.4
15.2
15.0
14.8
14.6
14.5
14.4
14.3
14.2
14.1
14.0
13.9
13.9
13.8
13.8
13.7
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13.6
13.6
13.6

66

67

21.7
21.5
21.3
21.2
21.1
21.0
20.9
20.8
20.7
20.7
20.6
20.5
20.5
20.5
20.4
20.4
20.4
20.3
20.3
20.3
20.3
20.3
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20.2
20.2
20.2
20.2
20.2
20.2
20.2
20.2
20.2
20.2
20.2
20.2
20.2
20.2
20.2
76

77

19.6
19.1
18.6
18.1
17.6
17.2
16.8
16.4
16.0
15.7
15.4
15.1
14.9
14.7
14.4
14.3
14.1
13.9
13.8
13.7
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19.4
19.4
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pfrm02

19.4
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16.0
15.6
15.3
15.0
14.7
14.4
14.2
13.9
13.7
13.5
13.4
13.2
13.1
13.0
12.9
12.8
12.7
12.6
12.6
12.5
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12.4
12.4
12.3
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68
20.3
20.1
20.0
19.8
19.7
19.5
19.4
19.3
19.2
19.2
19.1
19.0
19.0
18.9
18.9
18.8
18.8
18.8
18.8
18.7
18.7
18.7
18.7
18.7
18.6
18.6
18.6
18.6
18.6
18.6
18.6
18.6
18.6
18.6
18.6
18.6
18.6
18.6
78
19.1
18.5
18.0
17.5
17.0
16.5
16.0
15.6
15.2
14.9
14.5
14.2
13.9
13.7
13.4
13.2
13.0
12.9
12.7
12.6
12.4
12.3
12.2
12.1
12.0
12.0
11.9
11.9
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11.8
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19021
69
19.7
19.5
19.3
19.1
19.0
18.8
18.7
18.6
18.5
18.4
18.3
18.3
18.2
18.2
18.1
18.1
18.0
18.0
18.0
18.0
17.9
17.9
17.9
17.9
17.9
17.9
17.8
17.8
17.8
17.8
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17.8
17.8
17.8
17.8
17.8
17.8
17.8
79
18.9
18.3
17.7
17.2
16.7
16.2
15.7
15.3
14.9
14.5
14.1
13.8
13.5
13.2
13.0
12.8
12.5
12.4
12.2
12.0
11.9
11.8
11.7
11.6
11.5
11.4
11.3
11.3
11.2
11.2
11.1
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19022

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70

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16:21 Apr 16, 2002

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16.3

13.8
13.4
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11.9
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11.0
10.9
10.8
10.7
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82

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11.7
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92

7.6
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84

12.8
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11.1
10.9
10.6
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10.2
10.1
9.9
9.8
9.6
9.5
9.4
9.3
9.2
9.2
9.1
9.0
9.0
8.9
8.8
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93

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75

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85

12.6
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94

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76

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86

12.3
11.9
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11.1
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10.2
9.9
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9.1
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8.8
8.7
8.6
8.5
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8.0
7.9
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95

7.1
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6.6
6.4
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87

12.1
11.7
11.3
10.9
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9.9
9.6
9.4
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9.0
8.8
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8.5
8.3
8.2
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8.0
7.9
7.8
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78

pfrm02

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88

11.9
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7.8
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97

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5.7
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5.3
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5.0
4.9
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4.5
4.4
4.3
4.2

79

89

11.7
11.3
10.8
10.4
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9.7
9.4
9.1
8.8
8.6
8.3
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98

6.6
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PsN: 17APR2

11.0
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8.1
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6.9
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6.5
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99

6.5
6.3
6.0
5.8
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5.2
5.0
4.8
4.7
4.5
4.4
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4.1
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6.4
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5.9
5.6
5.4
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5.0
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4.7
4.5
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4.2
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4.0
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3.7
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19023

Federal Register / Vol. 67, No. 74 / Wednesday, April 17, 2002 / Rules and Regulations
Ages

90

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5.4
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5.3
5.3
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101
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93

102
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3.4
3.2
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94
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103
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3.7
3.6
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Ages

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2.9
2.8
2.7
2.6
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2.5
2.4
2.4
2.3
2.3

§ 1.403(b)–3 Required minimum
distributions from annuity contracts
purchased, or custodial accounts or
retirement income accounts established, by
a section 501(c)(3) organization or a public
school.

Q–1. Are section 403(b) contracts
subject to the distribution rules
provided in section 401(a)(9)?
A–1. (a) Yes, section 403(b) contracts
are subject to the distribution rules
provided in section 401(a)(9). For
purposes of this section, the term
section 403(b) contract means an
annuity contract described in section
403(b)(1), custodial account described
in section 403(b)(7), or retirement

Jkt 197001

96
4.4
4.3
4.3
4.2
4.2
4.1
4.1
4.1
4.1

3.7
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3.3
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3.0
2.9
2.7
2.6
2.5
2.4
2.3
2.3
2.2
2.2
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2.1

3.5
3.4
3.2
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2.7
2.6
2.5
2.4
2.3
2.2
2.1
2.0
2.0
1.9
1.9

1.4
1.2
1.1
1.1
1.0
1.0

income account described in section
403(b)(9).
(b) For purposes of applying the
distribution rules in section 401(a)(9),
section 403(b) contracts will be treated
as individual retirement annuities
described in section 408(b) and
individual retirement accounts
described in section 408(a) (IRAs).
Consequently, except as otherwise
provided in paragraph (c) of this A–1,
the distribution rules in section
401(a)(9) will be applied to section
403(b) contracts in accordance with the
provisions in § 1.408–8 for purposes of
determining required minimum
distributions for calendar years
beginning on or after January 1, 2003.
(c)(1) The required beginning date for
purposes of section 403(b)(10) is April
1 of the calendar year following the later
of the calendar year in which the
employee attains 701⁄2 or the calendar
year in which the employee retires from
employment with the employer
maintaining the plan. The concept of 5percent owner has no application in the
case of employees of employers
described in section 403(b)(1)(A).

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107
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2.9
2.7
2.6
2.4
2.3
2.2
2.1
2.0
1.9
1.9
1.8
1.8
1.7

112

98
3.9
3.9
3.8
3.8
3.7
3.7
3.6
3.6
3.6

106

111
1.5
1.4
1.3
1.2
1.1
1.1

97
4.2
4.1
4.0
4.0
3.9
3.9
3.9
3.9
3.8

105

110

Q–4. May the tables under this section
be changed?
A–4. The Single Life Table, Uniform
Lifetime Table and Joint and Last
Survivor Table provided in A–1 through
A–3 of this section may be changed by
the Commissioner in revenue rulings,
notices, and other guidance published
in the Internal Revenue Bulletin. See
§ 601.601(d)(2)(ii)(b) of this chapter.
Par. 3. Section 1.403(b)–3 is added to
read as follows:

16:21 Apr 16, 2002

4.6
4.6
4.5
4.5
4.4
4.4
4.4
4.3
4.3
104

110 ...............................................................................................
111 ...............................................................................................
112 ...............................................................................................
113 ...............................................................................................
114 ...............................................................................................
115+ .............................................................................................

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95

3.5
3.5
3.4
3.3
3.3
3.2
3.2
3.2
3.1
109

3.3
3.1
2.9
2.7
2.5
2.4
2.2
2.1
1.9
1.8
1.7
1.6
1.5
1.5
1.4
1.4
114

1.2
1.1
1.0
1.0
1.0
1.0

3.2
3.0
2.8
2.6
2.4
2.3
2.1
2.0
1.8
1.7
1.6
1.5
1.4
1.3
1.3
1.2
115+

1.1
1.0
1.0
1.0
1.0
1.0

1.1
1.0
1.0
1.0
1.0
1.0

(2) The rule in A–5 of § 1.408–8 does
not apply to section 403(b) contracts.
Thus, the surviving spouse of an
employee is not permitted to treat a
section 403(b) contract of which the
spouse is the sole beneficiary as the
spouse’s own section 403(b) contract.
(3) Annuity payments provided with
respect to retirement income accounts
described in section 403(b)(9) will not
fail to satisfy the requirements of A–4 of
§ 1.401(a)(9)–6T merely because the
payments are not made under an
annuity contract purchased from an
insurance company, provided the
relationship between the annuity
payments and the retirement income
accounts is not inconsistent with any
rules prescribed by the Commissioner in
revenue rulings, notices, and other
guidance published in the Internal
Revenue Bulletin. See
§ 601.601(d)(2)(ii)(b) of this chapter.
Q–2. To what benefits under section
403(b) contracts do the distribution
rules provided in section 401(a)(9)
apply?
A–2. (a) The distribution rules
provided in section 401(a)(9) apply to

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all benefits under section 403(b)
contracts accruing after December 31,
1986 (post-’86 account balance). The
distribution rules provided in section
401(a)(9) do not apply to the
undistributed portion of the account
balance under the section 403(b)
contract valued as of December 31,
1986, exclusive of subsequent earnings
(pre-’87 account balance). Consequently,
the post-’86 account balance includes
earnings after December 31, 1986 on
contributions made before January 1,
1987, in addition to the contributions
made after December 31, 1986 and
earnings thereon.
(b) The issuer or custodian of the
section 403(b) contract must keep
records that enable it to identify the pre’87 account balance and subsequent
changes as set forth in paragraph (b) of
this A–2 and provide such information
upon request to the relevant employee
or beneficiaries with respect to the
contract. If the issuer or custodian does
not keep such records, the entire
account balance will be treated as
subject to section 401(a)(9).
(c) In applying the distribution rules
in section 401(a)(9), only the post-’86
account balance is used to calculate the
required minimum distribution for a
calendar year. The amount of any
distribution from a contract will be
treated as being paid from the post-’86
account balance to the extent the
distribution is required to satisfy the
minimum distribution requirement with
respect to that contract for a calendar
year. Any amount distributed in a
calendar year from a contract in excess
of the required minimum distribution
for a calendar year with respect to that
contract will be treated as paid from the
pre-’87 account balance, if any, of that
contract.
(d) If an amount is distributed from
the pre-’87 account balance and rolled
over to another section 403(b) contract,
the amount will be treated as part of the
post-’86 account balance in that second
contract. However, if the pre-’87
account balance under a section 403(b)
contract is directly transferred to
another section 403(b) contract, the
amount transferred retains its character
as a pre-’87 account balance, provided
the issuer of the transferee contract
satisfies the recordkeeping requirements
of paragraph (b) of this A–2.
(e) The distinction between the pre’87 account balance and the post-’86
account balance provided for under this
A–2 has no relevance for purposes of
determining the portion of a distribution
that is includible in income under
section 72.

