Common use of Required Beginning Clause in Contracts

Required Beginning. DATE If this Plan is an amendment or restatement of a Plan which included the provisions of the minimum distribution rules as in effect prior to the enactment of the Small Business Job Protection Act of 1996 (SBJPA), the Employer may elect in the Adoption Agreement to substitute the minimum distribution rules in effect after the enactment of SBJPA. The Employer, so electing, must also elect in the Adoption Agreement those transitional rules that shall apply to its Plan. (a) The Required Beginning Date for a Participant who is a 5% owner with respect to the Plan Year ending in the calendar year in which the Participant attains age 70 1/2 is the April 1 of the calendar year following the calendar year in which the Participant attains age 70 1/2. Once distributions have begun to a 5% owner under this paragraph, they must continue to be distributed even if the Participant ceases to be a 5% owner in any subsequent year. (b) Unless the Employer has elected to continue to operate the provisions of the minimum required distribution in accordance with the provisions prior to the enactment of the SBJPA, or if elected otherwise in the Adoption Agreement or by operation of the Plan, the Required Beginning Date for a Participant who is not a 5% owner is no later than the April 1 of the calendar year following the later of the calendar year in which the Participant attains age 70 1/2 or the calendar year in which the Participant retires. (c) If the Employer has elected to continue under the prior provisions of the law, then except as provided below, the Required Beginning Date is the April 1 of the calendar year following the calendar year in which a Participant attains age 70 1/2.

Required Beginning. DATE If this Plan is an amendment or restatement of a Plan which included the provisions of the minimum distribution rules as in effect prior to the enactment of the Small Business Job Protection Act of 1996 (SBJPA), the Employer may elect in the Adoption Agreement to substitute the minimum distribution rules in effect after the enactment of SBJPA. The Employer, so electing, must also elect in the Adoption Agreement those transitional rules that shall apply to its Plan. (a) The Required Beginning Date for a Participant who is a 5% owner with respect to the Plan Year ending in the calendar year in which the Participant attains age 70 1/2 is the April 1 of the calendar year following the calendar year in which the Participant attains age 70 1/2. Once distributions have begun to a 5% owner under this paragraph, they must continue to be distributed even if the Participant ceases to be a 5% owner in any subsequent year. (b) Unless the Employer has elected to continue to operate the provisions of the minimum required distribution in accordance with the provisions prior to the enactment of the SBJPA, or if elected otherwise in the Adoption Agreement or by operation of the Plan, the Required Beginning Date for a Participant who is not a 5% owner is no later than the April 1 of the calendar year following the later of the calendar year in which the Participant attains age 70 1/2 or the calendar year in which the Participant retires. (c) If the Employer has elected to continue under the prior provisions of the law, then except as provided below, the Required Beginning Date is the April 1 of the calendar year following the calendar year in which a Participant attains age 70 1/2. (1) A Participant who: