Section 2700.710  Beneficiary Election of Method of Distribution

a)         Commencing in the calendar year following the calendar year of the Participant's death, the Participant's Account Balance shall be paid to the Beneficiary in a lump sum.

b)         Alternatively, if the Beneficiary with respect to the Participant's Account Balance is a natural person, at the Beneficiary's election, distribution can be made in annual installments (calculated in a manner that is similar to installments under Section 2700.730 of this Part) with the distribution period determined in the following manner:

1)         If the Beneficiary is the Participant's surviving spouse, the distribution period is equal to the Beneficiary's life expectancy using the single life table in 26 CFR 1.401(a)(9)-9, A-1 (2005) for the spouse's age on the spouse's birthday for that year.

2)         If the Beneficiary is not the Participant's surviving spouse, the distribution period is the Beneficiary's life expectancy determined in the year following the year of the Participant's death using the single life table in 26 CFR 1.401(a)(9)-9, A-1 (2005) for the Beneficiary's age on the Beneficiary's birthday for that year, reduced by one for each year that has elapsed after that year.

c)         For any year, a Beneficiary can elect distribution of a greater amount (not to exceed the amount of the remaining Account Balance) rather than the amount calculated under Section 2700.710(b).

(Source:  Amended at 30 Ill. Reg. 8408, effective April 21, 2006)