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Q–3. Must the pre-’87 account balance
be distributed in accordance with the
incidental benefit requirement?
A–3. Yes, the pre-’87 account balance
must be distributed in accordance with
the incidental benefit requirement of
§ 1.401–1(b)(1)(i). Distributions
attributable to the pre-’87 account
balance are treated as satisfying this
requirement if all distributions from the
section 403(b) contract (including
distributions attributable to the post-’86
account balance) satisfy the
requirements of § 1.401–1(b)(1)(i)
without regard to this section, and
distributions attributable to the post-’86
account balance satisfy the rules of this
section. Alternatively, distributions
attributable to the pre-’87 account
balance are treated as satisfying the
incidental benefit requirement if all
distributions from the section 403(b)
contract (including distributions
attributable to both the pre-’87 account
balance and the post-’86 account
balance) satisfy the rules of this section.
Q–4. Is the required minimum
distribution from one section 403(b)
contract of an employee permitted to be
distributed from another section 403(b)
contract in order to satisfy section
401(a)(9)?
A–4. Yes, as provided in paragraph (b)
of A–1 of this section, the distribution
rules in section 401(a)(9) will be applied
to section 403(b) contracts in
accordance with the provisions in
§ 1.408–8. Thus, the required minimum
distribution must be separately
determined for each section 403(b)
contract of an employee. However, as
provided in A–9 of § 1.408–8 with
respect to IRAs, such amounts may then
be totaled and the total distribution
taken from any one or more of the
individual section 403(b) contracts.
However, consistent with the rules in
A–9 of § 1.408–8, only amounts in
section 403(b) contracts that an
individual holds as an employee may be
aggregated. Amounts in section 403(b)
contracts that an individual holds as a
beneficiary of the same decedent may be
aggregated, but such amounts may not
be aggregated with amounts held in
section 403(b) contracts that the
individual holds as the employee or as
the beneficiary of another decedent.
Distributions from section 403(b)
contracts or accounts will not satisfy the
minimum distribution requirements for
IRAs, nor will distributions from IRAs
satisfy the minimum distribution
requirements for section 403(b)
contracts or accounts.
Par. 4. Section 1.408–8 is added to
read as follows:

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§ 1.408–8 Distribution requirements for
individual retirement plans.

The following questions and answers
relate to the distribution rules for IRAs
provided in sections 408(a)(6) and
408(b)(3).
Q–1. Is an IRA subject to the
distribution rules provided in section
401(a)(9) for qualified plans?
A–1. (a) Yes, an IRA is subject to the
required minimum distribution rules
provided in section 401(a)(9). In order to
satisfy section 401(a)(9) for purposes of
determining required minimum
distributions for calendar years
beginning on or after January 1, 2003,
the rules of §§ 1.401(a)(9)–1 through
1.401(a)(9)–9 and 1.401(a)(9)–6T for
defined contribution plans must be
applied, except as otherwise provided
in this section. For example, whether
the 5-year rule or the life expectancy
rule applies to distributions after death
occurring before the IRA owner’s
required beginning date is determined
in accordance with § 1.401(a)(9)–3 and
the rules of § 1.401(a)(9)–4 apply for
purposes of determining an IRA owner’s
designated beneficiary. Similarly, the
amount of the minimum distribution
required for each calendar year from an
individual account is determined in
accordance with § 1.401(a)(9)–5. For
purposes of this section, the term IRA
means an individual retirement account
or annuity described in section 408(a) or
(b). The IRA owner is the individual for
whom an IRA is originally established
by contributions for the benefit of that
individual and that individual’s
beneficiaries.
(b) For purposes of applying the
required minimum distribution rules in
§§ 1.401(a)(9)–1 through 1.401(a)(9)–9
and 1.401(a)(9)–6T for qualified plans,
the IRA trustee, custodian, or issuer is
treated as the plan administrator, and
the IRA owner is substituted for the
employee.
(c) See A–14 and A–15 of § 1.408A–
6 for rules under section 401(a)(9) that
apply to a Roth IRA.
Q–2. Are IRAs that receive employer
contributions under a simplified
employee pension (defined in section
408(k)) or a SIMPLE IRA (defined in
section 408(p)) treated as IRAs for
purposes of section 401(a)(9)?
A–2. Yes, IRAs that receive employer
contributions under a simplified
employee pension (defined in section
408(k)) or a SIMPLE plan (defined in
section 408(p)) are treated as IRAs,
rather than employer plans, for
purposes of section 401(a)(9) and are,
therefore, subject to the distribution
rules in this section.

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Q–3. In the case of distributions from
an IRA, what does the term required
beginning date mean?
A–3. In the case of distributions from
an IRA, the term required beginning
date means April 1 of the calendar year
following the calendar year in which the
individual attains age 701⁄2.
Q–4. What portion of a distribution
from an IRA is not eligible for rollover
because the amount is a required
minimum distribution?
A–4. The portion of a distribution that
is a required minimum distribution
from an IRA and thus not eligible for
rollover is determined in the same
manner as provided in A–7 of
§ 1.402(c)–2 for distributions from
qualified plans. For example, if a
minimum distribution is required under
section 401(a)(9) for a calendar year, an
amount distributed during a calendar
year from an IRA is treated as a required
minimum distribution under section
401(a)(9) to the extent that the total
required minimum distribution for the
year under section 401(a)(9) for that IRA
has not been satisfied. This requirement
may be satisfied by a distribution from
the IRA or, as permitted under A–9 of
this section, from another IRA.
Q–5. May an individual’s surviving
spouse elect to treat such spouse’s entire
interest as a beneficiary in an
individual’s IRA upon the death of the
individual (or the remaining part of
such interest if distribution to the
spouse has commenced) as the spouse’s
own account?
A–5. (a) The surviving spouse of an
individual may elect, in the manner
described in paragraph (b) of this A–5,
to treat the spouse’s entire interest as a
beneficiary in an individual’s IRA (or
the remaining part of such interest if
distribution thereof has commenced to
the spouse) as the spouse’s own IRA.
This election is permitted to be made at
any time after the individual’s date of
death. In order to make this election, the
spouse must be the sole beneficiary of
the IRA and have an unlimited right to
withdraw amounts from the IRA. If a
trust is named as beneficiary of the IRA,
this requirement is not satisfied even if
the spouse is the sole beneficiary of the
trust. If the surviving spouse makes the
election, the required minimum
distribution for the calendar year of the
election and each subsequent calendar
year is determined under section
401(a)(9)(A) with the spouse as IRA
owner and not section 401(a)(9)(B) with
the surviving spouse as the deceased
IRA owner’s beneficiary. However, if the
election is made in the calendar year
containing the IRA owner’s death, the
spouse is not required to take a required
minimum distribution as the IRA owner

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for that calendar year. Instead, the
spouse is required to take a required
minimum distribution for that year,
determined with respect to the deceased
IRA owner under the rules of A–4(a) of
§ 1.401(a)(9)–5, to the extent such a
distribution was not made to the IRA
owner before death.
(b) The election described in
paragraph (a) of this A–5 is made by the
surviving spouse redesignating the
account as an account in the name of
the surviving spouse as IRA owner
rather than as beneficiary. Alternatively,
a surviving spouse eligible to make the
election is deemed to have made the
election if, at any time, either of the
following occurs —
(1) Any amount in the IRA that would
be required to be distributed to the
surviving spouse as beneficiary under
section 401(a)(9)(B) is not distributed
within the time period required under
section 401(a)(9)(B); or
(2) Any additional amount is
contributed to the IRA which is subject,
or deemed to be subject, to the lifetime
distribution requirements of section
401(a)(9)(A).
(c) The result of an election described
in paragraph (b) of this A–5 is that the
surviving spouse shall then be
considered the IRA owner for whose
benefit the trust is maintained for all
purposes under the Internal Revenue
Code (e.g., section 72(t)).
Q–6. How is the benefit determined
for purposes of calculating the required
minimum distribution from an IRA?
A–6. For purposes of determining the
minimum distribution required to be
made from an IRA in any calendar year,
the account balance of the IRA as of
December 31 of the calendar year
immediately preceding the calendar
year for which distributions are required
to be made is substituted in A–3 of
§ 1.401(a)(9)–5 for the account balance
of the employee. Except as provided in
A–7 and A–8 of this section, no
adjustments are made for contributions
or distributions after that date.
Q–7. What rules apply in the case of
a rollover to an IRA of an amount
distributed by a qualified plan or
another IRA?
A–7. If the surviving spouse of an
employee rolls over a distribution from
a qualified plan, such surviving spouse
may elect to treat the IRA as the
spouse’s own IRA in accordance with
the provisions in A–5 of this section. In
the event of any other rollover to an IRA
of an amount distributed by a qualified
plan or another IRA, the rules in
§ 1.401(a)(9)–7 will apply for purposes
of determining the account balance for
the receiving IRA and the required
minimum distribution from the

