Missing Participants And Beneficiaries And Required Minimum Distributions

Seyfarth Synopsis: The Internal Revenue Service released guidance detailing specific procedures qualified retirement plans may utilize to satisfy required minimum distribution standards for missing participants and beneficiaries.

Internal Revenue Code section 401(a)(9) establishes required minimum distribution ("RMD") standards for qualified retirement plans. Generally, these standards require a participant's benefit payments to begin no later than April 1 of the calendar year after the participant attains the age 70½ or retires. In the case of a deceased participant, RMD payments must generally be made to a non-spouse beneficiary within five calendar years after the year of the participant's death. The Internal Revenue Service ("IRS") has released administrative guidance regarding how qualified retirement plans may satisfy RMD standards when the participant or beneficiary to whom the payment is due cannot be located.