Common use of Death of IRA Owner Clause in Contracts

Death of IRA Owner. Before January 1, 2020 – Your Designated Beneficiary is determined based on the Beneficiaries designated as of the date of your death, who remains your Beneficiaries as of September 30 of the year following the year of your death. If you die on or after your required beginning date, distributions must be made to your Beneficiaries over the longer of the single life expectancy of your Designated Beneficiaries, or your remaining life expectancy. If a Beneficiary other than a person or qualified trust as defined in the Treasury Regulations is named, you will be treated as having no Designated Beneficiary of your Traditional IRA for purposes of determining the distribution period. If there is no Designated Beneficiary of your Traditional IRA, distributions will commence using your single life expectancy, reduced by one in each subsequent year. If you die before your required beginning date, the entire amount remaining in your account will, at the election of your Designated Beneficiaries, either (a) be distributed by December 31 of the year containing the fifth anniversary of your death, or (b) be distributed over the remaining life expectancy of your Designated Beneficiaries. If your spouse is your sole Designated Beneficiary, he or she must elect either option (a) or (b) by the earlier of December 31 of the year containing the fifth anniversary of your death, or December 31 of the year life expectancy payments would be required to begin. Your Designated Beneficiaries, other than a spouse who is the sole Designated Beneficiary, must elect either option (a) or (b) by December 31 of the year following the year of your death. If no election is made, distribution will be calculated in accordance with option (b). In the case of distributions under option (b), distributions must commence by December 31 of the year following the year of your death. Generally, if your spouse is the Designated Beneficiary, distributions need not commence until December 31 of the year you would have attained age 72 (age 70½ if you would have attained age 70½ before 2020), if later. If a Beneficiary other than a person or qualified trust as defined in the Treasury Regulations is named, you will be treated as having no Designated Beneficiary of your Traditional IRA for purposes of determining the distribution period. If there is no Designated Beneficiary of your Traditional IRA, the entire Traditional IRA must be distributed by December 31 of the year containing the fifth anniversary of your death.

Death of IRA Owner. Before January 1, 2020 – Your Designated Beneficiary designated beneficiary is determined based on the Beneficiaries beneficiaries designated as of the date of your death, who remains remain your Beneficiaries beneficiaries as of September 30 of the year following the year of your death. If you die on or after your required beginning date, distributions must be made to your Beneficiaries beneficiaries over the longer of the single life expectancy of your Designated Beneficiariesdesignated beneficiaries, or your remaining life expectancy. If a Beneficiary beneficiary other than a person or qualified trust as defined in the Treasury Regulations is named, you will be treated as having no Designated Beneficiary designated beneficiary of your Traditional IRA for purposes of determining the distribution period. If there is no Designated Beneficiary designated beneficiary of your Traditional IRA, distributions will commence using your single life expectancy, reduced by one in each subsequent year. If you die before your required beginning date, the entire amount remaining in your account will, at the election of your Designated Beneficiariesdesignated beneficiaries, either (a) be distributed by December 31 of the year containing the fifth anniversary of your death, or (b) be distributed over the remaining life expectancy of your Designated Beneficiariesdesignated beneficiaries. If your spouse is your sole Designated Beneficiarydesignated beneficiary, he or she must elect either option (a) or (b) by the earlier of December 31 of the year containing the fifth anniversary of your death, or December 31 of the year life expectancy payments would be required to begin. Your Designated Beneficiariesdesignated beneficiaries, other than a spouse who is the sole Designated Beneficiarydesignated beneficiary, must elect either option (a) or (b) by December 31 of the year following the year of your death. If no election is made, distribution will be calculated in accordance with option (b). In the case of distributions under option (b), distributions must commence by December 31 of the year following the year of your death. Generally, if your spouse is the Designated Beneficiarydesignated beneficiary, distributions need not commence until December 31 of the year you would have attained age 72 (age 70½ if you would have attained age 70½ before 2020), if later. If a Beneficiary beneficiary other than a person or qualified trust as defined in the Treasury Regulations is named, you will be treated as having no Designated Beneficiary designated beneficiary of your Traditional IRA for purposes of determining the distribution period. If there is no Designated Beneficiary designated beneficiary of your Traditional IRA, the entire Traditional IRA must be distributed by December 31 of the year containing the fifth anniversary of your death.