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19025

receiving IRA. However, because the
value of the account balance is
determined as of December 31 of the
year preceding the year for which the
required minimum distribution is being
determined and not as of a valuation
date in the preceding year, the account
balance of the receiving IRA is only
adjusted if the amount is not received in
the calendar year in which the amount
rolled over is distributed. In that case,
for purposes of determining the required
minimum distribution for the calendar
year in which such amount is actually
received, the account balance of the
receiving IRA as of December 31 of the
preceding year must be adjusted by the
amount received in accordance with A–
2 of § 1.401(a)(9)–7.
Q–8. What rules apply in the case of
a transfer (including a
recharacterization) from one IRA to
another?
A–8. (a) General rule. In the case of
a trustee-to-trustee transfer from one
IRA to another IRA that is not a
distribution and rollover, the transfer is
not treated as a distribution by the
transferor IRA for purposes of section
401(a)(9). Accordingly, the minimum
distribution requirement with respect to
the transferor IRA must still be satisfied.
Except as provided in paragraph (b) of
this A–8 for recharacterizations, after
the transfer the employee’s account
balance and the required minimum
distribution under the transferee IRA are
determined in the same manner as an
account balance and required minimum
distribution are determined under an
IRA receiving a rollover contribution
under A–7 of this section.
(b) Recharacterizations. If an amount
is contributed to a Roth IRA that is a
conversion contribution or failed
conversion contribution and that
amount (plus net income allocable to
that amount) is transferred to another
IRA (transferee IRA) in a subsequent
year as a recharacterized contribution,
the recharacterized contribution (plus
allocable net income) must be added to
the December 31 account balance of the
transferee IRA for the year in which the
conversion or failed conversion
occurred.
Q–9. Is the required minimum
distribution from one IRA of an owner
permitted to be distributed from another
IRA in order to satisfy section 401(a)(9)?
A–9. Yes, the required minimum
distribution must be calculated
separately for each IRA. The separately
calculated amounts may then be totaled
and the total distribution taken from any
one or more of the individual’s IRAs
under the rules set forth in this A–9.
Generally, only amounts in IRAs that an
individual holds as the IRA owner may

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be aggregated. However, amounts in
IRAs that an individual holds as a
beneficiary of the same decedent and
which are being distributed under the
life expectancy rule in section
401(a)(9)(B)(iii) or (iv) may be
aggregated, but such amounts may not
be aggregated with amounts held in
IRAs that the individual holds as the
IRA owner or as the beneficiary of
another decedent. Distributions from
section 403(b) contracts or accounts will
not satisfy the distribution requirements
from IRAs, nor will distributions from
IRAs satisfy the distribution
requirements from section 403(b)
contracts or accounts. Distributions
from Roth IRAs (defined in section
408A) will not satisfy the distribution
requirements applicable to IRAs or
section 403(b) accounts or contracts and
distributions from IRAs or section
403(b) contracts or accounts will not
satisfy the distribution requirements
from Roth IRAs.
Q–10. Is any reporting required by the
trustee, custodian, or issuer of an IRA
with respect to the minimum amount
that is required to be distributed from
that IRA?
A–10. Yes, the trustee, custodian, or
issuer of an IRA is required to report
information with respect to the
minimum amount required to be
distributed from the IRA for each
calendar year to individuals or entities,
at the time, and in the manner,
prescribed by the Commissioner in
revenue rulings, notices, and other
guidance published in the Internal
Revenue Bulletin (see
§ 601.601(d)(2)(ii)(b) of this chapter) as
well as the applicable Federal tax forms
and accompanying instructions.
Q–11. Which amounts distributed
from an IRA are taken into account in
determining whether section 401(a)(9) is
satisfied?
A–11. (a) General rule. Except as
provided in paragraph (b) of this A–11,
all amounts distributed from an IRA are
taken into account in determining
whether section 401(a)(9) is satisfied,
regardless of whether the amount is
includible in income.
(b) Amounts not taken into account.
The following amounts are not taken
into account in determining whether the
required minimum amount with respect
to an IRA for a calendar year has been
distributed—
(1) Contributions returned pursuant to
section 408(d)(4), together with the
income allocable to these contributions;
(2) Contributions returned pursuant to
section 408(d)(5);
(3) Corrective distributions of excess
simplified employee pension
contributions under section

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408(k)(6)(C), together with the income
allocable to these distributions; and
(4) Similar items designated by the
Commissioner in revenue rulings,
notices, and other guidance published
in the Internal Revenue Bulletin. See
§ 601.601(d)(2)(ii)(b) of this chapter.
PART 54—PENSION EXCISE TAXES
Par. 5. The authority for part 54 is
amended by adding the following
citation to read in part as follows:
Authority: 26 U.S.C. 7805 * * *

Section 54.4974–2 also issued under
26 U.S.C. 4974. * * *
Par. 6. Section after § 54.4974–2 is
added to read as follows:
§ 54.4974–2 Excise tax on accumulations
in qualified retirement plans.

Q–1. Is any tax imposed on a payee
under any qualified retirement plan or
any eligible deferred compensation plan
(as defined in section 457(b)) to whom
an amount is required to be distributed
for a taxable year if the amount
distributed during the taxable year is
less than the required minimum
distribution?
A–1. Yes, if the amount distributed to
a payee under any qualified retirement
plan or any eligible deferred
compensation plan (as defined in
section 457(b)) for a calendar year is less
than the required minimum distribution
for such year, an excise tax is imposed
on such payee under section 4974 for
the taxable year beginning with or
within the calendar year during which
the amount is required to be distributed.
The tax is equal to 50 percent of the
amount by which such required
minimum distribution exceeds the
actual amount distributed during the
calendar year. Section 4974 provides
that this tax shall be paid by the payee.
For purposes of section 4974, the term
required minimum distribution means
the minimum distribution amount
required to be distributed pursuant to
section 401(a)(9), 403(b)(10), 408(a)(6),
408(b)(3), or 457(d)(2), as the case may
be, and the regulations thereunder.
Except as otherwise provided in A–6 of
this section, the required minimum
distribution for a calendar year is the
required minimum distribution amount
required to be distributed during the
calendar year. A–6 of this section
provides a special rule for amounts
required to be distributed by an
employee’s (or individual’s) required
beginning date.

