Required distribution where employee dies before entire interest is distributed.—
(i) Where distributions have begun under subparagraph (A)(ii).—
(i)Where distributions have begun under subparagraph (A)(ii).—#
A trust shall not constitute a qualified trust under this section unless the plan provides that if—
(I) the distribution of the employee’s interest has begun in accordance with subparagraph (A)(ii), and
(II) the employee dies before his entire interest has been distributed to him,
(i)(I)#
the distribution of the employee’s interest has begun in accordance with subparagraph (A)(ii), and
(i)(II)#
the employee dies before his entire interest has been distributed to him,
(ii)5- year rule for other cases .—#
A trust shall not constitute a qualified trust under this section unless the plan provides that, if an employee dies before the distribution of the employee’s interest has begun in accordance with subparagraph (A)(ii), the entire interest of the employee will be distributed within 5 years after the death of such employee.
(iii)Exception to 5-year rule for certain amounts payable over life of beneficiary .—#
If—
(I) any portion of the employee’s interest is payable to (or for the benefit of) a designated beneficiary,
(II) such portion will be distributed (in accordance with regulations) over the life of such designated beneficiary (or over a period not extending beyond the life expectancy of such beneficiary), and
(III) such distributions begin not later than 1 year after the date of the employee’s death or such later date as the Secretary may by regulations prescribe,
(iii)(I)#
any portion of the employee’s interest is payable to (or for the benefit of) a designated beneficiary,
(iii)(II)#
such portion will be distributed (in accordance with regulations) over the life of such designated beneficiary (or over a period not extending beyond the life expectancy of such beneficiary), and
(iii)(III)#
(iv)Special rule for surviving spouse of employee .—#
If the designated beneficiary referred to in clause (iii)(I) is the surviving spouse of the employee and the surviving spouse elects the treatment in this clause—
(I) the regulations referred to in clause (iii)(II) shall treat the surviving spouse as if the surviving spouse were the employee,
(II) the date on which the distributions are required to begin under clause (iii)(III) shall not be earlier than the date on which the employee would have attained the applicable age, and
(III) if the surviving spouse dies before the distributions to such spouse begin, this subparagraph shall be applied as if the surviving spouse is the employee.
(iv)(I)#
the regulations referred to in clause (iii)(II) shall treat the surviving spouse as if the surviving spouse were the employee,
(iv)(II)#
the date on which the distributions are required to begin under clause (iii)(III) shall not be earlier than the date on which the employee would have attained the applicable age, and