Common use of Distributions from the Account Clause in Contracts

Distributions from the Account. Distributions from the Account will be made only upon the request of the Depositor (or with the prior consent of the Custodian, the Authorized Agent, or following the death of the Depositor, the Beneficiary) in such form and in such manner as is acceptable to the Custodian. Distributions from the Account after the five year period beginning January 1 for which an initial Xxxx XXX contribution is made to a Xxxx XXX, or, if earlier, January 1 of the year in which the first conversion contribution is made to a Xxxx XXX (the “Five Year Period”), and provided the distribution is made after the Depositor reaches age 591/2 or is made on account of the death, disability or constitutes a distribution for qualified first time home purchase expenses shall not be included in the Depositor’s (or following the death of the Depositor, the Beneficiary’s) gross income. The Custodian shall neither be responsible for recordkeeping such five-year period nor for determining whether any distribution from a Xxxx XXX qualifies as a tax-free distribution. Notwithstanding Article V, Paragraph 3, if the Depositor’s surviving spouse is the Depositor’s sole Beneficiary, the remaining interest in the Account may, at the election of the surviving spouse, be distributed by December 31 of the year containing the fifth anniversary of the Depositor’s death or, be distributed over the life expectancy of the surviving spouse starting no later than December 31 of the year following the year of the Depositor’s death. In addition, if the Depositor’s surviving spouse is the Depositor’s sole Beneficiary, the surviving spouse may elect to treat the Decedent’s Xxxx XXX as his or her own. For distributions requested pursuant to Article V, life expectancy shall be calculated based on information provided by the Depositor (or, with the prior consent of the Custodian, the Authorized Agent, or following the death of the Depositor, the Beneficiary) using the applicable distribution period from a table prescribed by the Internal Revenue Service in regulations or other guidance. The Custodian shall be under no duty to perform any calculations in connection with distributions requested pursuant to Article V, unless otherwise required to do so by the Internal Revenue Service. Notwithstanding the foregoing, at the direction of the Depositor (or following the death of the Depositor, the Beneficiary), and with the consent of the Custodian, the Custodian may perform calculations in connection with such distributions. The Custodian shall not incur any liability for errors in such calculations as a result of its reliance on information provided by the Depositor (the Authorized Agent, or following the death of the Depositor, the Beneficiary) or the Broker. Without limiting the generality of the foregoing, the Custodian is not obligated to make any distribution absent a specific written direction from the Depositor (the Authorized Agent, or following the death of the Depositor, the Beneficiary) to do so in a form and manner acceptable to the Custodian, and the Custodian may rely, and shall be fully protected in so relying upon any such written direction. Notwithstanding the above and Section 18 below, the Custodian is authorized to make a distribution absent the Depositor’s (or following the death of the Depositor, the Beneficiary’s) direction if instructed to do so pursuant to a levy, or a court order of any kind, or in the event the Custodian resigns or is removed as Custodian. In such instance, neither the Custodian nor the Company shall, in any event, incur any liability for acting in accordance with such levy or court order, or with the procedures for resignation or removal in Section 24 below. The Custodian will not, under any circumstances, be responsible for the timing, purpose or propriety of any distribution made hereunder nor shall the Custodian incur any liability or responsibility for any tax imposed on account of any distribution, or failure to make a distribution. Notwithstanding anything herein to the contrary, on or before December 31, 2003, a Beneficiary receiving distributions pursuant to Paragraph 1(b) of Article V of this Custodial Agreement may generally begin taking distributions over the Beneficiary’s remaining life expectancy in accordance with Section 401(a)(9) of the Code and related regulations.