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Q–2. For purposes of section 4974, what
is a qualified retirement plan?
A–2. For purposes of section 4974,
each of the following is a qualified
retirement plan—
(a) A plan described in section 401(a)
which includes a trust exempt from tax
under section 501(a);
(b) An annuity plan described in
section 403(a);
(c) An annuity contract, custodial
account, or retirement income account
described in section 403(b);
(d) An individual retirement account
described in section 408(a) (including a
Roth IRA described in section 408A);
(e) An individual retirement annuity
described in section 408(b) (including a
Roth IRA described in section 408A); or
(f) Any other plan, contract, account,
or annuity that, at any time, has been
treated as a plan, account, or annuity
described in paragraphs (a) through (e)
of this A–2, whether or not such plan,
contract, account, or annuity currently
satisfies the applicable requirements for
such treatment.
Q–3. If a payee’s interest under a
qualified retirement plan is in the form
of an individual account, how is the
required minimum distribution for a
given calendar year determined for
purposes of section 4974?
A–3. (a) General rule. If a payee’s
interest under a qualified retirement
plan is in the form of an individual
account and distribution of such
account is not being made under an
annuity contract purchased in
accordance with A–4 of § 1.401(a)(9)–
6T, the amount of the required
minimum distribution for any calendar
year for purposes of section 4974 is the
required minimum distribution amount
required to be distributed for such
calendar year in order to satisfy the
minimum distribution requirements in
§ 1.401(a)(9)–5 as provided in the
following (whichever is applicable)—
(1) Section 401(a)(9) and
§§ 1.401(a)(9)–1 through 1.401(a)(9)–5
and 1.401(a)(9)–7 through 1.401(a)(9)–9
in the case of a plan described in section
401(a) which includes a trust exempt
under section 501(a) or an annuity plan
described in section 403(a);
(2) Section 403(b)(10) and § 1.403(b)–
3 (in the case of an annuity contract,
custodial account, or retirement income
account described in section 403(b));
(3) Section 408(a)(6) or (b)(3) and
§ 1.408–8 (in the case of an individual
retirement account or annuity described
in section 408(a) or (b)); or
(4) Section 457(d) in the case of an
eligible deferred compensation plan (as
defined in section 457(b)).
(b) Default provisions. Unless
otherwise provided under the qualified

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retirement plan (or, if applicable, the
governing instrument of the qualified
retirement plan), the default provisions
in A–4(a) of § 1.401(a)(9)–3 apply in
determining the required minimum
distribution for purposes of section
4974.
(c) Five-year rule. If the 5-year rule in
section 401(a)(9)(B)(ii) applies to the
distribution to a payee, no amount is
required to be distributed for any
calendar year to satisfy the applicable
enumerated section in paragraph (a) of
this A–3 until the calendar year which
contains the date 5 years after the date
of the employee’s death. For the
calendar year which contains the date 5
years after the employee’s death, the
required minimum distribution amount
required to be distributed to satisfy the
applicable enumerated section is the
payee’s entire remaining interest in the
qualified retirement plan.
Q–4. If a payee’s interest in a qualified
retirement plan is being distributed in
the form of an annuity, how is the
amount of the required minimum
distribution determined for purposes of
section 4974?
A–4. If a payee’s interest in a qualified
retirement plan is being distributed in
the form of an annuity (either directly
from the plan, in the case of a defined
benefit plan, or under an annuity
contract purchased from an insurance
company), the amount of the required
minimum distribution for purposes of
section 4974 will be determined as
follows:
(a) Permissible annuity distribution
option. A permissible annuity
distribution option is an annuity
contract (or, in the case of annuity
distributions from a defined benefit
plan, a distribution option) which
specifically provides for distributions
which, if made as provided, would for
every calendar year equal or exceed the
minimum distribution amount required
to be distributed to satisfy the
applicable section enumerated in
paragraph (a) of A–2 of this section for
every calendar year. If the annuity
contract (or, in the case of annuity
distributions from a defined benefit
plan, a distribution option) under which
distributions to the payee are being
made is a permissible annuity
distribution option, the required
minimum distribution for a given
calendar year will equal the amount
which the annuity contract (or
distribution option) provides is to be
distributed for that calendar year.
(b) Impermissible annuity distribution
option. An impermissible annuity
distribution option is an annuity
contract (or, in the case of annuity
distributions from a defined benefit

