• Required Beginning Date. April 1 of the year following the calendar year in which you attain age 70 1/2.
• First Distribution Year. The year you attain age 70 1/2. Even though the actual distribution year may be delayed up to April 1 of the following year, the amount is the same as if paid out without a delay.
• Minimum Required Distribution (MRD). The minimum withdrawal necessary to avoid a 50% tax penalty.
• Applicable Life Expectancies (ALE). A factor found in IRS Tables V and VI, indicating the individual or joint life expectancy of both the participant and the beneficiary.
• Account Plan. Applicable rules for any individual account type plan in which an anniuty is not purchased.
• Term Certain Method. With this approach the applicable life expectancy (ALE) is reduced by one each distribution year.
• Recalculation Method. With this approach, the ALE factor is recalculated each distribution year using IRS Tables V and VI. Only the participant and/or the spouse may recalculate life expectancies; a non-working beneficiary may not recalculate.
• Mimimum Distribution Incidental Benefits Rule (MDIB). Requires a larger distribution than under the ALE approach, but only when the beneficiary is a non-spouse more than 10 years younger than the participant.
• Applicable Divisor. The number under the MDIB rule which is substituted for the ALE when the non-spousal beneficiary is more than 10 years younger than the participant.

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