Equity Wash Restrictions Clause Samples
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Equity Wash Restrictions. If an internal transfer from the Traditional Annuity or a lump-sum benefit from the Traditional Annuity is to be applied, whether directly or indirectly, to an internal funding vehicle which has been designated as a competing fund, the amount of the transfer must first be applied to an internal funding vehicle which is a non-competing fund and remain in a non-competing fund for a period of at least 90 days from the effective date of the transfer. At the end of such 90-day period, the amount available to be subsequently applied to a competing fund, would be the amount originally transferred net of any increase or decrease in value resulting from the participation in the non-competing fund(s) during the 90-day period, determined in accordance with the applicable terms of those funds. This 90-day restriction (commonly known as an “equity wash”) will be administered in a manner such that when such an amount is removed from the Traditional Annuity and applied to a non-competing fund, the full 90-day period must elapse before any transfer or withdrawal made from non-competing funds and applied to competing funds will be allowed to reduce the total non-competing fund balance below the amount of the transaction that triggered the 90-day period. These “equity wash” restrictions will not apply to transactions made in connection with automated periodic or pre-scheduled purchase, redemption, exchange or transfer arrangements, including, but not limited to, salary reduction agreements, plan benefit payments, “dollar cost averaging” programs, asset allocation programs, or periodic “account rebalancing” programs.
Equity Wash Restrictions. In general, transfers out of the Fixed Account may be made at any time unless your plan includes a competing investment option (any option that includes a direct or indirect guarantee of investment performance). If a competing investment option exists, then transfers and certain withdrawals are allowed from the contract’s account provided: • A Fixed Account transfer is not directed into a competing investment option; • A transfer into a competing investment option from any non-competing investment option has not occurred within 90 calendar days; and • A partial surrender has not occurred within 90 calendar days (note that a withdrawal for the reimbursement of qualified medical expenses is not considered a partial surrender). In addition, if your plan sponsor has made a withdrawal for any reason other than for the reimbursement of a qualified medical expense (see “WITHDRAWALS” below), then no withdrawals of that type may be made for the next 90 calendar days. When applicable, equity wash restrictions are in addition to any other rules that may be in effect. Please contact your plan sponsor to find out if your plan includes a competing investment option. Any non-enforcement of the equity wash restrictions is temporary and will not constitute a waiver of these requirements.