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plan, a distribution option) under which
distributions to the payee are being
made that specifically provides for
distributions which, if made as
provided, would for any calendar year
be less than the minimum distribution
amount required to be distributed to
satisfy the applicable section
enumerated in paragraph (a) of A–3 of
this section. If the annuity contract (or,
in the case of annuity distributions from
a defined benefit plan, the distribution
option) under which distributions to the
payee are being made is an
impermissible annuity distribution
option, the required minimum
distribution for each calendar year will
be determined as follows:
(1) If the qualified retirement plan
under which distributions are being
made is a defined benefit plan, the
minimum distribution amount required
to be distributed each year will be the
amount which would have been
distributed under the plan if the
distribution option under which
distributions to the payee were being
made was the following permissible
annuity distribution option:
(i) In the case of distributions
commencing before the death of the
employee, if there is a designated
beneficiary under the impermissible
annuity distribution option for purposes
of section 401(a)(9), the permissible
annuity distribution option is the joint
and survivor annuity option under the
plan for the lives of the employee and
the designated beneficiary that provides
for the greatest level amount payable to
the employee determined on an annual
basis. If the plan does not provide such
an option or there is no designated
beneficiary under the impermissible
distribution option for purposes of
section 401(a)(9), the permissible
annuity distribution option is the life
annuity option under the plan payable
for the life of the employee in level
amounts with no survivor benefit.
(ii) In the case of distributions
commencing after the death of the
employee, if there is a designated
beneficiary under the impermissible
annuity distribution option for purposes
of section 401(a)(9), the permissible
annuity distribution option is the life
annuity option under the plan payable
for the life of the designated beneficiary
in level amounts. If there is no
designated beneficiary, the 5-year rule
in section 401(a)(9)(B)(ii) applies. See
paragraph (b)(3) of this A–4. The
determination of whether or not there is
a designated beneficiary and the
determination of which designated
beneficiary’s life is to be used in the
case of multiple beneficiaries will be
made in accordance with § 1.401(a)(9)–

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19027

4 and A–7 of § 1.401(a)(9)–5. If the
defined benefit plan does not provide
for distribution in the form of the
applicable permissible distribution
option, the required minimum
distribution for each calendar year will
be an amount as determined by the
Commissioner.
(2) If the qualified retirement plan
under which distributions are being
made is a defined contribution plan and
the impermissible annuity distribution
option is an annuity contract purchased
from an insurance company, the
minimum distribution amount required
to be distributed each year will be the
amount that would have been
distributed in the form of an annuity
contract under the permissible annuity
distribution option under the plan
determined in accordance with
paragraph (b)(1) of this A–4 for defined
benefit plans. If the defined contribution
plan does not provide the applicable
permissible annuity distribution option,
the required minimum distribution for
each calendar year will be the amount
that would have been distributed under
an annuity described in paragraph
(b)(2)(i) or (ii) of this A–4 purchased
with the employee’s or individual’s
account used to purchase the annuity
contract that is the impermissible
annuity distribution option.
(i) In the case of distributions
commencing before the death of the
employee, if there is a designated
beneficiary under the impermissible
annuity distribution option for purposes
of section 401(a)(9), the annuity is a
joint and survivor annuity for the lives
of the employee and the designated
beneficiary which provides level annual
payments and which would have been
a permissible annuity distribution
option. However, the amount of the
periodic payment which would have
been payable to the survivor will be the
applicable percentage under the table in
A–2(c) of § 1.401(a)(9)–6T of the amount
of the periodic payment which would
have been payable to the employee or
individual. If there is no designated
beneficiary under the impermissible
distribution option for purposes of
section 401(a)(9), the annuity is a life
annuity for the life of the employee with
no survivor benefit which provides level
annual payments and which would
have been a permissible annuity
distribution option.
(ii) In the case of a distribution
commencing after the death of the
employee, if there is a designated
beneficiary under the impermissible
annuity distribution option for purposes
of section 401(a)(9), the annuity option
is a life annuity for the life of the
designated beneficiary which provides

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Federal Register / Vol. 67, No. 74 / Wednesday, April 17, 2002 / Rules and Regulations

level annual payments and which
would have been a permissible annuity
distribution option. If there is no
designated beneficiary, the 5-year rule
in section 401(a)(9)(B)(ii) applies. See
paragraph (b)(3) of this A–4. The
amount of the payments under the
annuity contract will be determined
using the interest rate and actuarial
tables prescribed under section 7520
determined using the date determined
under A–3 of § 1.401(a)(9)–3 when
distributions are required to commence
and using the age of the beneficiary as
of the beneficiary’s birthday in the
calendar year that contains that date.
The determination of whether or not
there is a designated beneficiary and the
determination of which designated
beneficiary’s life is to be used in the
case of multiple beneficiaries will be
made in accordance with § 1.401(a)(9)–
4 and A–7 of § 1.401(a)(9)–5.
(3) If the 5-year rule in section
401(a)(9)(B)(ii) applies to the
distribution to the payee under the
contract (or distribution option), no
amount is required to be distributed to
satisfy the applicable enumerated
section in paragraph (a) of this A–4 until
the calendar year which contains the
date 5 years after the date of the
employee’s death. For the calendar year
which contains the date 5 years after the
employee’s death, the required
minimum distribution amount required
to be distributed to satisfy the
applicable enumerated section is the
payee’s entire remaining interest in the
annuity contract (or under the plan in
the case of distributions from a defined
benefit plan).
(4) If the plan provides that the
required beginning date for purposes of
section 401(a)(9) for all employees is
April 1 of the calendar year following
the calendar year in which the
employee attained age 701⁄2 in
accordance with paragraph A–2(e) of
§ 1.401(a)(9)–2, the required minimum
distribution for each calendar year for
an employee who is not a 5-percent
owner for purposes of this section will
be the lesser of the amount determined
based on the required beginning date as
set forth in A–2(a) of § 1.401(a)(9)–2 or
the required beginning date under the
plan. Thus, for example, if an employee
dies after attaining age 701⁄2, but before
April 1 of the calendar year following
the calendar in which the employee
retired, and there is no designated
beneficiary as of September 30 of the
year following the employee’s year of
death, required minimum distributions
for calendar years after the calendar year

