Haw. Code R. § 14-44-24 - Election to commence benefits

(a) Upon separation from service, but not later than thirty days after the close of the calendar year in which the participant separates from service, a participant may elect to have benefits commence at a fixed future time within limits allowed under section 14-44-21 (c). The election shall be made on a distribution request form, which shall be filed with the administrator and subject to the administrator's approval.

(b) In the absence of an election within the prescribed time under subsection (a), benefits shall commence at the latest time provided under section 14-44-21(c), or as prescribed under the Code, as amended.

(c) Before commencement of distributions under subsection (a) or (b), as applicable, a participant may elect to further delay commencement of the distributions. The participant may make such an election only once and delayed distributions shall not commence later than the required beginning date specified in section 401(a)(9) of the Code. The election to delay shall be made on a distribution request form, which shall be filed with the administrator and subject to the administrator's approval.

(d) A required minimum distribution shall commence no later than April 1 of the year following the calendar year in which the participant attains the age of 70 1/2 years by December 31, 2019, or the age of seventy-two years, provided the participant attains the age of 70 1/2 years after calendar year 2019; or by April 1 of the year following the year in which the participant retires or has otherwise separated from service, and as prescribed under the Code.

(e) A participant or a participant's beneficiary who would have satisfied the required minimum distribution for the calendar year 2020 by receiving a required minimum distribution that is:

(1) A single sum equal to the 2020 required minimum distribution will be waived; or

(2) If paid in a series of substantially equal periodic payments made at least annually and expected to last for the life expectancy of the participant, the joint life expectancies of the participant and the participant's designated beneficiary, or for a period of at least ten years, periodic payments will continue as scheduled.

(f) A participant or a participant's beneficiary may otherwise choose to elect to receive a single sum equal to the 2020 required minimum distribution that was waived or may choose to waive and not receive any periodic payment that is the required distribution for the calendar year 2020 effective April 24, 2020 and pursuant to section 2203 of the CARES Act.

(g) A repayment of a required minimum distribution that a participant received in calendar year 2020 shall be treated as an eligible rollover distribution.

Notes

Haw. Code R. § 14-44-24

[Eff. 5/12/83; am JAN 05 1998] (Auth: HRS § 88E-3) (Imp: HRS § 88E-3) Am and comp 10/7/2023