MMC Benefits Handbook
How the Benefit Is Paid
If your account balance is $1,000 (includes your Roth 401(k) balance) or less, your account balance will be distributed to your Beneficiary automatically, and applicable taxes will be withheld.
If your account balance is more than $1,000 (includes your Roth 401(k) balance), your beneficiary may request a distribution or leave the account in the Plan. The maximum period over which your beneficiary may defer depends on whether or not your beneficiary is your surviving spouse.
If your beneficiary is your surviving spouse, he or she may:
  • elect a lump sum distribution, which he or she may direct as a rollover into his or her own traditional IRA, Roth IRA or employer's tax-qualified plan, at any time up until April 1st following the calendar year in which you (not your spousal beneficiary) would have attained age 70-1/2.
  • elect Installment distributions over a period of years not to exceed your spouse's life expectancy, beginning no later than April 1st following the calendar year in which you (not your spousal beneficiary) would have attained age 70-1/2.
  • elect a lump sum distribution, which he or she may direct as a rollover into his or her own traditional IRA, Roth IRA or employer's tax-qualified plan, on a percentage of the account balance and installment distributions on the remainder, subject to the time frames above.
If your beneficiary is not your surviving spouse, he or she may:
  • elect a lump sum distribution, which he or she may direct as a rollover into a traditional IRA or Roth IRA at any time within five years of your death, or
  • elect an installment distributions, beginning no later than 11 months after the election has been filed, and ending within five years of your death.
If you were already receiving installments before your death, those installment payments will be paid to your beneficiary, although the Plan Administrator may allow your beneficiary to elect a lump sum distribution.
If your beneficiary does not request an immediate distribution of your account, the account balance will continue to be affected by the investment performance of the investment options elected for the account.
While your account remains in the Plan, your beneficiary can:
  • reallocate the balance of your account among different investment options.
  • substitute one investment option for another (a "fund-to-fund" transfer).
  • request a distribution.
  • change dividend election.
As long as your beneficiary maintains a balance in the Plan, your beneficiary will need to call the Employee Service Center at +1 866 374 2662 to report any address changes so the account statements are properly directed.