Common use of Beneficiary Rights Clause in Contracts

Beneficiary Rights. If the Xxxx XXX Owner dies before his or her entire interest is distributed to him or her, the entire remaining interest will be distributed as follows. A. Notwithstanding any provision of this Xxxx XXX to the contrary, the distribution of the Xxxx XXX Owner’s interest in the account shall be made in accordance with the requirements of Code Section 408(a)(6), as modified by Code Section 408A(c)(5), and the Regulations thereunder, the provisions of which are herein incorporated by reference. If distributions are made from an annuity contract purchased from an insurance company, distributions thereunder must satisfy the requirements of Regulations Section 1.401(a)(9)-6 (taking into account Code Section 408A(c)(5)), rather than the distribution rules in Section 4.03(B), (C), and (D) of this Agreement. B. Upon the death of the Xxxx XXX Owner, his or her entire interest will be distributed at least as rapidly as follows. 1. If the Designated Beneficiary is someone other than the Xxxx XXX Owner’s surviving spouse, the entire interest will be distributed, starting by the end of the calendar year following the calendar year of the Xxxx XXX Owner’s death, over the remaining life expectancy of the Designated Beneficiary, with such life expectancy determined using the age of the Beneficiary as of his or her birthday in the year following the year of the Xxxx XXX Owner’s death, or, if elected, in accordance with Section 4.03(B)(3) of this Agreement. If this is an inherited Xxxx XXX within the meaning of Code Section 408(d)(3)(C) established for the benefit of a nonspouse Designated Beneficiary by a direct trustee-to-trustee transfer from a retirement plan of a deceased individual under Code Section 402(c)(11), then, notwithstanding any election made by the deceased individual pursuant to the preceding sentence, the nonspouse Designated Beneficiary may elect to have distributions made under Section 4.03(B)(1) of this Agreement if the transfer is made no later than the end of the year following the year of death. 2. If the Xxxx XXX Owner’s sole Designated Beneficiary is his or her surviving spouse, the entire interest will be distributed, starting by the end of the calendar year following the calendar year of the Xxxx XXX Owner’s death (or by the end of the calendar year in which the Xxxx XXX Owner would have attained age 70½, if later), over such spouse’s life expectancy, or, if elected, in accordance with Section 4.03(B)(3) of this Agreement. If the surviving spouse dies before distributions are required to begin, the remaining interest will be distributed, starting by the end of the calendar year following the calendar year of the spouse’s death, 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 Section 4.03(B)(3) of this Agreement. If the surviving spouse dies after distributions are required to begin, any remaining interest will be distributed over the spouse’s remaining life expectancy determined using the spouse’s age as of his or her birthday in the year of the spouse’s death. 3. If there is no Designated Beneficiary, or if applicable by operation of Section 4.03(B)(1) or (B)(2) of this Agreement, the entire interest will be distributed by the end of the calendar year containing the fifth anniversary of the Xxxx XXX Owner’s death (or of the spouse’s death in the case of the surviving spouse’s death before distributions are required to begin under Section 4.03(B)(2) of this Agreement). 4. The amount to be distributed each year under Section 4.03(B)(1) or (2) of this Agreement is the quotient obtained by dividing the value of the Xxxx XXX as of the end of the preceding year by the remaining life expectancy specified in Section 4.03 of this Agreement. Life expectancy is determined using the Single Life Table in Q&A-1 of Regulations 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 Section 4.03(B)(1) or (B)(2) of this Agreement and reduced by one for each subsequent year. C. The value of the Xxxx XXX for purposes of this Section is the prior December 31 balance adjusted to include the amount of any outstanding rollovers, transfers and recharacterizations under Q&As-7 and -8 of Regulations Section 1.408-8. D. If the Designated Beneficiary is the Xxxx XXX Owner’s surviving spouse, the spouse may elect to treat the IRA as his or her own Xxxx XXX. This election will be deemed to have been made if such surviving spouse, who is the sole Beneficiary of the Xxxx XXX, makes a contribution to the Xxxx XXX or fails to take required distributions as a Beneficiary. E. The required minimum distributions payable to a Designated Beneficiary from this Xxxx XXX may be withdrawn from another IRA the Beneficiary holds from the same decedent in accordance with Q&A-9 of Regulations Section 1.408-8. F. If the Beneficiary fails to request a distribution by December 31 of the year following the year the Xxxx XXX Owner dies, the Custodian reserves the right to elect, in its complete and sole discretion, to do any one of the following: • make no distribution until the Beneficiary(ies) provides the Custodian a proper withdrawal request; • distribute the entire Xxxx XXX to the Beneficiary(ies) in a single sum payment; or • distribute the entire remaining interest to the Beneficiary(ies) pursuant to the applicable option in Section 4.03(B) of this Agreement. The Custodian will not be liable for any penalties or taxes related to the Beneficiary’s (ies’) failure to take a required minimum distribution.

