N.J. Admin. Code § 17:6-11.2

Current through Register Vol. 56, No. 23, December 2, 2024

Section 17:6-11.2 - Minimum distribution

(a) The requirements of this section will take precedence over any inconsistent provisions of this chapter.

(b) All distributions required under this section will be determined and made in accordance with IRC § 401(a)(9) and the Treasury Regulations under IRC § 401(a)(9).

(c) Distributions to a participant and his or her beneficiaries under this section shall only be made in accordance with the incidental death benefit requirements of IRC § 401(a)(9)(G) and the Treasury Regulations thereunder.

1. The participant's entire interest will be distributed, or begin to be distributed, to the participant no later than the participant's required beginning date (as defined in 17:6-11.3) .

2. If the participant dies before distributions begin, and subject to the payment option(s), if any, in fact permitted by the Plan Administrator in addition to a single sum distribution, the participant's entire interest must be distributed, or begin to be distributed, no later than as follows:

i. If the participant's surviving spouse is the participant's sole designated beneficiary, then distributions to the surviving spouse will begin by December 31 of the calendar year immediately following the calendar year in which the participant died, or by December 31 of the calendar year in which the participant would have attained age 70 1/2, if later.

ii. If the participant's surviving spouse is not the participant's sole designated beneficiary, then distributions to the designated beneficiary will begin by December 31 of the calendar year immediately following the calendar year in which the participant died.

iii. If there is no designated beneficiary as of September 30 of the year following the year of the participant's death, the participant's entire interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the participant's death.

iv. If the participant's surviving spouse is the participant's sole designated beneficiary and the surviving spouse dies after the participant but before distributions to the surviving spouse begin, this subparagraph, rather than (c)2i above, will apply as if the surviving spouse were the participant. For purposes of this subsection, unless this subparagraph applies, distributions are considered to begin on the participant's required beginning date (as defined in 17:6-11.3) . If this subparagraph applies, distributions are considered to begin on the date distributions are required to begin to the surviving spouse under (c)2i above. If distributions under an annuity purchased from an insurance company irrevocably commence to the participant before the participant's required beginning date or to the participant's surviving spouse before the date distributions are required to begin to the surviving spouse, the date distributions are considered to begin is the date distributions actually commence.

3. If the participant's interest is distributed in the form of an annuity purchased from an insurance company, distributions thereunder will be made in accordance with the requirements of IRC § 401(a)(9) and the Treasury Regulations thereunder.

N.J. Admin. Code § 17:6-11.2