AMENDMENT TO THE KANSAS CITY SOUTHERN 401(k) AND PROFIT SHARING PLAN (As Amended and Restated Effective April 1, 2002)
Exhibit 10.10.4
AMENDMENT
TO THE
KANSAS CITY SOUTHERN
401(k) AND PROFIT SHARING PLAN
(As Amended and Restated Effective April 1, 2002)
The Kansas City Southern 401(k) and Profit Sharing Plan, as amended and restated effective April 1, 2002, (the Plan), and as subsequently amended, is hereby further amended by adding the following Article VI-A to the Plan in order to comply with the Final and Temporary Regulations under Code Section 401(a)(9) as required by Internal Revenue Service Revenue Procedure 2002-29.
ARTICLE VI-A.
MINIMUM DISTRIBUTION REQUIREMENTS
6A.1 GENERAL RULES.
(a) Effective Date. The provisions of this Article VI-A apply to the determination of required minimum distributions made in calendar years beginning on and after January 1, 2003.
(b) Precedence. The requirements of this Article will take precedence over any inconsistent provisions of the Plan; provided, however, this Article shall not be construed to permit distribution commencing later or over a time period longer than otherwise permitted under the Plan.
(c) Treasury Regulations Incorporated. All distributions required under this Article will be determined and made in accordance with the Treasury Regulations under Code Section 401(a)(9).
(d) TEFRA Section 242(b)(2) Elections. Notwithstanding the other provisions of this Article VI-A, distributions may be made under a designation made before January 1, 1984, in accordance with Section 242(b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA) and the provisions of the Plan that relate to Section 242(b)(2) of TEFRA.
6A.2 TIME AND MANNER OF DISTRIBUTION.
(a) Required Beginning Date. The Participants Nonforfeitable Accrued Benefit will be distributed, or begin to be distributed, to the Participant no later than the Participants Required Beginning Date.
(b) Death of Participant Before Distributions Begin. If the Participant dies before distributions begin, the Participants Nonforfeitable Accrued Benefit will be distributed, or begin to be distributed, no later than as follows:
(1) If the Participants surviving spouse is the Participants sole designated Beneficiary, then distributions to the 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.
(2) If the Participants surviving spouse is not the Participants sole designated Beneficiary, then either distributions to the designated Beneficiary will begin by December 31 of the calendar year immediately following the calendar year in which the Participant died or the Participants entire Nonforfeitable Accrued Benefit will be distributed to the designated Beneficiary by December 31 of the calendar year containing the fifth anniversary of the Participants death.
(3) If there is no designated Beneficiary as of September 30 of the year following the year of the Participants death, the Participants entire Nonforfeitable Accrued Benefit will be distributed by December 31 of the calendar year containing the fifth anniversary of the Participants death.
(4) If the Participants surviving spouse is the Participants sole designated Beneficiary and the spouse dies after the Participant but before distributions to the spouse begin, this Section 6A.2(b), other than Section 6A.2(b)(1), will apply as if the spouse were the Participant.
For purposes of this Section 6A.2(b), and Section 6A.4, unless Section 6A.2(b)(4) applies, distributions are considered to begin on the Participants Required Beginning Date. If Section 6A.2(b)(4) applies, distributions are considered to begin on the date distributions are required to begin to the spouse under Section 6A.2(b)(1).
(c) Forms of Distribution. Unless the Participants Nonforfeitable Accrued Benefit is distributed 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 Sections 6A.3 and 6A.4.
6A.3 REQUIRED MINIMUM DISTRIBUTIONS DURING PARTICIPANTS LIFETIME.
(a) Amount of Required Minimum Distribution For Each Distribution Calendar Year. During the Participants lifetime, the minimum amount that will be distributed for each distribution calendar year is the lesser of
(1) the quotient obtained by dividing the Participants account balance by the distribution period in the Uniform Lifetime Table set forth in Section 1.401(a)(9)-9 of the Treasury Regulations, using the Participants age as of the Participants birthday in the distribution calendar year; or
(2) If the Participants sole designated beneficiary for the distribution calendar year is the Participants spouse, the quotient obtained by dividing the Participants account balance by the number in the Joint and Last Survivor Table set forth in Section 1.401(a)(9)-9 of the Treasury Regulations, using the Participants and spouses attained ages as of the Participants and spouses birthdays in the distribution calendar year.