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containing the employee’s date of death
may be based on either the applicable
distribution period provided under
either the 5-year rule of A–1 of
§ 1.401(a)(9)–3 or the employee’s
remaining life expectancy as set forth in
A–5(c)(3) of § 1.401(a)(9)–5.
Q–5. If there is any remaining benefit
with respect to an employee (or IRA
owner) after any calendar year in which
the entire remaining benefit is required
to be distributed under section
401(a)(9), what is the amount of the
required minimum distribution for each
calendar year subsequent to such
calendar year?
A–5. If there is any remaining benefit
with respect to an employee (or IRA
owner) after the calendar year in which
the entire remaining benefit is required
to be distributed, the required minimum
distribution for each calendar year
subsequent to such calendar year is the
entire remaining benefit.
Q–6. With respect to which calendar
year is the excise tax under section 4974
imposed in the case in which the
amount not distributed is an amount
required to be distributed by April 1 of
a calendar year (by the employee’s or
individual’s required beginning date)?
A–6. In the case in which the amount
not paid is an amount required to be
paid by April 1 of a calendar year, such
amount is a required minimum
distribution for the previous calendar
year, i.e., for the employee’s or the
individual’s first distribution calendar
year. However, the excise tax under
section 4974 is imposed for the calendar
year containing the last day by which
the amount is required to be distributed,
i.e., the calendar year containing the
employee’s or individual’s required
beginning date, even though the
preceding calendar year is the calendar
year for which the amount is required
to be distributed. There is also a
required minimum distribution for the
calendar year which contains the
employee’s or individual’s required
beginning date. Such distribution is also
required to be made during the calendar
year which contains the employee’s or
individual’s required beginning date.
Q–7. Are there any circumstances
when the excise tax under section 4974
for a taxable year may be waived?
A–7. (a) Reasonable cause. The tax
under section 4974(a) may be waived if
the payee described in section 4974(a)
establishes to the satisfaction of the
Commissioner the following—
(1) The shortfall described in section
4974(a) in the amount distributed in any
taxable year was due to reasonable error;
and

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(2) Reasonable steps are being taken to
remedy the shortfall.
(b) Automatic waiver. The tax under
section 4974 will be automatically
waived, unless the Commissioner
determines otherwise, if—
(1) The payee described in section
4974(a) is an individual who is the sole
beneficiary and whose required
minimum distribution amount for a
calendar year is determined under the
life expectancy rule described in
§ 1.401(a)(9)–3 A–3 in the case of an
employee’s or individual’s death before
the employee’s or individual’s required
beginning date; and
(2) The employee’s or individual’s
entire benefit to which that beneficiary
is entitled is distributed by the end of
the fifth calendar year following the
calendar year that contains the
employee’s or individual’s date of
death.
PART 602—OMB CONTROL NUMBERS
UNDER THE PAPERWORK
REDUCTION ACT
Par. 7. The authority citation for part
602 continues to read as follows:
Authority: 26 U.S.C. 7808.

Par. 8. In § 602.101, paragraph (b) is
amended by adding entries for
‘‘1.401(a)(9)–1,’’ ‘‘1.401(a)(9)–3,’’
‘‘1.401(a)(9)–4,’’ and ‘‘1.403(b)–3’’ to the
table to read as follows:
§ 602.101

*

OMB Control numbers.

*
*
(b) * * *

*

*

CFR part or section where
identified and described

Current OMB
control No.

*
*
*
*
*
1.401(a)(9)–1 ..........................
1545–1573
*
*
*
*
*
1.401(a)(9)–3 ..........................
1545–1466
*
*
*
*
*
1.401(a)(9)–4 ..........................
1545–1573
*
*
*
*
*
1.403(b)–3 ..............................
1545–0996
*

*

*

*

*

Robert E. Wenzel,
Deputy Commissioner of Internal Revenue.
Approved: March 26, 2002.
Mark Weinberger,
Assistant Secretary of the Treasury.
[FR Doc. 02–8963 Filed 4–16–02; 8:45 am]
BILLING CODE 4830–01–P

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