Death of IRA Owner. Before January 1, 2020 – Your Designated Beneficiary designated beneficiary is determined based on the Beneficiaries beneficiaries designated as of the date of your death, who remains remain your Beneficiaries beneficiaries as of September 30 of the year following the year of your death. If you die on or after your required beginning date, distributions must be made to your Beneficiaries beneficiaries over the longer of the single life expectancy of your Designated Beneficiariesdesignated beneficiaries, or your remaining life expectancy. If a Beneficiary beneficiary other than a person or qualified trust as defined in the Treasury Regulations is named, you will be treated as having no Designated Beneficiary designated beneficiary of your Traditional IRA for purposes of determining the distribution period. If there is no Designated Beneficiary designated beneficiary of your Traditional IRA, distributions will commence using your single life expectancy, reduced by one in each subsequent year. If you die before your required beginning date, the entire amount remaining in your account will, at the election of your Designated Beneficiariesdesignated beneficiaries, either (a) be distributed by December 31 of the year containing the fifth anniversary of your death, or (b) be distributed over the remaining life expectancy of your Designated Beneficiariesdesignated beneficiaries. If your spouse is your sole Designated Beneficiarydesignated beneficiary, he or she must elect either option (a) or (b) by the earlier of December 31 of the year containing the fifth anniversary of your death, or December 31 of the year life expectancy payments would be required to begin. Your Designated Beneficiariesdesignated beneficiaries, other than a spouse who is the sole Designated Beneficiarydesignated beneficiary, must elect either option (a) or (b) by December 31 of the year following the year of your death. If no election is made, distribution will be calculated in accordance with option (b). In the case of distributions under option (b), distributions must commence by December 31 of the year following the year of your death. Generally, if your spouse is the Designated Beneficiarydesignated beneficiary, distributions need not commence until December 31 of the year you would have attained RMD age 72 (age 70½ if you would have attained age 70½ before 2020as described in the Required Minimum Distribution section above), if later. If a Beneficiary beneficiary other than a person or qualified trust as defined in the Treasury Regulations is named, you will be treated as having no Designated Beneficiary designated beneficiary of your Traditional IRA for purposes of determining the distribution period. If there is no Designated Beneficiary designated beneficiary of your Traditional IRA, the entire Traditional IRA must be distributed by December 31 of the year containing the fifth anniversary of your death.

Death of IRA Owner. Before January 1, 2020 – Your Designated Beneficiary designated beneficiary is determined based on the Beneficiaries beneficiaries designated as of the date of your death, who remains remain your Beneficiaries beneficiaries as of September 30 of the year following the year of your death. If you die on or after your required beginning date, distributions must be made to your Beneficiaries beneficiaries over the longer of the single life expectancy of your Designated Beneficiariesdesignated beneficiaries, or your remaining life expectancy. If a Beneficiary beneficiary other than a person or qualified trust as defined in the Treasury Regulations is named, you will be treated as having no Designated Beneficiary designated beneficiary of your Traditional IRA for purposes of determining the distribution period. If there is no Designated Beneficiary designated beneficiary of your Traditional IRA, distributions will commence using your single life expectancy, reduced by one in each subsequent year. If you die before your required beginning date, the entire amount remaining in your account will, at the election of your Designated Beneficiariesdesignated beneficiaries, either (a) be distributed by December 31 of the year containing the fifth anniversary of your death, or (b) be distributed over the remaining life expectancy of your Designated Beneficiariesdesignated beneficiaries. If your spouse is your sole Designated Beneficiarydesignated beneficiary, he or she must elect either option (a) or (b) by the earlier of December 31 of the year containing the fifth anniversary of your death, or December 31 of the year life expectancy payments would be required to begin. Your Designated Beneficiariesdesignated beneficiaries, other than a spouse who is the sole Designated Beneficiarydesignated beneficiary, must elect either option (a) or (b) by December 31 of the year following the year of your death. If no election is made, distribution will be calculated in accordance with option (b). In the case of distributions under option (b), distributions must commence by