Common use of Inherited Xxxx Individual Retirement Custodial Account Agreement Clause in Contracts

Inherited Xxxx Individual Retirement Custodial Account Agreement. 2. If you are the beneficiary of a deceased Xxxx XXX owner, the entire amount remaining in the inherited account will, at your election, either: (a) Be distributed by December 31 of the year containing the fifth anniversary of the original Xxxx XXX owner’s death, or (b) Be distributed over your remaining life expectancy. If you are a spouse who is the sole designated beneficiary of a Xxxx XXX owner, you must elect either option (a) or (b) by the earlier of December 31 of the year containing the fifth anniversary of the original owner’s death, or December 31 of the year life expectancy payments would be required to begin. If you are a designated beneficiary of the original Xxxx XXX owner, other than a spouse who is the sole designated beneficiary, you must elect either option (a) or (b) by December 31 of the year following the year of the original Xxxx XXX owner’s death. If no election is made, the distribution will be calculated in accordance with option (b). In the case of distributions under option (b), distributions must commence by December 31 of the year following the year of the original Xxxx XXX owner’s death. If the original Xxxx XXX owner’s designated beneficiary is not an individual or qualified trust as defined in the Treasury Regulations, the original Xxxx XXX will be treated as having no designated beneficiaries for purposes of determining the distribution period. If there is no designated beneficiary of the original Xxxx XXX, the entire inherited Xxxx XXX must be distributed by December 31 of the year containing the fifth anniversary of the original Xxxx XXX owner’s death. 3. If you have elected to take life expectancy payments and fail to request your required minimum distribution by December 31, we reserve the right to do any one of the following. (a) Make no distribution until you give us a proper withdrawal request (b) Distribute your entire inherited Xxxx XXX to you in a single sum payment (c) Determine your required minimum distribution each year based on your life expectancy calculated using the Single Life Expectancy Table, and pay those distributions to you until you direct otherwise If you fail to remove a required minimum distribution, an ad- ditional penalty tax of 50 percent is imposed on the amount of the required minimum distribution that should have been taken but was not. You must file IRS Form 5329 along with your income tax return to report and remit any additional taxes to the IRS.

Inherited Xxxx Individual Retirement Custodial Account Agreement. case of distributions under option (ii), distributions must commence by December 31 of the year following the year of the original participant’s death. Generally, if the original participant’s spouse is the designated beneficiary, distribu- tions need not commence until December 31 of the year the original participant would have attained age 72 (70½ if the original participant would have attained 70½ before 2020), if later. If the original participant’s designated beneficiary is not an individual or qualified trust as defined in the Treasury Regulations, the original retirement plan will be treated as having no designated beneficiaries for purposes of determining the distribution period. If there is no desig- xxxxx beneficiary of the original retirement plan, the entire inherited Xxxx XXX must be distributed by December 31 of the year containing the fifth anniversary of the original participant’s death. If you have inherited a qualified retirement plan, 403(a) annuity, 403(b) tax-sheltered annuity, or 457(b) gov- ernmental deferred compensation plan and have either elected or defaulted to payments under the five-year rule, you may change to a life expectancy payment election if, by December 31 of the year following the year of the origi- nal owner’s death, you remove a life expectancy-based payment before rolling over the remaining assets to your inherited Xxxx XXX. 2. If you are the beneficiary of a deceased Xxxx XXX owner, the entire amount remaining in the inherited account will, at your election, either: (a) Be distributed by December 31 of the year containing the fifth anniversary of the original Xxxx XXX owner’s death, or (b) Be distributed over your remaining life expectancy. If you are a spouse who is the sole designated beneficiary of a Xxxx XXX owner, you must elect either option (a) or (b) by the earlier of December 31 of the year containing the fifth anniversary of the original owner’s death, or December 31 of the year life expectancy payments would be required to begin. If you are a designated beneficiary of the original Xxxx XXX owner, other than a spouse who is the sole designated beneficiary, you must elect either option (a) or (b) by December 31 of the year following the year of the original Xxxx XXX owner’s death. If no election is made, the distribution will be calculated in accordance with option (b). In the case of distributions under option (b), distributions must commence by December 31 of the year following the year of the original Xxxx XXX owner’s death. If the original Xxxx XXX owner’s designated beneficiary is not an individual or qualified trust as defined in the Treasury Regulations, the original Xxxx XXX will be treated as having no designated beneficiaries for purposes of determining the distribution period. If there is no designated beneficiary of the original Xxxx XXX, the entire inherited Xxxx XXX must be distributed by December 31 of the year containing the fifth anniversary of the original Xxxx XXX owner’s death. 3. If you have elected to take life expectancy payments and fail to request your required minimum distribution by December 31, we reserve the right to do any one of the following. (a) Make no distribution until you give us a proper withdrawal request (b) Distribute your entire inherited Xxxx XXX to you in a single sum payment (c) Determine your required minimum distribution each year based on your life expectancy calculated using the Single Life Expectancy Table, and pay those distributions to you until you direct otherwise If you fail to remove a required minimum distribution, an ad- ditional penalty tax of 50 percent is imposed on the amount of the required minimum distribution that should have been taken but was not. You must file IRS Form 5329 along with your income tax return to report and remit any additional taxes to the IRS.to