Beneficiary Rights. If the Xxxx XXX Owner dies before his or her entire interest is distributed to him or her, the entire remaining interest will be distributed as follows. A. Notwithstanding any provision of this Xxxx XXX to the contrary, the distribution of the Xxxx XXX Owner’s interest in the account shall be made in accordance with the requirements of Code Section 408(a)(6), as modified by Code Section 408A(c)(5), and the Regulations thereunder, the provisions of which are herein incorporated by reference. If distributions are made from an annuity contract purchased from an insurance company, distributions thereunder must satisfy the requirements of Regulations Section 1.401(a)(9)-6 (taking into account Code Section 408A(c)(5)), rather than the distribution rules in Section 4.03(B), (C), and (D) of this Agreement. B. Upon the death of the Xxxx XXX Owner, his or her entire interest will be distributed at least as rapidly as follows. 1. If the Designated Beneficiary is someone other than the Xxxx XXX Owner’s surviving spouse, the entire interest will be distributed, starting by the end of the calendar year following the calendar year of the Xxxx XXX Owner’s death, over the remaining life expectancy of the Designated Beneficiary, with such life expectancy determined using the age of the Beneficiary as of his or her birthday in the year following the year of the Xxxx XXX Owner’s death, or, if elected, in accordance with Section 4.03(B)(3) of this Agreement. If this is an inherited Xxxx XXX within the meaning of Code Section 408(d)(3)(C) established for the benefit of a nonspouse Designated Beneficiary by a direct trustee-to-to- trustee transfer from a retirement plan of a deceased individual under Code Section 402(c)(11), then, notwithstanding any election made by the deceased individual pursuant to the preceding sentence, the nonspouse Designated Beneficiary may elect to have distributions made under Section 4.03(B)(1) of this Agreement if the transfer is made no later than the end of the year following the year of death. 2. If the Xxxx XXX Owner’s sole Designated Beneficiary is his or her surviving spouse, the entire interest will be distributed, starting by the end of the calendar year following the calendar year of the Xxxx XXX Owner’s death (or by the end of the calendar year in which the Xxxx XXX Owner would have attained age 70½, if later), over such spouse’s life expectancy, or, if elected, in accordance with Section 4.03(B)(3) of this Agreement. If the surviving spouse dies before distributions are required to begin, the remaining interest will be distributed, starting by the end of the calendar year following the calendar year of the spouse’s death, 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 Section 4.03(B)(3) of this Agreement. If the surviving spouse dies after distributions are required to begin, any remaining interest will be distributed over the spouse’s remaining life expectancy determined using the spouse’s age as of his or her birthday in the year of the spouse’s death. 3. If there is no Designated Beneficiary, or if applicable by operation of Section 4.03(B)(1) or (B)(2) of this Agreement, the entire interest will be distributed by the end of the calendar year containing the fifth anniversary of the Xxxx XXX Owner’s death (or of the spouse’s death in the case of the surviving spouse’s death before distributions are required to begin under Section 4.03(B)(2) of this Agreement). 4. The amount to be distributed each year under Section 4.03(B)(1) or (2) of this Agreement is the quotient obtained by dividing the value of the Xxxx XXX as of the end of the preceding year by the remaining life expectancy specified in Section 4.03 of this Agreement. Life expectancy is determined using the Single Life Table in Q&A-1 of Regulations 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 Section 4.03(B)(1) or (B)(2) of this Agreement and reduced by one for each subsequent year. C. The value of the Xxxx XXX for purposes of this Section is the prior December 31 balance adjusted to include the amount of any outstanding rollovers, transfers and recharacterizations under Q&As-7 and -8 of Regulations Section 1.408-8. D. If the Designated Beneficiary is the Xxxx XXX Owner’s surviving spouse, the spouse may elect to treat the IRA as his or her own Xxxx XXX. This election will be deemed to have been made if such surviving spouse, who is the sole Beneficiary of the Xxxx XXX, makes a contribution to the Xxxx XXX or fails to take required distributions as a Beneficiary. E. The required minimum distributions payable to a Designated Beneficiary from this Xxxx XXX may be withdrawn from another IRA the Beneficiary holds from the same decedent in accordance with Q&A-9 of Regulations Section 1.408-8. F. If the Beneficiary fails to request a distribution by December 31 of the year following the year the Xxxx XXX Owner dies, the Custodian reserves the right to elect, in its complete and sole discretion, to do any one of the following: • make no distribution until the Beneficiary(ies) provides the Custodian a proper withdrawal request; • distribute the entire Xxxx XXX to the Beneficiary(ies) in a single sum payment; or • distribute the entire remaining interest to the Beneficiary(ies) pursuant to the applicable option in Section 4.03(B) of this Agreement. The Custodian will not be liable for any penalties or taxes related to the Beneficiary’s (ies’) failure to take a required minimum distribution.