December 31 of the year following the year of your death. Generally, if your spouse is the Designated Beneficiarydesignated beneficiary, distributions need not commence until December 31 of the year you would have attained age 72 (age 70½ if you would have attained age 70½ before 2020), if later. If a Beneficiary beneficiary other than a person or qualified trust as defined in the Treasury Regulations is named, you will be treated as having no Designated Beneficiary designated beneficiary of your Traditional IRA for purposes of determining the distribution period. If there is no Designated Beneficiary designated beneficiary of your Traditional IRA, the entire Traditional IRA must be distributed by December 31 of the year containing the fifth anniversary of your death.death.‌‌‌

Death of IRA Owner. Before On or After January 1, 2020 – Your Designated Beneficiary The entire amount remaining in your account will generally be distributed by December 31 of the year containing the tenth anniversary of your death unless you have an eligible designated beneficiary or you have no designated beneficiary for purposes of determining a distribution period. This requirement applies to beneficiaries regardless of whether you die before, on, or after your required beginning date. If your beneficiary is determined an eligible designated beneficiary, the entire amount remaining in your account may be distributed (in accordance with the Treasury Regulations) over the remaining life expectancy of your eligible designated beneficiary (or over a period not extending beyond the life expectancy of such beneficiary). An eligible designated beneficiary is any designated beneficiary who is • your surviving spouse, • your child who has not reached the age of majority, • disabled (A physician must determine that your impairment can be expected to result in death or to be of long, continued, and indefinite duration.), • an individual who is not more than 10 years younger than you, or • chronically ill (A chronically ill individual is someone who (1) is unable to perform (without substantial assistance from another individual) at least two activities of daily living for an indefinite period due to a loss of functional capacity, (2) has a level of disability similar to the level of disability described above requiring assistance with daily living based on loss of functional capacity, or (3) requires substantial supervision to protect the Beneficiaries designated as individual from threats to health and safety due to severe cognitive impairment.) Note that certain trust beneficiaries (e.g., certain trusts for disabled and chronically ill individuals) may take distribution of the date entire amount remaining in your account over the remaining life expectancy of your deaththe trust beneficiary. Generally, who remains your Beneficiaries as of September 30 life expectancy distributions to an eligible designated beneficiary must commence by December 31 of the year following the year of your death. However, if your spouse is the eligible designated beneficiary, distributions need not commence until December 31 of the year you would have attained age 72, if later. If your eligible designated beneficiary is your minor child, life expectancy payments must begin by December 31 of the year following the year of your death and continue until the child reaches the age of majority. Once the age of majority is reached, the beneficiary will have 10 years to deplete the account. If a beneficiary other than a person (e.g., your estate, a charity, or a certain type of trust) is named, you will be treated as having no designated beneficiary of your IRA for purposes of determining the distribution period. If you die before your required beginning date and there is no designated beneficiary of your IRA, the entire IRA must be distributed by December 31 of the year containing the fifth anniversary of your death. If you die on or after your required beginning date, distributions must be made to your Beneficiaries over the longer of the single life expectancy of your Designated Beneficiaries, or your remaining life expectancy. If a Beneficiary other than a person or qualified trust as defined in the Treasury Regulations is named, you will be treated as having no Designated Beneficiary of your Traditional IRA for purposes of determining the distribution period. If date and there is no Designated Beneficiary designated beneficiary of your Traditional IRA, distributions will commence using your single life expectancy, reduced by one in each subsequent year. If you die before your required beginning date, the entire amount remaining in your account will, at the election of your Designated Beneficiaries, either (a) be distributed by December 31 of the year containing the fifth anniversary of your death, or (b) be distributed over the remaining life expectancy of your Designated Beneficiaries. If your spouse is your sole Designated Beneficiary, he or she must elect either option (a) or (b) by the earlier of December 31 