Common use of Limitations and Restrictions Clause in Contracts

Limitations and Restrictions. (a) Under an SEP Plan that meets the requirements of Section 408(k) of the Code, your employer may make contributions to your XXX. Your employer is required to provide you with information that describes the terms of your employer’s SEP Plan. (b) Transfer of your XXX assets to a named Beneficiary or Beneficiaries made during your life and at your request or because of your failure to instruct otherwise, may be subject to federal gift tax under Section 2501 of the Code. However, the naming of a Beneficiary or Beneficiaries generally will not subject you to gift tax liability. (c) Any withdrawal from your XXX, except a direct transfer to another XXX or qualified plan, is subject to federal income tax withholding and, perhaps, state income tax withholding. You may, however, elect not to have withholding apply to your XXX withdrawal. If withholding is applied to your withdrawal, not less than 10% (or other amount as prescribed by applicable law) of the amount withdrawn must be withheld for federal income tax. Special federal income tax withholding rules may apply if the distribution is sent outside of the United States. (d) If you or your Beneficiary or Beneficiaries engage in a prohibited transaction with your XXX, as described in IRC Section 4975 of the Code, the XXX will lose its tax exemption and you must include the value of your account in your gross income for that taxable year. In addition, if you are under the age of 59½, the “distribution” also will be subject to both ordinary income tax and the 10% penalty tax for premature distributions. (e) If you pledge any portion of your XXX as collateral for a loan, the amount so pledged will be treated as a distribution and will be included in your gross income for that year. (f) If you are age 70½ or older, you may make tax-free distributions of up to $100,000 per year directly from your XXX to certain charitable organizations. Special tax rules may apply. For further detailed information you may wish to obtain IRS Publication 590, Individual Retirement Arrangements, from the IRS. This provision applies to distributions during tax years 2006 and 2007.

Limitations and Restrictions. (a) Under an SEP Plan that meets the requirements of Section 408(k) of the Code, your employer may make contributions to your XXXIRA. Your employer is required to provide you with information that describes the terms of your employer’s SEP Plan. (b) Transfer of your XXX IRA assets to a named Beneficiary or Beneficiaries made during your life and at your request or because of your failure to instruct otherwise, may be subject to federal gift tax under Section 2501 of the Code. However, the naming of a Beneficiary or Beneficiaries generally will not subject you to gift tax liability. (c) Any withdrawal from your XXXIRA, except a direct transfer to another XXX IRA or qualified plan, is subject to federal income tax withholding and, perhaps, state income tax withholding. You may, however, elect not to have withholding apply to your XXX IRA withdrawal. If withholding is applied to your withdrawal, not less than 10% (or other amount as prescribed by applicable law) of the amount withdrawn must be withheld for federal income tax. Special federal income tax withholding rules may apply if the distribution is sent outside of the United States. (d) If you or your Beneficiary or Beneficiaries engage in a prohibited transaction with your XXXIRA, as described in IRC Section 4975 of the Code, the XXX IRA will lose its tax exemption and you must include the value of your account in your gross income for that taxable year. In addition, if you are under the age of 59½591⁄ , the “distribution” also will be subject to both ordinary income tax and the 10% penalty tax for premature distributions. (e) If you pledge any portion of your XXX IRA as collateral for a loan, the amount so pledged will be treated as a distribution and will be included in your gross income for that year. (f) If you are age 70½ 701⁄ or older, you may make tax-free distributions of up to $100,000 per year directly from your XXX IRA to certain charitable organizations. Special tax rules may apply. For further detailed information you may wish to obtain IRS Publication 590, Individual Retirement Arrangements, from the IRS. This provision applies to distributions during tax years 2006 and 2007.

Limitations and Restrictions. (a) Under an SEP Plan that meets the requirements of Section 408(k) of the Code, your employer may make contributions to your XXX. Your employer is required to provide you with information that describes the terms of your employer’s SEP Plan. (b) Transfer of your XXX assets to a named Beneficiary or Beneficiaries made during your life and at your request or because of your failure to instruct otherwise, may be subject to federal gift tax under Section 2501 of the Code. However, the naming of a Beneficiary or Beneficiaries generally will not subject you to gift tax liability. (c) Any withdrawal from your XXX, except a direct transfer to another XXX or qualified plan, is subject to federal income tax withholding and, perhaps, state income tax withholding. You may, however, elect not to have withholding apply to your XXX withdrawal. If withholding is applied to your withdrawal, not less than 10% (or other amount as prescribed by applicable law) of the amount withdrawn must be withheld for federal income tax. Special federal income tax withholding rules may apply if the distribution is sent outside of the United States. (d) If you or your Beneficiary or Beneficiaries engage in a prohibited transaction with your XXX, as described in IRC Section 4975 of the Code, the XXX will lose its tax exemption and you must include the value of your account in your gross income for that taxable year. In addition, if you are under the age of 59½591⁄ , the “distribution” also will be subject to both ordinary income tax and the 10% penalty tax for premature distributions. (e) If you pledge any portion of your XXX as collateral for a loan, the amount so pledged will be treated as a distribution and will be included in your gross income for that year. (f) If you are age 70½ 701⁄ or older, you may make tax-free distributions of up to $100,000 per year directly from your XXX to certain charitable organizations. Special tax rules may apply. For further detailed information you may wish to obtain IRS Publication 590, Individual Retirement Arrangements, from the IRS. This provision applies to distributions during tax years 2006 and 2007.