Required Beginning Date

The latest date that a minimum distribution must begin.  Generally it is the April 1 of the year following the calendar year in which the participant attains age 70 1/2.

First Distribution Year

The first year for which a distribution must be made under the minimum distribution rules. Generally a minimum distribution must be made for the year in which the participant attains age 70 1/2, even if the required beginning date is the following April 1.

Sec. 242(b) Election

Grandfathered favorable tax treatment for qualified plan and 403(b) distributions

Involuntary Cashout Option

When a participant terminates employment with a vested benefit of less than $5,000, the plan can procide that such small benefits will be cashed out in a lump sum.

Installment Payout

Participans in a plan elect a payout length and, based on earnings assumptions, a payout amount will also be determined.

Actuarial Equivalent

The value of different benefit options is altered to accommodate the uniqueness of the benefit form. This means that if, for example, the participant chooses a lump-sum benefit, the amount of the lump sum is based on the single sum value of a life annuity using the actuarial assumptions prescribed by the plan.

Subsidized Benefits

Forms of payment of an annuity that are more valuable than the normal form of payment. For example, if the participant is entitled to a $1,000 life annuity, he or she can also elect a $1,000-a-month 50 percent joint and survivor annuity.