436 versus 401(a)(9)

[Guest Bevans7]

Has anyone run into a situation where a plan subject to funding restrictions under Code Section 436 is required to pay out a death benefit over 5 years to meet the RMD requirements of 401(a)(9)? Normally the RMD rules take precedence, but I am not sure that is true in this situation. Any assistance would be appreciated.

[Guest Quagmire]

Has anyone run into a situation where a plan subject to funding restrictions under Code Section 436 is required to pay out a death benefit over 5 years to meet the RMD requirements of 401(a)(9)? Normally the RMD rules take precedence, but I am not sure that is true in this situation. Any assistance would be appreciated.

Reportedly the IRS knows that the two requirements are potentially in conflict for non-person beneficiaries, but does not know how to reconcile them. Neither one has precedence. Probably a technical correction is required. For a beneficiary who is a person, the RMD can be met over that person's life expectancy. See § 1.401(a)(9)-3 A-1.(a).

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