Distributions from the Account. Distributions from the Account will be made only upon the request of the Depositor (or with the prior consent of the Custodian, the Authorized Agent, or following the death of the Depositor, the Beneficiary) in such form and in such manner as is acceptable to the Custodian. Distributions from the Account after the five five-year period beginning January 1 of the year for which an initial Xxxx XXX contribution is made to a Xxxx XXX, XXX or, if earlier, January 1 of the year in which the first conversion contribution is made to a Xxxx XXX (the “Five Five-Year Period”), and provided the distribution is made after the Depositor reaches age 591/2 59½ or is made on account of the Depositor’s death, disability disability, or constitutes a distribution for qualified first first-time home purchase expenses expenses, shall not be included in the Depositor’s (or following the death of the Depositor, the Beneficiary’s) gross income. The Custodian shall neither be responsible for recordkeeping such fiveFive-year period Year Period nor for determining whether any distribution from a Xxxx XXX qualifies as a tax-free distribution. Notwithstanding Article V, Paragraph 3, if the Depositor’s surviving spouse is the Depositor’s sole Beneficiary, the remaining interest in the Account may, at the election of the surviving spouse, be distributed by December 31 of the year containing the fifth anniversary of the Depositor’s death ordeath, or be distributed over the life expectancy of the surviving spouse starting no later than December 31 of the year following the year of the Depositor’s death. In addition, if the Depositor’s surviving spouse is the Depositor’s sole Beneficiary, the surviving spouse may elect to treat the Decedentdecedent’s Xxxx XXX as his or her own. For distributions requested pursuant to Article V, life expectancy shall be is calculated based on information provided by the Depositor (or, or with the prior consent of the Custodian, the Authorized Agent, or following the death of the Depositor, the Beneficiary) using the any applicable distribution period from a table tables prescribed by the Internal Revenue Service in regulations or other guidance. The Custodian shall be under no duty to perform any calculations in connection with distributions requested pursuant to Article V, unless otherwise specifically required to do so by the Internal Revenue Service. Notwithstanding the foregoing, at the direction of the Depositor (or with the prior consent of the Custodian, the Authorized Agent, or following the death of the Depositor, the Beneficiary), and with the consent of the Custodian, the Custodian may perform calculations in connection with such distributions. The Custodian shall not incur any liability for errors in any such calculations as a result of its reliance on information provided by the Depositor (or with the prior consent of the Custodian, the Authorized Agent, Agent or following the death of the Depositor, the Beneficiary) or the BrokerFinancial Representative. Without limiting the generality of the foregoing, the Custodian is not obligated to make any distribution absent a specific written direction from the Depositor (or with the prior consent of the Custodian, the Authorized Agent, or following the death of the Depositor, the Beneficiary) to do so in a form and manner acceptable to the Custodian, and the Custodian may rely, and shall be fully protected in so relying relying, upon any such written direction. Notwithstanding the above and Section 18 below, the Custodian is authorized to make a distribution absent the Depositor’s (or with the prior consent of the Custodian, the Authorized Agent’s, or following the death of the Depositor, the Beneficiary’s) direction if instructed directed to do so pursuant to a levy, levy or a court order of any kind, or in the event the Custodian resigns or is removed as Custodiancustodian. In such instance, neither the Custodian nor the Company shall, in any event, incur any liability for acting in accordance with such levy or court order, or with the procedures for resignation or removal in Section 24 below. The Custodian will not, under any circumstances, be responsible for the timing, purpose purpose, or propriety of any distribution made hereunder hereunder, nor shall the Custodian incur any liability or responsibility for any tax or penalty imposed on account of any distribution, or failure to make a required distribution. Notwithstanding anything herein to the contrary, on or before December 31, 2003, a Beneficiary receiving distributions pursuant to Paragraph 1(b) of Article V of this Custodial Agreement may generally begin taking distributions over the Beneficiary’s remaining life expectancy in accordance with Section 401(a)(9) of the Code and related regulations.

Distributions from the Account. Distributions from the Account will be made only upon the request of the Depositor (or with the prior consent of the Custodian, the Authorized Agent, or following the death of the Depositor, the Beneficiary) in such form and in such manner as is acceptable to the Custodian. Distributions from the Account after the five five-year period beginning January 1 for which an initial Xxxx XXX contribution is made to a Xxxx XXX, or, if earlier, January 1 of the year in which the first conversion contribution is made to a Xxxx XXX (the “Five Five-Year Period”), and provided the distribution is made after the Depositor reaches age 591/2 or is made on account of the death, disability or constitutes a distribution for qualified first first-time home purchase expenses shall not be included in the Depositor’s (or following the death of the Depositor, the Beneficiary’s) gross income. The Custodian shall neither be responsible for recordkeeping such five-year period nor for determining whether any distribution from a Xxxx XXX qualifies as a tax-free distribution. Notwithstanding Article V, Paragraph 3, if the Depositor’s surviving spouse is the Depositor’s sole Beneficiary, the remaining interest in the Account may, at the election of the surviving spouse, be distributed by December 31 of the year containing the fifth anniversary of the Depositor’s death or, be distributed over the life expectancy of the surviving spouse starting no later than December 31 of the year following the year of the Depositor’s death. In addition, if the Depositor’s surviving spouse is the Depositor’s sole Beneficiary, the surviving spouse may elect to treat the Decedent’s Xxxx XXX as his or her own. For distributions requested pursuant to Article V, life expectancy shall be calculated based on information provided by the Depositor (or, with the prior consent of the Custodian, the Authorized Agent, or following the death of the Depositor, the Beneficiary) using the applicable distribution period from a table prescribed by the Internal Revenue Service in regulations or other guidance. The Custodian shall be under no duty to perform any calculations in connection with distributions requested pursuant to Article V, unless otherwise required to do so by the Internal Revenue Service. Notwithstanding the foregoing, at the direction of the Depositor (or following the death of the Depositor, the Beneficiary), and with the consent of the Custodian, the Custodian may perform calculations in connection with such distributions. The Custodian shall not incur any liability for errors in such calculations as a result of its reliance on information provided by the Depositor (the Authorized Agent, or following the death of the Depositor, the Beneficiary) or the Broker. Without limiting the generality of the foregoing, the Custodian is not obligated to make any distribution absent a specific written direction from the Depositor (the Authorized Agent, or following the death of the Depositor, the Beneficiary) to do so in a form and manner acceptable to the Custodian, and the Custodian may rely, and shall be fully protected in so relying upon any such written direction. Notwithstanding the above and Section 18 below, the Custodian is authorized to make a distribution absent the Depositor’s (or following the death of the Depositor, the Beneficiary’s) direction if instructed to do so pursuant to a levy, or a court order of any kind, or in the event the Custodian resigns or is removed as Custodian. In such instance, neither the Custodian nor the Company shall, in any event, incur any liability for acting in accordance with such levy or court order, or with the procedures for resignation or removal in Section 24 below. The Custodian will not, under any circumstances, be responsible for the timing, purpose or propriety of any distribution made hereunder nor shall the Custodian incur any liability or responsibility for any tax imposed on account of any distribution, or failure to make a distribution. Notwithstanding anything herein to the contrary, on or before December 31, 2003, a Beneficiary receiving distributions pursuant to Paragraph 1(b) of Article V of this Custodial Agreement may generally begin taking distributions over the Beneficiary’s remaining life expectancy in accordance with Section 401(a)(9) of the Code and related regulations.