Inherited Xxxx Individual Retirement Custodial Account Agreement. 2. If Life Expectancy Table, and pay those distributions to you are the beneficiary of a deceased Xxxx XXX owner, the until you direct otherwise The entire amount remaining in the inherited your account will, at your election, either: (a) Be will generally be distributed by December 31 of the year containing the fifth anniversary of the original Xxxx XXX owner’s death, or (b) Be distributed over your remaining life expectancy. If you are a spouse who is the sole designated beneficiary of a Xxxx XXX owner, you must elect either option (a) or (b) by the earlier of December 31 of the year containing the fifth tenth anniversary of the original owner’s death, death unless you are an xxx- gible designated beneficiary or December 31 the account has no designated beneficiary for purposes of the year life expectancy payments would be required to begindetermining a distribution period. If you are a designated beneficiary of the original Xxxx XXX owner, other than a spouse who is the sole an eligible designated beneficiary, you the entire amount remaining in your account may be distributed (in ac- cordance with the Treasury Regulations) over your remaining life expectancy (or over a period not extending beyond your life expectancy). An eligible designated beneficiary is any designated benefi- ciary who is: • The original owner’s surviving spouse; • The original owner’s child who has not reached the age of majority; • Disabled (a physician must elect either option determine that your impairment can be expected to result in death or to be of long, contin- ued, and indefinite duration); • An individual who is not more than 10 years younger than the original owner; or • Chronically ill (aa chronically ill individual is someone who (1) is unable to perform (without substantial assistance from another individual) at least two activities of daily living for an indefinite period due to a loss of functional capacity, (2) has a level of disability similar to the level of disability described above requiring assistance with daily living based on loss of functional capacity, or (b3) by December 31 requires substantial supervision to protect the individual from threats to health and safety due to severe cognitive impairment). Note that certain trust beneficiaries (e.g., certain trusts for disabled and chronically ill individuals) may take distribu- tion of the year following entire amount remaining in the year account over the remaining life expectancy of the original Xxxx XXX owner’s deathtrust beneficiary. If no election is madeGenerally, the distribution will be calculated in accordance with option (b). In the case of life expectancy distributions under option (b), distributions to an eligible designat- ed beneficiary must commence by December 31 of the year following the year of the original Xxxx XXX owner’s death. However, if the original owner’s spouse is the eligible designated benefi- ciary, distributions need not commence until December 31 of the year the original owner would have attained age 72, if later. If the original Xxxx XXX owner’s eligible designated beneficiary is not an individual or qualified trust as defined in the Treasury Regulationsoriginal owner’s minor child, life expectancy payments must begin by December 31 of the year following the year of the original owner’s death and continue until the child reaches the age of majority. Once the age of majority is reached, the beneficiary will have 10 years to deplete the account. If a beneficiary other than a person (e.g., the original Xxxx XXX owner’s estate, a charity, or a certain type of trust) is named, the origi- nal owner will be treated as having no designated beneficiaries beneficiary of the Xxxx XXX for purposes of determining the distribution period. If there is no designated beneficiary of the original Xxxx XXX, the entire inherited Xxxx XXX must be distributed by December 31 of the year containing the fifth anniversary of the original Xxxx XXX owner’s death. 3. The IRA beneficiary election rules are often complex. The general rules are listed below. If you have elected questions regarding an election, consult with a competent tax profes- sional or refer to take life expectancy payments and fail to request your required minimum distribution by December 31IRS Publication 590, we reserve the right to do any one of the following. Individual Retirement Arrangements (a) Make no distribution until you give us a proper withdrawal request (b) Distribute your entire inherited Xxxx XXX to you in a single sum payment (c) Determine your required minimum distribution each year based on your life expectancy calculated using the Single Life Expectancy TableIRAs), and pay those distributions to you until you direct otherwise If you fail to remove a required minimum distribution, an ad- ditional penalty tax of 50 percent for more information. This publication is imposed available on the amount of the required minimum distribution that should have been taken but was not. You must file IRS Form 5329 along with your income tax return to report and remit any additional taxes to the IRSwebsite at xxx.xxx.xxx or by calling 0-000-XXX-XXXX.

