ELIGIBLE BENEFICIARY: DISABLED OR CHRONICALLY ILL
01.Core Concepts
• Beneficiary disabled or chronically ill at the time of the participant’s death • Beneficiaries that later become disabled do not qualify • Qualification requirements for disability • Unable to engage in any substantial gainful activity • Medically determined physical or mental impairment resulting in death or indefinite duration • Certification is required for qualified plans • Qualification requirements for chronically ill • Licensed health professional ce rtifies beneficiary is unable to perform two activities of daily living for an indefinite time • Certifying documentation must be provided to the plan administrator by October 31st of the year following the participant’s death. NO DESIGNATED BENEFICARY - DEATH AFTER 2019: AFTER RBD • RMD rules are the same as they were prior to the SECURE Act. • No beneficiary named by September 30 of the year following death (or the beneficiary is the estate or a charity) • Minimum distributions continue over the remaining life expectancy of the deceased owner, reduced by one each year. • Distributions can be made faster than the calculated minimum.