Section 45-8A-22.85 Distribution of benefits.
Section 45-8A-22.85
Distribution of benefits.
(a) Benefit payments under this plan must begin by the later of April 1 of the calendar year following the year in which the employee reaches age 70 1/2 or retires from active employment. The employee's entire interest in the plan must be distributed over the life of the employee or the lives of the employee and a designated beneficiary, over a period not extending beyond the life expectancy of the employee or the employee and designated beneficiary.
(b) When an employee dies after distribution of benefits has begun, the remaining portion of the employee's interest shall be distributed at least as rapidly as under the method of distribution prior to the employee's death.
(c) When an employee dies before distribution of benefits has begun, the entire interest of the employee shall be distributed within five years of the employee's death. The five-year payment rule does not apply to any portion of the employee's interest which is payable to a designated beneficiary over the life or the life expectancy of the beneficiary and which begins within one year after the date of the employee's death. The five-year payment rule does not apply to any portion of the employee's interest which is payable to a surviving spouse over the life or life expectancy of the spouse which begins no later than the date the employee would have reached age 70 1/2.
(Act 2002-298, p. 815, §27; Act 2002-304, p. 841, §27.)