NONSPOUSE ELIGIBLE DESIGNATED BENEFICARY
01.Core Concepts
DEATH AFTER 2019: AFTER RBD • Nonspouse eligible beneficiary may choose to distribute over the longer of: • The beneficiary’s single life expectancy or • The remaining single life expectancy of the deceased participant. • RMDs must continue each year, beginning in the year following the year of death. ELIGIBLE BENEFICIARY: MINOR CHILD OF THE DECEASED PARTICIPANT • A minor child (stepchild, adopted child or eligible foster child) is an eligible designated beneficiary until the age of majority (age 21). • A minor child becomes an ineligible beneficiary at age 21. • Any remaining interest in the account must be distributed within 10 years. • A minor child who was also disabled or chronically ill at the time of the participant’s death can continue to be an eligible beneficiary beyond age 21. • Timely documentation must be filed – see next slide. • A grandchild of the deceased participant is an ineligible beneficiary.