of the year containing the fifth anniversary of your death, or December 31 of the year life expectancy payments would be required to begin. Your Designated Beneficiaries, other than a A spouse who is the sole Designated Beneficiary, must designated beneficiary of your entire IRA will be deemed to elect to treat your IRA as his or her own by either option (a1) making contributions to your IRA or (b2) failing to timely remove a required minimum distribution from your IRA. Regardless of whether or not the spouse is the sole designated beneficiary of your IRA, a spouse beneficiary may roll over his or her share of the assets to his or her own IRA. If we so choose, for any reason (e.g., due to limitations of our charter or bylaws), we may require that a beneficiary of a deceased IRA owner take total distribution of all IRA assets by December 31 of the year following the year of your death. If no election your beneficiary fails to remove a required minimum distribution after your death, an additional penalty tax of 50 percent is made, distribution will be calculated in accordance with option (b). In imposed on the case of distributions under option (b), distributions must commence by December 31 amount of the year following required minimum distribution that should have been taken but was not. Your beneficiary must file IRS Form 5329 along with his or her income tax return to report and remit any additional taxes to the year of your death. Generally, if your spouse is the Designated Beneficiary, distributions need not commence until December 31 of the year you would have attained age 72 (age 70½ if you would have attained age 70½ before 2020), if later. If a Beneficiary other than a person or qualified trust as defined in the Treasury Regulations is named, you will be treated as having no Designated Beneficiary of your Traditional IRA for purposes of determining the distribution period. If there is no Designated Beneficiary of your Traditional IRA, the entire Traditional IRA must be distributed by December 31 of the year containing the fifth anniversary of your deathIRS.

Death of IRA Owner. Before January 1, 2020 – Your Designated Beneficiary designated beneficiary is determined based on the Beneficiaries beneficiaries designated as of the date of your death, who remains remain your Beneficiaries beneficiaries as of September 30 of the year following the year of your death. If you die on or after your required beginning date, distributions must be made to your Beneficiaries beneficiaries over the longer of the single life expectancy of your Designated Beneficiariesdesignated beneficiaries, or your remaining life expectancy. If a Beneficiary beneficiary other than a person or qualified trust as defined in the Treasury Regulations is named, you will be treated as having no Designated Beneficiary designated beneficiary of your Traditional IRA for purposes of determining the distribution period. If there is no Designated Beneficiary designated beneficiary of your Traditional IRA, distributions will commence using your single life expectancy, reduced by one in each subsequent year. If you die before your required beginning date, the entire amount remaining in your account will, at the election of your Designated Beneficiariesdesignated beneficiaries, either (a) be distributed by December 31 of the year containing the fifth anniversary of your death, or (b) be distributed over the remaining life expectancy of your Designated Beneficiariesdesignated beneficiaries. If your spouse is your sole Designated Beneficiarydesignated beneficiary, he or she must elect either option (a) or (b) by the earlier of December 31 of the year containing the fifth anniversary of your death, or December 31 of the year life expectancy payments would be required to begin. Your Designated Beneficiariesdesignated beneficiaries, other than a spouse who is the sole Designated Beneficiarydesignated beneficiary, must elect either option (a) or (b) by December 31 of the year following the year of your death. If no election is made, distribution will be calculated in accordance with option (b). In the case of distributions under option (b), distributions must commence by December 31 of the year following the year of your death. Generally, if your spouse is the Designated Beneficiarydesignated beneficiary, distributions need not commence until December 31 of the year you would have attained RMD age 72 (age 70½ if you would have attained age 70½ before 2020as described in the Required Minimum Distributions section above), if later. If a Beneficiary beneficiary other than a person or qualified trust as defined in the Treasury Regulations is named, you will be treated as having no Designated Beneficiary designated beneficiary of your Traditional IRA for purposes of determining the distribution period. If there is no Designated Beneficiary designated beneficiary of your Traditional IRA, the entire Traditional IRA must be distributed by December 31 of the year containing the fifth anniversary of your death.

