eTrade 2008 Annual Report Download - page 229

For purposes of this (b)(2) and (d) below, unless (b)(2)(iv) above applies, distributions are considered to begin on
the Participant’s Required Beginning Date. If (b)(2)(iv) above applies, distributions are considered to begin on the
date distributions are required to begin to the surviving spouse under (b)(2)(i) above. If distributions under an
annuity purchased from an insurance company irrevocably commence to the Participant before the Participant’s
Required Beginning Date (or to the Participant’s surviving spouse before the date distributions are required to begin
to the surviving spouse under (b)(2)(i) above), the date distributions are considered to begin is the date distributions
actually commence.
(2) Death of Participant Before Distributions Begin. If the Participant dies before distributions begin, the Participant’s
entire interest will be distributed, or begin to be distributed, no later than as follows:
(i) If the Participant’s surviving spouse is the Participant’s sole Designated Beneficiary, distributions to the
surviving spouse will begin by December 31 of the calendar year immediately following the calendar year in
which the Participant died, or by December 31 of the calendar year in which the Participant would have
attained age 70 1/2, if later, except to the extent that an election is made to receive distributions in accordance
with the 5-year rule. Under the 5-year rule, the Participant’s entire interest will be distributed to the Designated
Beneficiary by December 31 of the calendar year containing the fifth anniversary of the Participant’s death.
(ii) If the Participant’s surviving spouse is not the Participant’s sole Designated Beneficiary, distributions to the
Designated Beneficiary will begin by December 31 of the calendar year immediately following the calendar
year in which the Participant died, except to the extent that an election is made to receive distributions in
accordance with the 5-year rule. Under the 5-year rule, the Participant’s entire interest will be distributed to the
Designated Beneficiary by December 31 of the calendar year containing the fifth anniversary of the
Participant’s death.
(iii) If there is no Designated Beneficiary as of September 30 of the year following the year of the Participant’s
death, the Participant’s entire interest will be distributed by December 31 of the calendar year containing the
fifth anniversary of the Participan
t
’s death.
(iv) If the Participant’s surviving spouse is the Participant’s sole Designated Beneficiary and the surviving spouse
dies after the Participant but before distributions to the surviving spouse are required to begin, this (b)(2), other
than (b)(2)(i), will apply as if the surviving spouse were the Participant.
(3) Forms of Distribution. Unless the Participant’s interest is distributed in the form of an annuity purchased from an
insurance company or in a single sum on or before the Required Beginning Date, as of the first Distribution
Calendar Year distributions will be made in accordance with (c) and (d) below. If the Participant’s interest is
distributed in the form of an annuity purchased from an insurance company, distributions thereunder will be made in
accordance with the requirements of Code Section 401(a)(9) and the regulations thereunder.
RESTATEMENT DECEMBER 15, 2006
62 ARTICLE VII (5-19047)