Special rules for certain defined contribution plans .—
In the case of a defined contribution plan, if an employee dies before the distribution of the employee’s entire interest—
(i) In general .—
(i)In general .—#
Except in the case of a beneficiary who is not a designated beneficiary, subparagraph (B)(ii)—
(I) shall be applied by substituting “10 years” for “5 years”, and
(II) shall apply whether or not distributions of the employee’s interests have begun in accordance with subparagraph (A).
(i)(I)#
shall be applied by substituting “10 years” for “5 years”, and
(i)(II)#
shall apply whether or not distributions of the employee’s interests have begun in accordance with subparagraph (A).
(ii)Exception for eligible designated beneficiaries .—#
Subparagraph (B)(iii) shall apply only in the case of an eligible designated beneficiary.
(iii)Rules upon death of eligible designated beneficiary .—#
If an eligible designated beneficiary dies before the portion of the employee’s interest to which this subparagraph applies is entirely distributed, the exception under clause (ii) shall not apply to any beneficiary of such eligible designated beneficiary and the remainder of such portion shall be distributed within 10 years after the death of such eligible designated beneficiary.
(iv)Special rule in case of certain trusts for disabled or chronically ill beneficiaries .—#
In the case of an applicable multi-beneficiary trust, if under the terms of the trust—
(I) it is to be divided immediately upon the death of the employee into separate trusts for each beneficiary, or
(II) no beneficiary (other than a 1 1 So in original. Probably should be “an”. eligible designated beneficiary described in subclause (III) or (IV) of subparagraph (E)(ii)) has any right to the employee’s interest in the plan until the death of all such eligible designated beneficiaries with respect to the trust,
(iv)(I)#
it is to be divided immediately upon the death of the employee into separate trusts for each beneficiary, or
(iv)(II)#
no beneficiary (other than a 1 1 So in original. Probably should be “an”. eligible designated beneficiary described in subclause (III) or (IV) of subparagraph (E)(ii)) has any right to the employee’s interest in the plan until the death of all such eligible designated beneficiaries with respect to the trust,
(v)Applicable multi-beneficiary trust .—#
For purposes of this subparagraph, the term “applicable multi-beneficiary trust” means a trust—
(I) which has more than one beneficiary,
(II) all of the beneficiaries of which are treated as designated beneficiaries for purposes of determining the distribution period pursuant to this paragraph, and
(III) at least one of the beneficiaries of which is an eligible designated beneficiary described in subclause (III) or (IV) of subparagraph (E)(ii).
(v)(I)#
which has more than one beneficiary,
(v)(II)#
all of the beneficiaries of which are treated as designated beneficiaries for purposes of determining the distribution period pursuant to this paragraph, and
(v)(III)#
at least one of the beneficiaries of which is an eligible designated beneficiary described in subclause (III) or (IV) of subparagraph (E)(ii).
(vi)Application to certain eligible retirement plans .—#
For purposes of applying the provisions of this subparagraph in determining amounts required to be distributed pursuant to this paragraph, all eligible retirement plans (as defined in section 402(c)(8)(B), other than a defined benefit plan described in clause (iv) or (v) thereof or a qualified trust which is a part of a defined benefit plan) shall be treated as a defined contribution plan.