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Employee Benefits > Minimum Distribution Rules

The following information is about Minimum Distribution Rules.

Minimum Distribution Rules Defined

Provisions of the Code which effectively limit the extent that a participant may defer the receipt of distributions from a retirement plan. These rules generally require distributions to begin when an employee attains age 70-1/2 and specifies a minimum amount that must be distributed in order to avoid the imposition of an excise tax. These rules are designed to ensure that benefits which may ultimately be paid to a beneficiary are incidental to benefits which are payable to a client participant.

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