Common use of Recharacterization of Contributions Clause in Contracts

Recharacterization of Contributions. Assets held on behalf of the Depositor in a Xxxx XXX may be transferred (“recharacterized”) via a trustee-to-trustee transfer to the Custodian, in a form and manner acceptable to the Custodian, to be held in the Custodial Account for the Depositor under this Agreement. The Custodian will not be responsible for any penalties or losses the Depositor may incur as a result of the timing of any such recharacterization from another trustee or custodian that are due to circumstances reasonably beyond the control of the Custodian. Annual contributions held on behalf of the Depositor in the Account may be recharacterized through a trustee-to-trustee transfer to a trustee or custodian of a Xxxx XXX established for the Depositor, if so directed by the Depositor (or, with the prior consent of the Custodian, the Depositor’s Authorized Agent) in a form and manner acceptable to the Custodian. It shall be the Depositor’s responsibility in all cases to ensure that the recharacterization is permissible and satisfies the requirements of Code Section 408A and any related regulations, and any other applicable guidance issued by the Internal Revenue Service.

Recharacterization of Contributions. Assets held on behalf of the Depositor in a Xxxx XXX may be transferred (“recharacterized”) via a trustee-to-trustee transfer to the Custodian, in a form and manner acceptable to the Custodian, to be held in the Custodial Account for the Depositor under this Agreement. The Custodian will not be responsible for any penalties or losses the Depositor may incur as a result of the timing of any such recharacterization from another trustee or custodian that are due to circumstances reasonably beyond the control of the Custodian. Annual contributions held on behalf of the Depositor in the Account may be recharacterized through a trustee-to-trustee transfer to a trustee or custodian of a Xxxx XXX established for the Depositor, if so directed by the Depositor (or, or with the prior consent of the Custodian, the Depositor’s Authorized Agent) in a form and manner acceptable to the Custodian. It shall be the Depositor’s responsibility in all cases to ensure that the recharacterization is permissible and satisfies the requirements of Code Section 408A and any related regulations, and any other applicable guidance issued by the Internal Revenue Service.