eTrade 2008 Annual Report Download - page 231

C. If the Participant’s surviving spouse is not the Participant’s sole Designated Beneficiary, the Designated
Beneficiary’s remaining Life Expectancy is calculated using the age of the Beneficiary in the year
following the year of the Participan
t
’s death, reduced by one for each subsequent year.
(ii) No Designated Beneficiary. If the Participant dies on or after the date distributions begin and there is no
Designated Beneficiary as of September 30 of the year after the year of the Participant’s death, the minimum
amount that will be distributed for each Distribution Calendar Year after the year of the Participant’s death is
the quotient obtained by dividing the Participant’s Account Balance by the Participant’s remaining Life
Expectancy calculated using the age of the Participant in the year of death, reduced by one for each subsequent
year.
(2) Death Before Date Distributions Begin.
(i) Participant Survived by Designated Beneficiary. If the Participant dies before the date distributions begin and
there is a Designated Beneficiary, the minimum amount that will be distributed for each Distribution Calendar
Year after the year of the Participant’s death is the quotient obtained by dividing the Participant’s Account
Balance by the remaining Life Expectancy of the Participant’s Designated Beneficiary, determined as provided
in (d)(1) above, 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) No Designated Beneficiary. If the Participant dies before the date distributions begin and there is no
Designated Beneficiary as of September 30 of the year following the year of the Participant’s death,
distribution of the Participant’s entire interest will be completed by December 31 of the calendar year
containing the fifth anniversary of the Participant’s death.
(iii) Death of Surviving Spouse Before Distributions to Surviving Spouse Are Required to Begin. If the Participant
dies before the date distributions begin, the Participant’s surviving spouse is the Participant’s sole Designated
Beneficiary, and the surviving spouse dies before distributions are required to begin to the surviving spouse
under (b)(2)(i) above, this (d)(2) will apply as if the surviving spouse were the Participant.
RESTATEMENT DECEMBER 15, 2006
64 ARTICLE VII (5-19047)