TAX 9873 Lecture Notes - Lecture 15: Life Annuity, Pension, Mutual Fund
Document Summary
Normal retirement age (nra) under a qualified plan may not exceed the later of: (1) the date the participant reaches age 65, or (2) the date which is the 5th anniversary of an employee"s participation commencement date. No 10% distribution penalty if over age 59 (including for financial hardship) Catch up limit: age 50+ (this means the limit under 402(g)=19,000 is increased by 6,000 if you are age 50 or above) Qualified 401(k): may not impose an age or service requirement for participation in the coda which requires more than one year of service or a minimum age greater than 21. Minimum distribution requirements are imposed on participant once they reach the age of 70 . Pbgc guarantee limit: maximum single life annuity is ,136 at age 65. Esop requirement: diversification rights for participants age 55 with 10 years of participation. 403(b) plan: requirement for catch up only for employees with at least 15 years of service.
