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FORM N-4, ITEM 24(b)(4.32)
Form of AMENDMENT TO THE TDA GROUP ANNUITY CONTRACT
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AMENDMENT
TO THE
TDA GROUP ANNUITY CONTRACT
NUMBER G[insert Contract number here]
(THE CONTRACT)
ISSUED BY AMERICAN UNITED LIFE INSURANCE COMPANY (AUL)
TO
[insert Contractholder here]
(THE CONTRACTHOLDER)
This Amendment is effective as of January 1, 2009.
The Contract is hereby amended by adding the following provisions and by
deleting any corresponding Contract provision to the contrary:
1. [Loans: If this contract provides for loans whereby a Participant who has a
fixed interest account balance may take a loan from AUL as the lender,
using that fixed interest account balance as the only security for the
loan, new loans of this type shall no longer be available on and after
January 1, 2009. However, loans are permitted under this contract as
withdrawals from the Participant's Account to the extent that AUL and the
Plan Sponsor so agree and the Plan Sponsor makes provision in its Plan for
the availability of Plan loans satisfying the requirements of Code section
72(p), and, where applicable, ERISA section 408(b)(1), whereby the Plan
(rather than AUL) is the lender and the loan proceeds are withdrawn by the
Plan Sponsor directly from the borrowing Participant's Account and then
loaned by the Plan to the Participant. Additionally, hardship withdrawals
and withdrawals upon attainment of age 59 1/2 from the Participant's
Account are permitted under this contract to the extent that the Plan
Sponsor makes provision in its Plan for such Participant benefits and the
Plan Administrator provides information necessary for AUL to provide such a
withdrawal.]
2. Contributions and Transfers: Code section 403(b) "Contributions" are
amounts that have been paid to AUL and allocated to this contract, or that
have been transferred to this contract from a prior AUL group annuity
contract or a prior funding medium, pursuant to a Plan established by the
Plan Sponsor that meets the requirements of Code section 403(b). Such
transferred funds may be listed under categories other than "Contributions"
on contract reports. [Code section 403(b) Contributions may not exceed
applicable Code sections 402(g), 403(b), 414(v), and 415 limits. The term
"Contributions" does not include amounts that were the subject of an
eligible rollover distribution from another plan to the Plan.]
3. Excess Contributions: "Excess Contributions" are Contributions in excess of
the applicable Internal Revenue Code limits. The Plan Sponsor is
responsible for tracking Excess Contributions. [Code section 403(b)
Contributions that exceed the applicable Code section 415 limits, and that
the Plan Sponsor identifies to AUL, will be accounted for separately within
this contract.]
4. Plan: A Code section 403(b) "Plan" means a plan of the Plan Sponsor that is
qualified under Code section 403(b) for which Contributions are made to
this contract.
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5. [section 402(g) Limit: No Participant is permitted to have elective
deferral contributions (within the meaning of Code section 402(g)(3)) made
during a calendar year under this contract, or under any other plans,
contracts, or arrangements maintained by his or her employer, in excess of
the dollar limitation in effect under Code section 402(g)(1) and any
Regulations issued thereunder for taxable years beginning in such calendar
year.]
6. [Nonforfeitability and Nontransferability: The Participant's entire
Withdrawal Value (or "Cash Value" or other equivalent term, if that term is
used in this contract) of the vested portion (as determined pursuant to the
Code section 403(b) Plan) of Code section 403(b) funds of a Participant is
nonforfeitable at all times within the meaning of Code section 403(b)(1)(C)
and any Regulations issued thereunder. This contract shall also be
nontransferable within the meaning of Treasury Regulation
section1.403(b)3(a)(5). No sum payable under this contract that is
attributable to Code section403(b) funds with respect to a Participant may
be sold, assigned, discounted, or pledged as collateral for a loan or as
security for the performance of an obligation or for any other purpose to
any person or entity other than us, other than pursuant to a qualified
domestic relations order described in Code section 414(p). In addition, to
the extent permitted by law, no such sum shall in any way be subject to
legal process requiring the payment of any claim against the payee.]
