Common use of Effect of Withdrawals, Distributions and Transfers during the Accumulation Phase Clause in Contracts

Effect of Withdrawals, Distributions and Transfers during the Accumulation Phase. An election to take out a withdrawal during the Accumulation Phase will be considered an Excess Withdrawal that will be deducted from both the Benefit Base and the Covered Fund Value. The Benefit Base will be adjusted by the ratio of the Covered Fund Value immediately after the Excess Withdrawal to the Covered Fund Value immediately before the Excess Withdrawal. During the Accumulation Phase, all withdrawals, distributions, and Transfers will result in a permanent reduction in future GAWs. Numerical Example Covered Fund Value before the Excess Withdrawal adjustment = $50,000 Benefit Base = $100,000 Excess Withdrawal amount: $10,000 Covered Fund Value after adjustment= $50,000 - $10,000 = $40,000 Covered Fund Value adjustment = $40,000/$50,000 = 0.80 Adjusted Benefit Base = $100,000 x 0.80 = $80,000 Any Transfer out of a Covered Fund(s) by the Owner during the Accumulation Phase will be an Excess Withdrawal. If the Owner transfers Contract Value out of a Covered Fund, he or she will be prohibited from making any Transfer into the same Covered Fund(s) for at least 90 calendar days. At the time of any partial or periodic distribution, if the Covered Person(s) reached the minimum age of Covered Person listed on the Contract Data Page, the Owner may elect to begin receiving Installments and establish the XXX% at that time. If the Owner chooses not to establish the XXX%, the distribution will be treated as an Excess Withdrawal. If the Covered Person(s) has not yet reached the minimum age of Covered Person listed on the Contract Data Page, then any partial or periodic distribution will be treated as an Excess Withdrawal. The IRA Owner should consult a qualified tax advisor regarding withdrawals to satisfy his or her RMD amount under the IRA and other tax implications of RMD withdrawals during the Accumulation Phase of this Contract.

Effect of Withdrawals, Distributions and Transfers during the Accumulation Phase. An election to take out a withdrawal other than a XXX during the Accumulation Phase will be considered an Excess Withdrawal that will be deducted from both the Benefit Base and the Covered Fund Value. The Benefit Base will be adjusted reduced by the ratio of the Covered Fund Value immediately after the Excess Withdrawal to the Covered Fund Value immediately before the Excess Withdrawal. During the Accumulation Phase, all withdrawals, distributions, and Transfers will result in a permanent reduction in future GAWs. Numerical Example Covered Fund Value before the Excess Withdrawal adjustment = $50,000 Benefit Base = $100,000 Excess Withdrawal amount: $10,000 Covered Fund Value after adjustment= $50,000 - $10,000 = $40,000 Covered Fund Value adjustment = $40,000/$50,000 = 0.80 Adjusted Benefit Base = $100,000 x 0.80 = $80,000 Any Transfer out of a Covered Fund(s) by the Owner during the Accumulation Phase will be an Excess Withdrawal. If the Owner transfers Contract Value any asset out of a Covered FundFund(s), he or she will shall be prohibited from making any Transfer into the same Covered Fund(s) for at least 90 ninety (90) calendar days. At the time of any partial or periodic distribution, if the Covered Person(s) reached the minimum is 55 years of age of Covered Person listed on the Contract Data Pageor older, the Owner may elect to begin receiving Installments and establish the his or her XXX% at that time. If the Owner chooses not to establish the XXX%, the distribution will be treated as an Excess Withdrawal. If the Covered Person(s) has is not yet reached the minimum age of Covered Person listed on the Contract Data Page55 years old, then any partial or periodic distribution will be treated as an Excess Withdrawal. The IRA Any distribution from the Covered Fund(s) required to satisfy any contribution limitation imposed on the Owner by the Code will be an Excess Withdrawal at all times. A GLWB Elector should consult a qualified tax advisor regarding withdrawals to satisfy his or her RMD amount under the IRA and other tax implications of RMD withdrawals during the Accumulation Phase of this the Contract.

Effect of Withdrawals, Distributions and Transfers during the Accumulation Phase. An election to take out a withdrawal during the Accumulation Phase will be considered an Excess Withdrawal that will be deducted from both the Benefit Base and the Covered Fund Value. The Benefit Base will be adjusted by the ratio of the Covered Fund Value immediately after the Excess Withdrawal to the Covered Fund Value immediately before the Excess Withdrawal. During the Accumulation Phase, all withdrawals, distributionsDistributions, and Transfers will result in a permanent reduction in future GAWs. Numerical Example Covered Fund Value before the Excess Withdrawal adjustment = $50,000 Benefit Base = $100,000 Excess Withdrawal amount: $10,000 Covered Fund Value after adjustment= $50,000 - $10,000 = $40,000 Covered Fund Value adjustment = $40,000/$50,000 = 0.80 Adjusted Benefit Base = $100,000 x 0.80 = $80,000 Any Transfer out of a Covered Fund(s) by the Owner GLWB Participant during the Accumulation Phase will be an Excess Withdrawal. If the Owner a GLWB Participant transfers Contract GLWB Participant Account Value out of a Covered Fund, he or she will be prohibited from making any Transfer into the same Covered Fund(s) for at least 90 calendar days. At the time of any partial or periodic distributionDistribution, if the Covered Person(s) reached is [55] years of age or older and there has been a distribution event under the minimum age of Covered Person listed on the Contract Data PageCode, the Owner GLWB Participant may elect to begin receiving Installments and establish the his or her XXX% at that time. If the Owner GLWB Participant chooses not to establish the XXX%, the distribution Distribution will be treated as an Excess Withdrawal. If the Covered Person(s) has is not yet reached the minimum age of Covered Person listed on the Contract Data Page[55] years old, then any partial or periodic distribution Distribution will be treated as an Excess Withdrawal. The IRA Owner Any Distribution from the Covered Fund(s) required to satisfy any contribution limitation imposed by the Code on the Plan or on the Plan Participant will be an Excess Withdrawal at all times. A GLWB Participant should consult a qualified tax advisor regarding withdrawals to satisfy his or her RMD amount under the IRA and other tax implications of RMD withdrawals during the Accumulation Phase of this Contract.

