Common use of Eligible Designated Beneficiary Clause in Contracts

Eligible Designated Beneficiary. Eligible designated beneficiary status is determined on the date of your death. The following types of designated beneficiaries generally qualify as “eligible designated beneficiaries”: your spouse, a disabled individual (as defined under Code section 72(m)), a chronically ill individual as defined in Code section 401(a)(9)(E)(ii)(IV), your minor child, and an individual who is not more than 10 years younger than you. An eligible designated beneficiary may elect (in accordance with Treasury Regulations) between the 10-year rule and life expectancy payments. A minor child ceases to be an eligible designated beneficiary as of the date the child reaches the age of majority and must subsequently withdraw the remainder of his or her interest in the Inherited IRA within a 10-year period after reaching the age of majority. Non-Eligible Designated Beneficiary (Individual). Your IRA beneficiary(ies) who are individuals but are not considered eligible designated beneficiaries must generally withdraw inherited IRA assets in accordance with the Treasury Regulations under the 10-year rule. Nonperson Beneficiary. Your nonperson IRA beneficiaries (e.g., estates or charities) must generally deplete the Inherited IRA according to the 5-year rule if you die before your required beginning date, and must generally take life expectancy payments (in accordance with the Treasury Regulations) if you die on or after your required beginning date. Trust Beneficiary. Your trust beneficiaries must deplete the Inherited IRA in accordance with the Code and Treasury Regulations. Trustees of a trust named as an IRA beneficiary are strongly encouraged to seek assistance from a competent tax or legal advisor. Required Distributions Waiver. Pursuant to the Coronavirus Aid, Relief and Economic Security Act of 2020 (CARES Act), distributions required to be withdrawn in 2020 by your beneficiaries are waived. The federal government may further modify or temporarily suspend required distributions under certain circumstances, such as extreme economic conditions or other national emergencies. CUSTODIAN NOT YOUR ADVISOR

Eligible Designated Beneficiary. Eligible An eligible designated beneficiary status is determined on the date tenth year following the year of your death. is a designated beneficiary who is: 1) the IRA owner's surviving 4. The following types Not a Designated Beneficiary. A beneficiary that is not a spouse; 2) an IRA owner's minor child (through the age of designated beneficiaries generally qualify beneficiary includes a nonindividual that is an estate, majority); 3) disabled (as “eligible designated beneficiaries”: defined by law); 4) a chronically ill charitable organization, or nonqualified trust. If your spouse, a disabled beneficiary individual (as defined under Code section 72(mby law)), a chronically ill individual as defined in Code section 401(a)(9)(E)(ii)(IV), your minor child, and ; or 5) an individual who is not more is not a designated beneficiary and you die before your RBD, than 10 years younger than youthe IRA owner. An Certain qualifying trusts such a beneficiary is required to remove all assets from the IRA can also be an eligible designated beneficiary may elect (in accordance with Treasury Regulations) between beneficiary. For a qualifying trust by December 31 of the 10-fifth year rule and life expectancy payments. A minor child ceases following the year of your to be an eligible designated beneficiary as of beneficiary, generally the date qualifying death (the child reaches the age of majority and must subsequently withdraw the remainder of his or her interest in the Inherited IRA within a 10-year period after reaching the age of majority. Non-Eligible Designated Beneficiary (Individual). Your IRA beneficiary(ies) who are individuals but are not considered eligible designated beneficiaries must generally withdraw inherited IRA assets in accordance with the Treasury Regulations under the 10five-year rule). Nonperson Beneficiary. Your nonperson IRA beneficiaries (e.g., estates or charities) must generally deplete the Inherited IRA according to the 5-year rule if you die before your required beginning date, and must generally take life expectancy payments (in accordance with the Treasury Regulations) if If you die on or after your required beginning date. Trust Beneficiary. Your RBD, such trust beneficiaries must deplete be eligible designated