7. [Rollovers : A distributee may elect to have any portion of an eligible
rollover distribution paid directly to an eligible retirement plan specified by
the distributee in a direct rollover. For this purpose, the following
definitions and rules apply:
(a) Eligible rollover distribution: An eligible rollover distribution is
any distribution of all or any portion of the balance to the credit of
the distributee, except that an eligible rollover distribution does
not include: any distribution that is one of a series of substantially
equal periodic payments (not less frequently than annually) made for
the life (or life expectancy) of the distributee or the joint lives
(or joint life expectancies) of the distributee and the distributee's
designated beneficiary, or for a specified period of ten years or
more; any distribution to the extent such distribution is required
under Code section 401(a)(9) as made applicable by Code section
403(b)(10); any distribution made upon the hardship of the employee;
and any other amounts designated in applicable federal tax guidance.
The term "eligible rollover distribution" shall not include the
portion of any distribution that is not includible in gross income
except to the extent that such amount is paid directly to an eligible
retirement plan that is anindividual retirement account described in
Code section 408(a), an individual retirement annuity described in
Code section408(b), or an annuity described in Code section 403(b) or
qualified trust described in Code section 401(a) and such annuity or
trust agrees to separately account for such amounts so transferred,
including separately accounting for the portion of such distribution
that is includible in gross income and the portion that is not so
includible.
(b) Eligible Retirement Plan: An eligible retirement plan is an individual
retirement account described in Code section 408(a), an individual
retirement annuity described in Code section 408(b), an annuity plan
described in Code sections 403(a) or 403(b), a qualified trust
described in Code section 401(a), or an eligible deferred compensation
plan described in Code section 457(b) which is maintained
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by an eligible governmental employer described in Code section
457(e)(1)(A), that accepts the distributee's eligible rollover
distribution.
(c) Distributee: The Participant is a distributee whether an employee or
former employee. In addition, a Participant's spouse or former spouse
who is the alternate payee under a qualified domestic relations order,
as defined in Code section 414(p), is a distributee with regard to the
interest of the spouse or former spouse.
(d) Nonspouse Beneficiary: To the extent permitted by Code section
402(c)(11) and applicable federal tax guidance thereunder, a direct
trustee-to-trustee transfer may be made to an individual retirement
account described in Code section 408(a) or an individual retirement
annuity described in Code section 408(b) of an individual who is the
Participant's designated beneficiary but who is not the Participant's
surviving spouse if such transfer would be an eligible rollover
distribution but for the fact that the distribution is not being made
to the Participant or the Participant's surviving spouse.
(e) Direct Rollover: A direct rollover is a payment by the Plan to the
eligible retirement plan specified by the distributee.]
8. [Limitations on Distributions:
(a) Elective Deferrals: Amounts attributable to Code section 403(b)
elective deferral Contributions made pursuant to a Code section
402(g)(3)(C) salary reduction agreement may be distributed to a
Participant pursuant to the provisions of the Plan, provided that such
distribution shall not occur until the Participant has either attained
age 59 1/2, severed employment, died, become totally disabled (as
defined by Code section 72(m)(7), subject to any limitations provided
under the Plan), experienced a hardship (as defined by Code section
403(b)(11)(B), subject to any limitations provided under the Plan), or
a withdrawal is made to provide a Plan loan in accordance with Code
section 72(p). In the case of a hardship withdrawal, any gain credited
to such Contributions may not be withdrawn. These timing restrictions
do not apply to Contributions (but do apply to earnings thereon) that
were contributed before 1989, to withdrawals to correct Excess
Contributions in accordance with the Code or other applicable
Regulations or guidance, or to distributions due to Plan termination
in accordance with the Code or other applicable Regulations or
guidance.
(b) Nonelective Deferrals: For contracts issued after 2008, any
distribution of Code section 403(b) Contributions other than elective
deferrals described Section 8(a) above shall not occur until the
Participant has seveemployment or upon the prior occurrence of an
event specified in the Plaand permissible under Treasury Regulation
section 1.403(b)-6(b), such as the attainment of a stated age, after a
fixed number of years of service, disability. This restriction does
not apply to withdrawals to correct Excess Contributions,
distributions of after-tax employee Contributions anearnings thereon,
and distributions due to Plan termination in accordancewith the Code
or other applicable Regulations or guidance.]