Inherited Xxxx Individual Retirement Custodial Account Agreement. The original owner’s surviving spouse; • The original owner’s child who has not reached the age of majority; • Disabled (a physician must determine that your impairment can be expected to result in death or to be of long, contin- ued, and indefinite duration); • An individual who is not more than 10 years younger than the original owner; or • Chronically ill (a chronically ill individual is someone who (1) is unable to perform (without substantial assistance from another individual) at least two activities of daily living for an indefinite period due to a loss of functional capacity, (2) has a level of disability similar to the level of disability described above requiring assistance with daily living based on loss of functional capacity, or (3) requires substantial supervision to protect the individual from threats to health and safety due to severe cognitive impairment). If you are the beneficiary Note that certain trust beneficiaries (e.g., certain trusts for disabled and chronically ill individuals) may take distribu- tion of a deceased Xxxx XXX owner, the entire amount remaining in the inherited account will, at your election, either: (a) Be distributed by December 31 over the remaining life expectancy of the year containing the fifth anniversary of the original Xxxx XXX owner’s deathtrust beneficiary. Generally, or (b) Be distributed over your remaining life expectancy. If you are a spouse who is the sole designated beneficiary of a Xxxx XXX owner, you must elect either option (a) or (b) by the earlier of December 31 of the year containing the fifth anniversary of the original owner’s death, or December 31 of the year life expectancy payments would be required distributions to begin. If you are a designated an eligible designat- ed beneficiary of the original Xxxx XXX owner, other than a spouse who is the sole designated beneficiary, you must elect either option (a) or (b) by December 31 of the year following the year of the original Xxxx XXX owner’s death. If no election is made, the distribution will be calculated in accordance with option (b). In the case of distributions under option (b), distributions must commence by December 31 of the year following the year of the original Xxxx XXX owner’s death. However, if the original owner’s spouse is the eligible designated benefi- ciary, distributions need not commence until December 31 of the year the original owner would have attained age 72, if later. If the original Xxxx XXX owner’s eligible designated beneficiary is not an individual or qualified trust as defined in the Treasury Regulationsoriginal owner’s minor child, life expectancy payments must begin by December 31 of the year following the year of the original owner’s death and continue until the child reaches the age of majority. Once the age of majority is reached, the beneficiary will have 10 years to deplete the account. If a beneficiary other than a person (e.g., the original Xxxx XXX owner’s estate, a charity, or a certain type of trust) is named, the origi- nal owner will be treated as having no designated beneficiaries beneficiary of the Xxxx XXX for purposes of determining the distribution period. If there is no designated beneficiary of the original Xxxx XXX, the entire inherited Xxxx XXX must be distributed by December 31 of the year containing the fifth anniversary of the original Xxxx XXX owner’s death. 3. The IRA beneficiary election rules are often complex. The general rules are listed below. If you have elected questions regarding an election, consult with a competent tax profes- sional or refer to take life expectancy payments and fail to request your required minimum distribution by December 31IRS Publication 590, we reserve the right to do any one of the following. Individual Retirement Arrangements (a) Make no distribution until you give us a proper withdrawal request (b) Distribute your entire inherited Xxxx XXX to you in a single sum payment (c) Determine your required minimum distribution each year based on your life expectancy calculated using the Single Life Expectancy TableIRAs), and pay those distributions to you until you direct otherwise If you fail to remove a required minimum distribution, an ad- ditional penalty tax of 50 percent for more information. This publication is imposed available on the amount of the required minimum distribution that should have been taken but was not. You must file IRS Form 5329 along with your income tax return to report and remit any additional taxes to the IRSwebsite at xxx.xxx.xxx or by calling 0-000-XXX-XXXX.