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WAC 415-501-491

How will the account be distributed if my beneficiary is not my spouse?

If you die with money in your account and your beneficiary is an individual other than your spouse, your account will be distributed in accordance with this rule. An account will be established in the name of your beneficiary.
(1) For rules governing distribution to an entity other than an individual (e.g., a trust, estate, or organization), see WAC  415-501-493.
(2) The distribution options will be mailed to your beneficiary when DCP is notified of your death. Your beneficiary may choose any method of distribution (annuity, periodic payments, or lump sum) that provides at least the required minimum distribution each calendar year until your account is exhausted.
(a) The department must receive your election form at least thirty days before distribution is to begin.
(b) Periodic distributions must total at least six hundred dollars per year.
(c) Receiving more than the required minimum distribution during one calendar year does not excuse your beneficiary from taking the required minimum in any calendar year to which the required minimum applies.
(3) Required minimum distribution.
(a) First required distribution if you die before your "required beginning date" (see WAC 415-501-485 (1)(b)), your beneficiary may chose to receive the required minimum distribution under either the "life expectancy rule" or the "five year rule." Your beneficiary must elect one of the two rules at least thirty days before distribution would be required to begin under the life expectancy rule. If a timely election is not received, your beneficiary will be required to receive the required minimum distribution under the "five year rule."
(i) Life expectancy rule. Distribution under this rule allows your beneficiary to spread distribution over his or her life expectancy. Beginning in the calendar year following the calendar year of your death, your beneficiary must receive a required minimum distribution. This distribution must be taken by December 31st of the calendar year.
(ii) Five year rule. Under this rule, the first mandatory distribution is later than under the life expectancy rule. However, the beneficiary's entire account must be distributed on or before December 31st of the fifth calendar year following the calendar year of your death.
(b) First required distribution if you die after your "required beginning date" (see WAC 415-501-485 (1)(b)), your beneficiary must receive a required minimum distribution during the calendar year following the year of your death. The distribution must be taken by December 31st of the applicable calendar year.
(c) Your beneficiary must receive a required minimum distribution during each subsequent calendar year until the account is exhausted.
(d) The required minimum distribution in each of the relevant calendar years is based on life expectancies set forth in the treasury regulations.
(4) If your beneficiary dies before his or her entire account is exhausted, the remainder of the account will be paid to his or her estate.
[Statutory Authority: RCW 41.50.050(5). WSR 14-10-045, § 415-501-491, filed 4/30/14, effective 6/1/14. Statutory Authority: RCW 41.50.050(5), 41.50.780(10), and 41.50.770. WSR 04-22-053, § 415-501-491, filed 10/29/04, effective 11/29/04. Statutory Authority: RCW 41.50.050(5), 41.50.030(2), 41.50.088(2), 41.50.770, and 41.50.780, 26 U.S.C. (Internal Revenue Code) and related tax regulations. WSR 02-01-121, § 415-501-491, filed 12/19/01, effective 1/1/02.]
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