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9. [Distributions on Plan Termination: With regard to amounts
attributable to Code section 403(b) Contributions made pursuant to a
Code section 402(g)(3)(C) salary reduction agreement, termination of
the Code section 403(b) Plan and distribution of such accumulated
amounts pursuant to the provisions of the Plan are permitted only if
the Plan Sponsor (taking into account all entities that are treated as
the same employer under Code section 414(b), (c), (m), or (o) on the
date of the termination) does not make contributions to any Code
section 403(b) contract that is not part of the Plan during the period
beginning on the date of Plan termination and ending 12 months after
distribution of all assets from the terminated Plan. However, if at
all times during the period beginning 12 months before the termination
and ending 12 months after distribution of all assets from the
terminated Plan, fewer than 2% of the employees who were eligible
under the Code section 403(b) Plan as of the date of Plan termination
are eligible under the alternative Code section 403 contract is
disregarded.]
10. [Required Minimum Distributions: This contract shall comply with the
minimum distribution provisions of the Plan, but in no event shall the
contract fail to comply with the requirements of Code section
401(a)(9) and the regulations issued thereunder, including, but not
limited to, the incidental benefit requirements specified in Code
section 401(a)(9)(G) and Q&A-2 of section 1.401(a)(9)-6, as made
applicable by Code section 403(b)(10). For purposes of applying the
distribution rules of Code section 401(a)(9), distributions shall be
made in accordance with the provisions of section 1.408-8 of the
Treasury Regulations, except as provided in section 1.403(b)-6(e) of
the Treasury Regulations. Accordingly, the provisions of (a), (b), and
(c) below shall apply:
(a) Code section 403(b) Required Minimum Distributions Prior to the
Participant's Death:
(1) Notwithstanding any provision of this contract to the contrary, the
distribution of a Participant's post-1986 Code section 403(b) interest
in the contract (amounts accruing after 1986, including post-1986
earnings on pre-1987 accrued amounts) will be made in accordance with
the requirements of Code sections 403(b)(10) and 401(a)(9) and the
Regulations issued thereunder. If distributions are not made in the
form of an annuity on an irrevocable basis (except for acceleration),
then distribution of a Participant's post-1986 Code section 403(b)
interest in the contract (as determined under (b)(3) below) must
satisfy the requirements of Code sections 403(b)(10) and 401(a)(9) and
the regulations issued thereunder as applicable to an account, rather
than the requirements of (a)(2), (3), and (4) below and (b) below
applicable to an annuity.
(2) The Participant's entire post-1986 Code section 403(b) interest will
begin to be distributed no later than the first day of April following
the later of the calendar year in which the Participant attains age 70
1/2 or the calendar year in which the Participant retires from
employment with the employer maintaining the Plan (the "required
beginning date") over (a) the life of the Participant or the lives of
the Participant and his or her designated beneficiary or (b) a period
certain not extending beyond the life expectancy of the Participant or
the joint and last survivor expectancy of the Participant and his
TDA07finalreg 4
of her designated beneficiary. However, if this contract is not part
of a governmental plan or church plan, the "required beginning date"
for a 5% owner is the first day of April of the calendar year
following the calendar year in which the Participant attains age 70
1/2. Payments will be made in periodic payments at intervals of no
longer than 1 year, and must be either nonincreasing or they may
increase only as provided in Q&As-1 and -4 of section 1.401(a)(9)-6 of
the Treasury Regulations. In addition, any distribution of Code
section 403(b) amounts accruing pre-1987 or post-1986 must satisfy the
incidental benefit requirements specified in Code section 401(a)(9)(G)
and Q&A-2 of Treasury Regulation section 1.401(a)(9)-6.
(3) The distribution periods described in (a)(2) above cannot exceed the
periods specified in Treasury Regulation section 1.401(a)(9)-6.
(4) The first required payment can be made as late as the "required
beginning date," and must be the payment that is required for one
payment interval. The second payment need not be made until the end of
the next payment interval.