Death of IRA Owner. Before January 1, 2020 – 2020—Your Designated Beneficiary designated beneficiary is determined based on the Beneficiaries beneficiaries designated as of the date of your death, who remains remain your Beneficiaries beneficiaries as of September 30 of the year following the year of your death. If you die on or after your required beginning date, distributions must be made to your Beneficiaries beneficiaries over the longer of the single life expectancy of your Designated Beneficiariesdesignated beneficiaries, or your remaining life expectancy. If a Beneficiary beneficiary other than a person or qualified trust as defined in the Treasury Regulations is named, you will be treated as having no Designated Beneficiary designated beneficiary of your Traditional IRA for purposes of determining the distribution period. If there is no Designated Beneficiary designated beneficiary of your Traditional IRA, distributions will commence using your single life expectancy, reduced by one in each subsequent year. If you die before your required beginning date, the entire amount remaining in your account will, at the election of your Designated Beneficiariesdesignated beneficiaries, either (a) be distributed by December 31 of the year containing the fifth anniversary of your death, or (b) be distributed over the remaining life expectancy of your Designated Beneficiariesdesignated beneficiaries. If your spouse is your sole Designated Beneficiarydesignated beneficiary, he or she must elect either option (a) or (b) by the earlier of December 31 of the year containing the fifth anniversary of your death, or December 31 of the year life expectancy payments would be required to begin. Your Designated Beneficiariesdesignated beneficiaries, other than a spouse who is the sole Designated Beneficiarydesignated beneficiary, must elect either option (a) or (b) by December 31 of the year following the year of your death. If no election is made, distribution will be calculated in accordance with option (b). In the case of distributions under option (b), distributions must commence by December 31 of the year following the year of your death. Generally, if your spouse is the Designated Beneficiarydesignated beneficiary, distributions need not commence until December 31 of the year you would have attained age 72 (age 70½ if you would have attained age 70½ before 2020), if later. If a Beneficiary beneficiary other than a person or qualified trust as defined in the Treasury Regulations is named, you will be treated as having no Designated Beneficiary designated beneficiary of your Traditional IRA for purposes of determining the distribution period. If there is no Designated Beneficiary designated beneficiary of your Traditional IRA, the entire Traditional IRA must be distributed by December 31 of the year containing the fifth anniversary of your death.

Death of IRA Owner. Before January 1, 2020 – Your Designated Beneficiary designated beneficiary is determined based on the Beneficiaries beneficiaries designated as of the date of your death, who remains remain your Beneficiaries beneficiaries as of September 30 of the year following the year of your death. If you die on or after your required beginning date, distributions must be made to your Beneficiaries beneficiaries over the longer of the single life expectancy of your Designated Beneficiariesdesignated beneficiaries, or your remaining life expectancy. If a Beneficiary beneficiary other than a person or qualified trust as defined in the Treasury Regulations is named, you will be treated as having no Designated Beneficiary designated beneficiary of your Traditional IRA for purposes of determining the distribution period. If there is no Designated Beneficiary designated beneficiary of your Traditional IRA, distributions will commence using your single life expectancy, reduced by one in each subsequent year. If you die before your required beginning date, the entire amount remaining in your account will, at the election of your Designated Beneficiariesdesignated beneficiaries, either (a) be distributed by December 31 of the year containing the fifth anniversary of your death, or (b) be distributed over the remaining life expectancy of your Designated Beneficiariesdesignated beneficiaries. If your spouse is your sole Designated Beneficiarydesignated beneficiary, he or she must elect either option (a) or (b) by the earlier of December 31 of the year containing the fifth anniversary of your death, or December 31 of the year life expectancy payments would be required to begin. Your Designated Beneficiariesdesignated beneficiaries, other than a spouse who is the sole Designated Beneficiarydesignated beneficiary, must elect either option (a) or (b) by December 31 of the year following the year of your death. If no election is made, distribution will be calculated in accordance with option (b). In the case of distributions under option (b), distributions must commence by December 31 of the year following the year of your death. Generally, if your spouse is the Designated Beneficiarydesignated beneficiary, distributions need not commence until December 31 of the year you would have attained RMD age 72 (age 70½ if you would have attained age 70½ before 2020as described in the Required Minimum Distributions section above), if later. If a Beneficiary beneficiary other than a person or qualified trust as defined in the Treasury Regulations is named, you will be treated as having no Designated Beneficiary designated beneficiary of your Traditional IRA for purposes of determining the distribution period. If there is no Designated Beneficiary of your Traditional IRA, the entire Traditional IRA must be distributed by December 31 of the year containing the fifth anniversary of your death.distribution