Participant Death Surviving Spouse over 70.5 RMD?

[Guest SLBRB]

I've had a participant death over the weekend where the participant was age 65 and his surviving spouse is age 76. Normally she would have the 5 year window in which to decide how to handle the distribution, but I'm wondering if an immediate RMD to her must be processed before I do anything else. And

if she doesn't request his vested account balance immediately would I continue to process them annually until distribution has been completed?

[Tom Poje]

here is what I have in my notes

(it really depends on the document)

5 year rule: Benefit must be completely distributed within 5 years of the death. IRC § 401(a)(9)(B)(ii), Treas Reg § 1.401 (a)(9)-3, Q&A-2 The ‘5 years’ extends to the end of the calendar year (December 31)

e.g. EE dies January 1, 2003.

5 years is January 1, 2008, extended to December 31, 2008.

Does not matter who the beneficiary is.

If no beneficiary specified, and document does not contain a provision, must use this method Treas Reg. § 1.401 (a)(9)-3, Q&A-4(a)(2)

Or see Publication 575

Life Expectancy Rule:

Makes a difference if beneficiary is spouse!

Non-spouse: must start receiving payments by December 31 of the calendar year following the calendar year the participant died. IRC § 401(a)(9)(B)(iii), Treas Reg § 1.401 (a)(9)-3 Q&A3(a)

Spousal exception: 12/31 of year participant would have turned age 70 ½ (or, if later, must start receiving payments by December 31 of the calendar year following the calendar year the participant died).

If beneficiary specified, and document does not contain a provision, must use this method Treas Reg § 1.401 (a)(9)-3, Q&A-4(a)(1)