beneficiaries. a beneficiary must use your remaining single life expectancy to calculate the Inherited RMD. Your remaining single life expectancy divisor is Annual Statements. Each year we will furnish you and the IRS with determined in the year of your death using your age at the end of statements reflecting the activity in your IRA. You and the IRS will that year and then reducing the divisor by one for each subsequent receive IRS Forms 5498, IRA in accordance with the Code Contribution Information, and Treasury Regulations1099-R, year's calculation. Trustees of a trust named as an IRA beneficiary are strongly encouraged to seek assistance from a competent tax Distributions From Pensions, Annuities, Retirement or legal advisor. Required Distributions Waiver. Pursuant to the Coronavirus Aid, Relief and Economic Security Act of 2020 (CARES Act), distributions required to be withdrawn in 2020 by your beneficiaries are waived. The federal government may further modify or temporarily suspend required distributions under certain circumstances, such as extreme economic conditions or other national emergencies. CUSTODIAN NOT YOUR ADVISORProfit-Sharing

Eligible Designated Beneficiary. Eligible designated beneficiary status is determined on the date of your death. The following types of designated beneficiaries generally qualify as “eligible designated beneficiaries”: your spouse, a disabled individual (as defined under Code section 72(m)), a chronically ill individual as defined in Code section 401(a)(9)(E)(ii)(IV), your minor child, and an individual who is not more than 10 years younger than you. An eligible designated beneficiary may elect (in accordance with Treasury Regulations) between the 10-year rule and life expectancy payments. A minor child ceases to be an eligible designated beneficiary as of the date the child reaches the age of majority and must subsequently withdraw the remainder of his or her interest in the Inherited IRA within a 10-year period after reaching the age of majority. Non-Eligible Designated Beneficiary (Individual). Your IRA beneficiary(ies) who are individuals but are not considered eligible designated beneficiaries must generally withdraw inherited IRA assets in accordance with the Treasury Regulations under the 10-year rule. Nonperson Beneficiary. Your nonperson IRA beneficiaries (e.g., estates or charities) must generally deplete the Inherited IRA according to the 5-year rule if you die before your required beginning date, and must generally take life expectancy payments (in accordance with the Treasury Regulations) if you die on or after your required beginning date. Trust Beneficiary. Your trust beneficiaries must deplete the Inherited IRA in accordance with the Code and Treasury Regulations. Trustees of a trust named as an IRA beneficiary are strongly encouraged to seek assistance from a competent tax or legal advisor. Required Distributions Waiver. Pursuant to the Coronavirus Aid, Relief and Economic Security Act of 2020 (CARES Act), distributions required to be withdrawn in 2020 by your beneficiaries are waived. The federal government may further modify or temporarily suspend required distributions under certain circumstances, such as extreme economic conditions or other national emergencies. CUSTODIAN NOT YOUR ADVISORTAX WITHHOLDING CORRECTION OF EXCESS CONTRIBUTIONS

Eligible Designated Beneficiary. Eligible An eligible designated beneficiary status is determined on date (September 30 of the date year following the year of your death) will is a designated beneficiary who is: 1) the Xxxx XXX owner's still be considered for the sake of determining the distribution period. The following types surviving spouse; 2) a Xxxx XXX owner's minor child (through the If any named beneficiary that is not an individual, such as an estate age of designated beneficiaries generally qualify majority); 3) disabled (as “eligible designated beneficiaries”: defined by law); 4) a chronically ill or charity, has an interest in your spouse, a disabled Xxxx XXX on the determination individual (as defined under Code section 72(mby law)), a chronically ill individual as defined in Code section 401(a)(9)(E)(ii)(IV), your minor child, and ; or 5) an individual who is not more date, and separate accounting does not apply, your Xxxx XXX will be than 10 years younger than youthe Xxxx XXX owner. An Certain qualifying treated as having no designated beneficiary (i.e., not a designated trusts can also be an eligible designated