AJCA, NQ, Whose death?

[smm]

Under AJCA, distributions are permissible upon "death". Whose death is the statute referring to? Is it only the participant's death? If so, why? The statute refers to the "participant's disability" ((2)(A)(ii)), but simply uses the term "death" ((2)(A)(iii)). Presumably, it could be the death of someone else, but then would it be a specified event which is not allowed? In the case of an arrangement that covers employees, could it be the sole shareholder's death (the shareholder does not participate in the plan)? The committee reports appear to be silent on this (unless I missed the discussion).

Thanks in advance for your thoughts.

[Everett Moreland]

IRC Section 401(k)(2)(B)(i)(I) has a similar ambiguity. 1.401(k)-1(d)(1)(i) resolves the ambiguity by requiring that it be "The employee's . . . death."

[smm]

Thank you for the reference.