4079 / What minimum distributions requirements apply under Section 401(a)(9) during the life of a tax sheltered annuity participant if distributions are not made as annuity payments?

Under 2002 regulations, if distributions are not made as annuity payments under an annuity contract, the account balance generally is distributed according to a uniform lifetime table.¹ The minimum required to be distributed each year is determined by dividing the post-1986 account balance as of the end of the preceding year by the applicable distribution period of the participant as found in the table. For an example of a calculation under this method, see Q 3686. The amount of an individual’s lifetime required distribution is calculated without regard to the beneficiary’s age, except in the case of a spouse beneficiary who is more than 10 years younger than the participant.²

If a sole designated beneficiary is a participant’s spouse, the distribution period during the participant’s lifetime is the longer of the uniform lifetime table or the joint and survivor life expectancy of the participant and spouse³ using their attained ages in the distribution calendar year.⁴ As a practical matter, the joint and survivor life expectancy table will produce a longer and thus lower payout only if the spouse beneficiary is more than 10 years younger than the participant.

1.  Treas. Reg. § 1.401(a)(9)-9, A-2.