Common use of Distributions Beginning After Death Clause in Contracts

Distributions Beginning After Death. If the Participant dies before distribution of his or her Custodial Account balance begins, the Participant's entire Custodial Account balance will be distributed in accordance with one of the following four provisions: (1) The Participant's entire Custodial Account balance will be paid by December 31 of the calendar year containing the fifth anniversary of the Participant's death. (2) If the Participant's Custodial Account balance is payable to a Beneficiary designated by the Participant and the Participant has not elected (1) above, then the entire Custodial Account balance will be distributed in substantially equal install meets over the life or over a period certain not greater than the life expectancy of the designated Beneficiary commencing on or bef ore December 31 of the calendar year immediately following the calendar year in which the Participant died. The designated Beneficiary may elect at any time to receive greater payments. (3) If the designated Beneficiary of the Participant is the Participant's surviving spouse, the spouse may elect to receive equal or substantially equal payments over the life or life expectancy of the surviving spouse commencing at any date prior to the later of (1) December 31 of the calendar year immediately following the calendar year in which the Participant died and (2) December 31 of the calendar year in which the Participant would have attained age 70 1/2. Such election must be made no later than the earlier of December 31 of the calendar year containing the fifth anniversary of the Participant's death or the date distributions are required to begin pursuant to the preceding sentence. The surviving spouse may accelerate these payments at any time, LQ., increase the frequency or amount of such payments. (4) If the designated Beneficiary is the Participant's surviving spouse, the spouse may treat the Custodial Account as his or her own individual retirement arrangement (XXX). This election will be deemed to have been made if such surviving spouse makes a regular XXX contribution to this Custodial Account, makes a rollover to or from this Custodial Account, or fails to elect any of the above three (3) provisions.

Distributions Beginning After Death. If the Participant Annuitant dies before distribution of his or his/her Custodial Account balance interest begins, the ParticipantAnnuitant's entire Custodial Account balance interest will be distributed in accordance with one of the following four provisions: (1) a. The ParticipantAnnuitant's entire Custodial Account balance interest will be paid by December 31 of the calendar year containing the fifth anniversary of the ParticipantAnnuitant's death. (2) b. If the ParticipantAnnuitant's Custodial Account balance interest is payable to a Beneficiary beneficiary designated by the Participant Annuitant and the Participant Annuitant has not elected (18)(a) above, then the entire Custodial Account balance interest will be distributed in substantially equal install meets over the life or over a period certain not greater than the life expectancy of the designated Beneficiary beneficiary commencing on or bef ore before December 31 of the calendar year immediately following the calendar year in which the Participant Annuitant died. The designated Beneficiary beneficiary may elect at any time to receive greater payments.. Page 2 24882-1297 ---------- LQA24882ST 11-97 AQA309ST (3) c. If the designated Beneficiary beneficiary of the Participant Annuitant is the ParticipantAnnuitant's surviving spouse, the spouse may elect to receive equal or substantially equal payments over the life or life expectancy of the surviving spouse commencing at any date prior to the later of (1) December 31 of the calendar year immediately following the calendar year in which the Participant Annuitant died and (2) December 31 of the calendar year in which the Participant Annuitant would have attained age 70 1/2. Such election must be made no not later than the earlier of December 31 of the calendar year containing the fifth anniversary of the ParticipantAnnuitant's death or the date distributions are required to begin pursuant to the preceding sentence. The surviving spouse may accelerate these payments at any time, LQ., increase the frequency or amount of such payments. (4) d. If the designated Beneficiary beneficiary is the ParticipantAnnuitant's surviving spouse, the spouse may treat the Custodial Account contract as his or his/her own individual retirement arrangement Individual Retirement Arrangement (XXXIRA). This election will be deemed to have been made if such surviving spouse makes a regular XXX IRA contribution to this Custodial Account, makes or a rollover to or from this Custodial Accountsuch contract, or fails to elect any of the above three provisions. AMENDMENT OF CONTRACT TO QUALIFY AS XXXX INDIVIDUAL RETIREMENT ANNUITY (3"XXXX XXX") provisionsUNDER SECTION 408A OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED ("CODE") -SECTIONS 9 AND 10 APPLY IF THE ANNUITANT HAS DESIGNATED THIS CONTRACT AS A XXXX XXX.

Distributions Beginning After Death. If the Participant dies before distribution of his or her Custodial Account balance begins, the Participant's entire Custodial Account balance will be distributed in accordance with one of the following four provisions: (1) The Participant's entire Custodial Account balance will be paid by December 31 of the calendar year containing the fifth anniversary of the Participant's death. (2) If the Participant's Custodial Account balance is payable to a Beneficiary designated by the Participant and the Participant has not elected (1) above, then the entire Custodial Account balance will be distributed in substantially equal install meets installments over the life or over a period certain not greater than the life expectancy of the designated Beneficiary commencing on or bef ore before December 31 of the calendar year immediately following the calendar year in which the Participant died. The designated Beneficiary may elect at any time to receive greater payments. (3) If the designated Beneficiary of the Participant is the Participant's surviving spouse, the spouse may elect to receive equal or substantially equal payments over the life or life expectancy of the surviving spouse commencing at any date prior to the later of (1) December 31 of the calendar year immediately following the calendar year in which the Participant died and (2) December 31 of the calendar year in which the Participant would have attained age 70 1/2. Such election must be made no later than the earlier of December 31 of the calendar year containing the fifth anniversary of the Participant's death or the date distributions are required to begin pursuant to the preceding sentence. The surviving spouse may accelerate these payments at any time, LQ.i.e., increase the frequency or amount of such payments. (4) If the designated Beneficiary is the Participant's surviving spouse, the spouse may treat the Custodial Account as his or her own individual retirement arrangement (XXX). This election will be deemed to have been made if such surviving spouse makes a regular XXX contribution to this Custodial Account, makes a rollover to or from this Custodial Account, or fails to elect any of the above three (3) provisions.

Distributions Beginning After Death. If the Participant dies before distribution of his or her Custodial Account balance begins, the Participant's entire Custodial Account balance will be distributed in accordance with one of the following four provisions: (1) The Participant's entire Custodial Account balance will be paid by December 31 of the calendar year containing the fifth anniversary of the Participant's death. (2) If the Participant's Custodial Account balance is payable to a Beneficiary designated by the Participant and the Participant has not elected (1) above, then the entire Custodial Account balance will be distributed in substantially equal install meets over the life or over a period certain not greater than the life expectancy of the designated Beneficiary commencing on or bef ore December 31 of the calendar year immediately following the calendar year in which the Participant died. The designated Beneficiary may elect at any time to receive greater payments. (3) If the designated Beneficiary of the Participant is the Participant's surviving spouse, the spouse may elect to receive equal or substantially equal payments over the life or life expectancy of the surviving spouse commencing at any date prior to the later of (1) December 31 of the calendar year immediately following the calendar year in which the Participant died and (2) December 31 of the calendar year in which the Participant would have attained age 70 1/2. Such election must be made no later than the earlier of December 31 of the calendar year containing the fifth anniversary of the Participant's death or the date distributions are required to begin pursuant to the preceding sentence. The surviving spouse may accelerate these payments at any time, LQ.i.e., increase the frequency or amount of such payments. (4) If the designated Beneficiary is the Participant's surviving spouse, the spouse may treat the Custodial Account as his or her own individual retirement arrangement (XXX). This election will be deemed to have been made if such surviving spouse makes a regular XXX contribution to this Custodial Account, makes a rollover to or from this Custodial Account, or fails to elect any of the above three (3) provisions.