beneficiary. For a qualifying beneficiary). trust to be an eligible designated beneficiary, generally the qualifying 6. Qualifying Trusts. If you name a qualifying trust, which is defined trust beneficiaries must be eligible designated beneficiaries. in Treasury Regulations, as your Xxxx XXX beneficiary, the a. Spouse Beneficiary. Your spouse beneficiary may elect have the beneficiaries of the qualifying trust are treated as the beneficiaries of option of distributing the Xxxx XXX assets over a single life your Xxxx XXX for purposes of determining the appropriate expectancy period or within ten years (the ten-year rule). Your distribution period. A qualifying trust provides documentation of its spouse beneficiary may alternatively choose to treat the entire beneficiaries to the trustee. interest (all of the account) of the Xxxx XXX as his/her own Xxxx 7. Successor Beneficiaries. Our policy may allow your beneficiaries to IRA. name their own successor beneficiaries to your Xxxx XXX. A Under single life expectancy, if your spouse is your only successor beneficiary would receive any of your Xxxx XXX assets that designated beneficiary on the determination date, or if there are remain after your death and the subsequent death of your multiple designated beneficiaries and separate accounting applies, beneficiaries. Generally, the beneficiary will have to distribute all the he/she will use his/her age each year to determine the life remaining Xxxx XXX assets within a ten-year period. expectancy divisor for calculating that year's RMD. If your 8. Separate Accounting (Multiple Beneficiaries). Our policies may spouse is the only designated beneficiary, or if there are multiple permit separate accounting to be applied to your Xxxx XXX for the designated beneficiaries and separate accounting applies, your benefit of your beneficiaries. If permitted, separate accounting must surviving spouse can postpone commencement of his/her RMDs be applied in accordance with Treasury Regulations) between . If there are until the 10-year rule and life expectancy payments. A minor child ceases to be an eligible designated beneficiary as end of the date year in which you would have attained age 73. multiple beneficiaries, a beneficiary is considered the child reaches only If your spouse beneficiary chooses the age of majority and must subsequently withdraw the remainder of his or her interest in the Inherited IRA within a 10-year period after reaching the age of majority. Non-Eligible Designated Beneficiary (Individual). Your IRA beneficiary(ies) who are individuals but are not considered eligible designated beneficiaries must generally withdraw inherited IRA assets in accordance with the Treasury Regulations under the 10ten-year rule. Nonperson Beneficiary. Your nonperson IRA beneficiaries (e.g., estates or charities) must generally deplete he/she is beneficiary of their share of the Inherited IRA according to the 5-year rule Xxxx XXX assets if you die before your required beginning date, and must generally take life expectancy payments (in accordance with the Treasury Regulations) if you die on or after your required beginning date. Trust Beneficiary. Your trust beneficiaries must deplete the Inherited IRA in accordance with the Code and Treasury Regulations. Trustees of a trust named as an IRA beneficiary are strongly encouraged to seek assistance from a competent tax or legal advisor. Required Distributions Waiver. Pursuant to the Coronavirus Aid, Relief and Economic Security Act of 2020 (CARES Act), distributions separate required to be withdrawn in 2020 remove all assets from the Xxxx XXX by December 31 accounting applies. If separate accounting applies, the rules above of the tenth year following the year of your death. apply based on the type of beneficiary (i.e., designated beneficiary, Your spouse beneficiary can treat your Xxxx XXX as his/her own eligible designated beneficiary, not a designated beneficiary). Xxxx XXX if your spouse is the only designated beneficiary, or if Federal Income Tax Status of Your Xxxx XXX. there are multiple designated beneficiaries and separate 1. No Deduction for Contributions. Xxxx XXX contributions are waivednot accounting applies. The He/she has this option even if he/she had deductible on your federal government may further modify or temporarily suspend required distributions under certain circumstances, such as extreme economic conditions or other national emergencies. CUSTODIAN NOT YOUR ADVISORincome tax return at any time.