Installment payment question

[FundeK]

Participant (age 65) would like to change installment amount from $300 to $600 monthly. current balance is $14,000. Can the payments be considered installment payments (0% tax withheld) after the change in $ amount, or are they now taxable as "eligble for rollover" (20% mandatory withholding). I think I found in my reading that the new payment amount must qualify as an installment (life of participant or 10 years) ignoring all previous payments. In this case, the payments would not extend 10 years, and the participant is only age 65. Or, is there something I am missing because the participant is over the age of 59 1/2?

Thanks!!

[FundeK]

Okay, I found the answer to my original question but now I have an additional question. Can someone please provide clarification on Treas Reg 1.402©-2 Q&A5?

Q- 5. For purposes of determining whether a distribution is an eligible rollover distribution, how is it determined whether a series of payments is a series of substantially equal periodic payments over a period specified in section 402©(4)(A)?

© Changes in the amount of payments or the distributee. If the amount (or, if applicable, the method of calculating the amount) of the payments changes so that subsequent payments are not substantially equal to prior payments, a new determination must be made as to whether the remaining payments are a series of substantially equal periodic payments over a period specified in Q&A-3(b)(1) of this section. This determination is made without taking into account payments made or the years of payment that elapsed prior to the change. However, a new determination is not made merely because, upon the death of the employee, the spouse or former spouse of the employee becomes the distributee. Thus, once distributions commence over a period that is at least as long as either the first annuitant's life or 10 years (e.g., as provided by a life annuity with a five-year or ten-year-certain guarantee), then substantially equal payments to the survivor are not eligible rollover distributions even though the payment period remaining after the death of the employee is or may be less than the period described in section 402©(4)(A). For example, substantially equal periodic payments made under a life annuity with a five-year term certain would not be an eligible rollover distribution even when paid after the death of the employee with three years remaining under the term certain.

Does the bolded section imply that a spousal beneficiary can take intallment payments for any term (even less than 10 years), and the payments will be considered "ineligible for rollover", or does this mean that as long as the payments have started, the remaining payments (even if remaining payments are less than 10 years) will be considered "ineligible for rollover"?