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(b) Lifetime Required Minimum Distributions Continue Through Year of Participants Death. Required minimum distributions will be determined under this Section 6A.3 beginning with the first distribution calendar year and up to and including the distribution calendar year that includes the Participants date of death.
6A.4 REQUIRED MINIMUM DISTRIBUTIONS AFTER PARTICIPANTS DEATH.
(a) Death On or After Date Distributions Begin.
(1) Participant Survived by Designated Beneficiary. If the Participant dies on or after 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 Participants death is the quotient obtained by dividing the Participants account balance by the longer of the remaining life expectancy of the Participant or the remaining life expectancy of the Participants designated Beneficiary, determined as follows:
A. The Participants remaining life expectancy is calculated using the age of the Participant in the year of death, reduced by one for each subsequent year.
B. If the Participants spouse is the Participants sole designated Beneficiary, the remaining life expectancy of the spouse is calculated for each distribution calendar year after the year of the Participants death using the spouses age as of the spouses birthday in that year. For distribution calendar years after the year of the spouses death, the remaining life expectancy of the spouse is calculated using the age of the spouse as of the spouses birthday in the calendar year of the spouses death, reduced by one for each subsequent calendar year.
C. If the Participants spouse is not the Participants sole designated beneficiary, the designated beneficiarys remaining life expectancy is calculated using the age of the beneficiary in the year following the year of the Participants death, reduced by one for each subsequent year.
(2) 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 Participants death, the minimum amount that will be distributed for each distribution calendar year after the year of the Participants death is the quotient obtained by dividing the Participants account balance by the Participants remaining life expectancy calculated using the age of the Participant in the year of death, reduced by one for each subsequent year.
(b) Death Before Date Distributions Begin.
(1) 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 Participants death is the quotient obtained by dividing the Participants account balance by the remaining life expectancy of the Participants
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designated Beneficiary, determined as provided in Section 6A.4, unless the Participants entire interest is distributed to the designated Beneficiary by December 31 of the calendar year containing the fifth anniversary of the Participants death.
(2) 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 Participants death, distribution of the Participants entire interest will be completed by December 31 of the calendar year containing the fifth anniversary of the Participants death.
(3) Death of Spouse Before Distributions to Spouse Are Required to Begin. If the Participant dies before the date distributions begin, the Participants spouse is the Participants sole designated Beneficiary, and the spouse dies before distributions are required to begin to the spouse under Section 6A.2, this Section 6A.4(b) will apply as if the spouse were the Participant.
6A.5 DEFINITIONS.
(a) Designated Beneficiary. The designated Beneficiary under the provisions of the Plan who is also the designated beneficiary under Code Section 401(a)(9) and Section 1.401(a)(9)-l, Q&A-4, of the Treasury Regulations.
(b) Distribution calendar year. A calendar year for which a minimum distribution is required. For distributions beginning before the Participants death, the first distribution calendar year is the calendar year immediately preceding the calendar year which contains the Participants Required Beginning date. For distributions beginning after the Participants death, the first distribution calendar year is the calendar year in which distributions are required to begin under Section 6A.2(b). The required minimum distribution for the Participants first distribution calendar year will be made on or before the Participants Required Beginning Date. The required minimum distribution for other distribution calendar years, including the required minimum distribution for the distribution calendar year in which the Participants Required Beginning Date occurs, will be made on or before December 31 of that distribution calendar year.
(c) Life expectancy. Life expectancy as computed by use of the Single Life Table in Section 1.401(a)(9)-9 of the Treasury Regulations.
(d) Participants account balance. The vested balance of the Participants Accounts as of the last valuation date in the calendar year immediately preceding the distribution calendar year (valuation calendar year) increased by the amount of any vested contributions made and allocated or vested forfeitures allocated to the account balance as of dates in the valuation calendar year after the valuation date and decreased by distributions made in the valuation calendar year after the valuation date. The account balance for the valuation calendar year includes any amounts rolled over or transferred to the Plan either in the valuation calendar year or in the distribution calendar year if distributed or transferred in the valuation calendar year.
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(e) Required Beginning Date. The Required Beginning Date as defined in Section 6.01(B).
IN WITNESS WHEREOF, Kansas City Southern has executed this Amendment.
Dated: December 3, 2003
KANSAS CITY SOUTHERN | ||
By: | /s/ Eric B. Freestone |