Beneficiary Rights. If the Xxxx XXX Owner dies before his or her entire interest is distributed to him or her, the entire remaining interest will be distributed as follows. A. Notwithstanding any provision of this Xxxx XXX to the contrary, the distribution of the Xxxx XXX Owner’s interest in the account shall be made in accordance with the requirements of Code Section 408(a)(6), as modified by Code Section 408A(c)(5), and the Regulations thereunder, the provisions of which are herein incorporated by reference. If distributions are made from an annuity contract purchased from an insurance company, distributions thereunder must satisfy the requirements of Regulations Section 1.401(a)(9)-6 (taking into account Code Section 408A(c)(5)), rather than the distribution rules in Section 4.03(B), (C), and (D) of this Agreement. B. Upon the death of the Xxxx XXX Owner, his or her entire interest will be distributed at least as rapidly as follows. 1. If the Designated Beneficiary is someone other than the Xxxx XXX Owner’s surviving spouse, the entire interest will be distributed, starting by the end of the calendar year following the calendar year of the Xxxx XXX Owner’s death, over the remaining life expectancy of the Designated Beneficiary, with such life expectancy determined using the age of the Beneficiary as of his or her birthday in the year following the year of the Xxxx XXX Owner’s death, or, if elected, in accordance with Section 4.03(B)(3) of this Agreement. If this is an inherited Xxxx XXX within the meaning of Code Section 408(d)(3)(C) established for the benefit of a nonspouse Designated Beneficiary by a direct trustee-to-to- trustee transfer from a retirement plan of a deceased individual under Code Section 402(c)(11), then, notwithstanding any election made by the deceased individual pursuant to the preceding sentence, the nonspouse Designated Beneficiary may elect to have distributions made under Section 4.03(B)(1) of this Agreement if the transfer is made no later than the end of the year following the year of death. 2. If the Xxxx XXX Owner’s sole Designated Beneficiary is his or her surviving spouse, the entire interest will be distributed, starting by the end of the calendar year following the calendar year of the Xxxx XXX Owner’s death (or by the end of the calendar year in which the Xxxx XXX Owner would have attained age 70½, if later), over such spouse’s life expectancy, or, if elected, in accordance with Section 4.03(B)(3) of this Agreement. If the surviving spouse dies before distributions are required to begin, the remaining interest will be distributed, starting by the end of the calendar year following the calendar year of the spouse’s death, 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 Section 4.03(B)(3) of this Agreement. If the surviving spouse dies after distributions are required to begin, any remaining interest will be distributed over the spouse’s remaining life expectancy determined using the spouse’s age as of his or her birthday in the year of the spouse’s death. 3. If there is no Designated Beneficiary, or if applicable by operation of Section 4.03(B)(1) or (B)(2) of this Agreement, the entire interest will be distributed by the end of the calendar year containing the fifth anniversary of the Xxxx XXX Owner’s death (or of the spouse’s death in the case of the surviving spouse’s death before distributions are required to begin under Section 4.03(B)(2) of this Agreement). 4. The amount to be distributed each year under Section 4.03(B)(1) or (2) of this Agreement is the quotient obtained by dividing the value of the Xxxx XXX as of the end of the preceding year by the remaining life expectancy specified in Section 4.03 of this Agreement. Life expectancy is determined using the Single Life Table in Q&A-1 of Regulations 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 Section 4.03(B)(1) or (B)(2) of this Agreement and reduced by one for each subsequent year. C. The value of the Xxxx XXX for purposes of this Section is the prior December 31 balance adjusted to include the amount of any outstanding rollovers, transfers and recharacterizations under Q&As-7 and -8 of Regulations Section 1.408-8. D. If the Designated Beneficiary is the Xxxx XXX Owner’s surviving spouse, the spouse may elect to treat the IRA XXX as his or her own Xxxx XXX. This election will be deemed to have been made if such surviving spouse, who is the sole Beneficiary of the Xxxx XXX, makes a contribution to the Xxxx XXX or fails to take required distributions as a Beneficiary. E. The required minimum distributions payable to a Designated Beneficiary from this Xxxx XXX may be withdrawn from another IRA XXX the Beneficiary holds from the same decedent in accordance with Q&A-9 of Regulations Section 1.408-8. F. If the Beneficiary fails to request a distribution by December 31 of the year following the year the Xxxx XXX Owner dies, the Custodian reserves the right to elect, in its complete and sole discretion, to do any one of the following: • make no distribution until the Beneficiary(ies) provides the Custodian a proper withdrawal request; • distribute the entire Xxxx XXX to the Beneficiary(ies) in a single sum payment; or • distribute the entire remaining interest to the Beneficiary(ies) pursuant to the applicable option in Section 4.03(B) of this Agreement. The Custodian will not be liable for any penalties or taxes related to the Beneficiary’s (ies’) failure to take a required minimum distribution.