Effect of Withdrawals, Distributions and Transfers during the Accumulation Phase. An election to take out a withdrawal during the Accumulation Phase will be considered an Excess Withdrawal that will be deducted from both the Benefit Base and the Covered Fund Value. The Benefit Base will be adjusted by the ratio of the Covered Fund Value immediately after the Excess Withdrawal to the Covered Fund Value immediately before the Excess Withdrawal. During the Accumulation Phase, all withdrawals, distributionsDistributions, and Transfers will result in a permanent reduction in future GAWs. Numerical Example Covered Fund Value before the Excess Withdrawal adjustment = $50,000 Benefit Base = $100,000 Excess Withdrawal amount: $10,000 Covered Fund Value after adjustment= $50,000 - $10,000 = $40,000 Covered Fund Value adjustment = $40,000/$50,000 = 0.80 Adjusted Benefit Base = $100,000 x 0.80 = $80,000 Any Transfer out of a Covered Fund(s) by the Owner GLWB Participant during the Accumulation Phase will be an Excess Withdrawal. If the Owner a GLWB Participant transfers Contract GLWB Participant Account Value out of a Covered Fund, he or she will be prohibited from making any Transfer into the same Covered Fund(s) for at least 90 calendar days. At the time of any partial or periodic distributionDistribution, if the Covered Person(s) reached is [55] years of age or older and there has been a distribution event under the minimum age of Covered Person listed on the Contract Data PageCode, the Owner GLWB Participant may elect to begin receiving Installments and establish the his or her XXX% at that time. If the Owner GLWB Participant chooses not to establish the XXX%, the distribution Distribution will be treated as an Excess Withdrawal. If the Covered Person(s) has is not yet reached the minimum age of Covered Person listed on the Contract Data Page[55] years old, then any partial or periodic distribution Distribution will be treated as an Excess Withdrawal. The IRA Owner Any Distribution from the Covered Fund(s) required to satisfy any contribution limitation imposed by the Code, on the Plan or on the Plan Participant will be an Excess Withdrawal at all times. A GLWB Participant should consult a qualified tax advisor regarding withdrawals to satisfy his or her RMD amount under the IRA and other tax implications of RMD withdrawals during the Accumulation Phase of this Contract.

Effect of Withdrawals, Distributions and Transfers during the Accumulation Phase. An election to take out a withdrawal during the Accumulation Phase will be considered an Excess Withdrawal that will be deducted from both the Benefit Base and the Covered Fund Value. The Benefit Base will be adjusted by the ratio of the Covered Fund Value immediately after the Excess Withdrawal to the Covered Fund Value immediately before the Excess Withdrawal. During the Accumulation Phase, all withdrawals, distributions, and Transfers will result in a permanent reduction in future GAWs. Numerical Example Covered Fund Value before the Excess Withdrawal adjustment = $50,000 Benefit Base = $100,000 Excess Withdrawal amount: $10,000 Covered Fund Value after adjustment= $50,000 - $10,000 = $40,000 Covered Fund Value adjustment = $40,000/$50,000 = 0.80 Adjusted Benefit Base = $100,000 x 0.80 = $80,000 Any Transfer out of a Covered Fund(s) by the Owner during the Accumulation Phase will be an Excess Withdrawal. If the Owner transfers Contract Value out of a Covered Fund, he or she will be prohibited from making any Transfer into the same Covered Fund(s) for at least 90 calendar days. At the time of any partial or periodic distribution, if the Covered Person(s) reached the minimum age of Covered Person listed on the Contract Data Page, the Owner may elect to begin receiving Installments and establish the XXX% at that time. If the Owner chooses not to establish the XXX%, the distribution will be treated as an Excess Withdrawal. If the Covered Person(s) has not yet reached the minimum age of Covered Person listed on the Contract Data Page, then any partial or periodic distribution will be treated as an Excess Withdrawal. The IRA XXX Owner should consult a qualified tax advisor regarding withdrawals to satisfy his or her RMD amount under the IRA XXX and other tax implications of RMD withdrawals during the Accumulation Phase of this Contract.