1. (a) Required Distribution: In accordance with Section 401(a)(9) of the Internal Revenue Code, a member must (1) withdraw all accumulated contributions credited to that member's individual account pursuant to Section 842.108 of the Government Code or (2) retire and begin receiving a benefit from TCDRS on or before the member's required distribution date.

   1. (1) Required distribution date means April 1 of the calendar year following the later of the calendar year in which the member attains the required distribution age, or the calendar year in which the member terminates employment with all Covered Employers. Required distribution age is the applicable age as prescribed by federal law under Section 401(a)(9)(C) of the Internal Revenue Code, and as amended from time to time.
   2. (2) Covered Employer for purposes of this Subsection includes all TCDRS participating Employers and all employers that participate with the public retirement systems included in the proportionate retirement program under Chapter 803 of the Government Code.

2. (b) General Rules:

   1. (1) The remaining interest of a deceased retiree's benefit must continue to be distributed as rapidly as the method of distribution being used before the retiree's death.
   2. (2) The entire interest that becomes payable because of the death of a member who has a designated beneficiary as defined in regulations to Section 401(a)(9) of the Internal Revenue Code must be distributed over the life of the designated beneficiary or over a period not extending beyond the life expectancy of the designated beneficiary. Distributions shall begin no later than the applicable date specified in Section 401(a)(9) of the Internal Revenue Code.
   3. (3) The entire interest that becomes payable because of the death of a member who does not have a designated beneficiary must be distributed within five years of the death of the member.
   4. (4) For a distribution made by TCDRS to which Section 401(a)(9) of the Internal Revenue Code applies, TCDRS shall apply the minimum distribution requirements of Section 401(a)(9) of the Internal Revenue Code in a manner that complies with a reasonable good faith interpretation of Section 401(a)(9) of the Internal Revenue Code.

Source Note:The provisions of this §103.5 adopted to be effective December 31, 1997, 22 TexReg 12538; amended to be effective December 31, 2002, 27 TexReg 12371; amended to be effective October 18, 2007, 32 TexReg 7265; amended to be effective July 21, 2009, 34 TexReg 4739; amended to be effective January 8, 2026, 51 TexReg 158.