Common use of Deemed Xxxx XXX Clause in Contracts

Deemed Xxxx XXX. The provisions of this Article and Article XVII shall apply if Xxxxxx Xxxx Individual Retirement Account (“IRA”) provisions are elected in the Adoption Agreement. A Deemed Xxxx XXX is an Individual Retirement Account established under Code Section 408A under which contributions are not tax deductible and where qualifying distributions are not taxable to the Individual. The Trustee will establish and maintain a Xxxx Individual Retirement Account or Annuity in the Individual’s name under the terms as contained herein and where applicable, and any other agreement used to establish the Deemed Xxxx XXX. The account is established for the exclusive benefit of the Individual or that of the Individual’s Beneficiaries. The Individual’s account will be administered separately from any other IRA or Xxxx XXX and the assets of such Individual’s IRA or Xxxx XXX will not be commingled with the assets of any other IRA or Xxxx XXX, except in a common trust fund or common investment fund. No part of the IRA may be invested in life insurance contracts. If the IRA acquires collectibles within the meaning of Code Section 408(m) after December 31, 1981, IRA assets will be treated as a distribution in an amount equal to the cost of such collectibles. Code Section 408(m) provides an exception to this rule for certain coins and precious metals.