(b) Code section 403(b) Required Minimum Distributions After the Participant's
Death:
(1) If the Participant dies before his Annuity Commencement Date,
hisentire post-1986 Code section 403(b) interest (as defined in
10(a)(1) above) will be distributed at least as rapidly as follows:
(A) in a single sum or other method not provided in (B) below;
provided, however, that the entire interest must be paid
onor before December 31 of the calendar year which contains
the fifth anniversary of the Participant's death, or
(B) as an annuity in accordance with the Annuity Options shown
in the contract over a period not to exceed the life or life
expectancy of the Participant's beneficiary.
(i) If the designated beneficiary is not the Participant's
surviving spouse, the entire interest will be
distributed, beginning no later than December 31 of the
calendar year following the calendar year inwhich the
Participant died, over the remaining life expectancy of
such designated beneficiary. Such lifeexpectancy is
determined using the age of the beneficiary as of his
or her birthday in the year following the year of the
Participant's death or, if elected, in accordance with
(b)(1)(B)(iii) below.
(ii) If the sole designated beneficiary is the Participant's
surviving spouse, the entire interest will be
distributed, beginning no later than December 31 of the
calendar year following the calendar year in
TDA07finalreg 5
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), over such spouse's life, or, if
elected, in accordance with (b)(1)(B)(iii) below. If the
surviving spouse dies before required distributions commence
to him or her, the remaining interest will be distributed,
beginning on or before December 31 of the calendar year
immediately following the calendar year in which the spouse
died, over the spouse's designated beneficiary's remaining
life expectancy determined using such beneficiary's age as
of his or her birthday in the year following the death of
the spouse, or, if elected, will be distributed in
accordance with (b)(1)(B)(iii) below. If the surviving
spouse dies after required distributions commence to him or
her, any remaining interest will continue to be distributed
under the payment option chosen.
(iii) If there is no designated beneficiary, the designated
beneficiary is not an individual, or if applicable by
operation of (b)(1)(B)(i) or (ii) above, the entire
interest will be distributed no later than December 31
of the calendar year containing the fifth anniversary
of the Participant's death (or of the spouse's death in
the case of the surviving spouse's death before
distributions are required to begin under (b)(1)(B)(ii)
above).
(iv) Life expectancy is determined using the Single Life
Table in Q&A-1 of Treasury Regulation section
1.401(a)(9)9. If distributions are being made to a
surviving spouse as the sole designated beneficiary,
such spouse's remaining life expectancy for a year is
the number in the Single Life Table corresponding to
such spouse's age in the year. In all other cases,
remaining life expectancy for a year is the number in
the Single Life Table corresponding to the
beneficiary's age in the year specified in (b)(1)(B)(i)
or (ii) above and reduced by 1 for each subsequent
year.
(2) If the Participant dies on or after his or her Annuity Commencement
Date, any interest remaining under the benefit payment option selected
will continue to be distributed under that benefit payment option and
will be paid at least as rapidly as prior to the Participant's death.
(3) The Participant's "interest" includes the amount of any outstanding
rollover or transfer and the actuarial value of any other benefits
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provided under the contract, such as guaranteed death benefits, if any.
(4) For purposes of (b)(1) and (2) above, required distributions are
considered to commence on the Participant's required beginning date
or, if applicable, on the date distributions are required to begin to
the surviving spouse under (b)(1)(B)(ii) above. However, if
distributions start prior to the applicable date in the preceding
sentence, on an irrevocable basis (except for acceleration) under an
annuity contract meeting the requirements of Treasury Regulation
section 1.401(a)(9)-6, then required distributions are considered to
commence on the annuity starting date.
(c) Application to Multiple Contracts: To the extent permitted by Treasury
Regulation section 1.403(b)-6(e)(7), the required minimum distribution from
one Code section 403(b) contract of a Participant may be distributed from
another Code section 403(b) contract in order to satisfy Code section
401(a)(9). The Participantshall in such event be responsible for the
satisfaction of Code section 401(a)(9).]
AUL
By
/s/ Xxxxxx X. Xxxxxxxxx
[President & Chief Executive Officer]
Attest
/s/ Xxxxxx X. Xxxxx
[Secretary]
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