Common use of Spouse Beneficiary Clause in Contracts

Spouse Beneficiary. If you designate your spouse as the sole Beneficiary of your IRA, life expectancy payments are not required to begin to your spouse until the later of December 31 of the year you would have turned 70½ had you continued to live or December 31 of the year following the year of your death. If you have named your spouse as one of several Beneficiaries for your IRA and some or all of these Beneficiaries remain as Beneficiaries as of the BDD, your spouse may still be able to delay the commencement of distributions per the above if his or her interest in your IRA has been timely separated from the interests of the other Beneficiaries named. (See the section of this Disclosure Statement entitled "Multiple Beneficiaries and Separate Accounts Under the Final Regulations" for more details.) If your spouse, as the sole Beneficiary of your IRA, designates a Beneficiary of his or her own, and your spouse dies before distributions are required to begin under either the Life Expectancy Method or the 5-Year Rule, which ever method was either elected by your spouse or required by default, the Beneficiary named by your spouse "steps up" or assumes primary Beneficiary status as if he or she was originally named by you. The option to elect the 5-Year Rule or the Life Expectancy Method is then applied to your spouse’s Beneficiary. In applying this rule, the date of death of your surviving spouse is substituted for the date of your death. Under the final regulations, if you have designated your spouse as the sole Beneficiary of your IRA, your spouse’s Applicable Life Expectancy Multiple is redetermined or "recalculated" each year up through the year of your spouse’s death, based on the age of your spouse in each year. The ability to recalculate life expectancies each year may also apply even if your spouse is not designated as the sole Beneficiary of your IRA account if his or her interest or share in your IRA is timely separated from the interests of the other Beneficiaries you named.) In the year following your spouse’s death, the Applicable Life Expectancy Multiple to be applied by your spouse’s successor Beneficiary is based on the age of your spouse in the year of his or her death, reduced by one (1) for each year that passes thereafter. In the year that the Applicable Life Expectancy Multiple reaches zero (0), the entire remaining balance in the IRA, if any, must be distributed in full to your spouse’s successor Beneficiary.

Spouse Beneficiary. As a spouse beneficiary you may have the option of distributing the IRA assets over a single life expectancy period or within ten years (the ten-year rule). You may alternatively choose to treat the entire interest (all of the account) of the IRA as your own IRA. Under the single life expectancy, if you are the only designated beneficiary on the determination date, or if there are multiple designated beneficiaries and separate accounting applies, you will use your age each year to determine the life expectancy divisor for calculating that year’s RMD. If you designate your spouse as are the sole Beneficiary only designated beneficiary, or if there are multiple designated beneficiaries and separate accounting applies, and the IRA owner dies before his/her RBD, you can postpone commencement of your IRARMDs until the end of the year in which the IRA owner would have attained age 72. If the IRA owner dies on or after his/her RBD, you will use the longer of your single life expectancy, determined each year after the year of death using your attained age, or the IRA owner’s remaining single life expectancy payments determined in the IRA owner’s year of death and reduced by one each subsequent year. If you choose the ten-year rule, you are not required to begin to your spouse until remove all assets from the later of IRA by December 31 of the year you would have turned 70½ had you continued to live or December 31 of the tenth year following the year of your the IRA owner’s death. If you have named are the only designated beneficiary, or if there are multiple designated beneficiaries and separate accounting applies, you can treat the IRA as your spouse as own IRA at any time after the IRA owner’s death even if you had chosen one of several Beneficiaries the options above. This generally occurs after any of the remaining RMD amount for your the year of the IRA and some owner’s death has been distributed. As a spouse beneficiary, you can take a distribution of part or all of these Beneficiaries remain as Beneficiaries as your share of the BDD, your spouse may still be able IRA and roll it over to delay the commencement of distributions per the above if his or her interest in your an IRA has been timely separated from the interests of the other Beneficiaries named. (See the section of this Disclosure Statement entitled "Multiple Beneficiaries and Separate Accounts Under the Final Regulations" for more details.) If your spouse, as the sole Beneficiary of your IRA, designates a Beneficiary of his or her own, and your spouse dies before distributions are required to begin under either the Life Expectancy Method or the 5-Year Rule, which ever method was either elected by your spouse or required by default, the Beneficiary named by your spouse "steps up" or assumes primary Beneficiary status as if he or she was originally named by you. The option to elect the 5-Year Rule or the Life Expectancy Method is then applied to your spouseless that year’s Beneficiary. In applying this rule, the date of death of your surviving spouse is substituted for the date of your death. Under the final regulations, if you have designated your spouse as the sole Beneficiary of your IRA, your spouse’s Applicable Life Expectancy Multiple is redetermined or "recalculated" each year up through the year of your spouse’s death, based on the age of your spouse in each year. The ability to recalculate life expectancies each year may also apply even if your spouse is not designated as the sole Beneficiary of your IRA account if his or her interest or share in your IRA is timely separated from the interests of the other Beneficiaries you namedRMD.) In the year following your spouse’s death, the Applicable Life Expectancy Multiple to be applied by your spouse’s successor Beneficiary is based on the age of your spouse in the year of his or her death, reduced by one (1) for each year that passes thereafter. In the year that the Applicable Life Expectancy Multiple reaches zero (0), the entire remaining balance in the IRA, if any, must be distributed in full to your spouse’s successor Beneficiary.

Spouse Beneficiary. If you designate your spouse as the sole Beneficiary of your IRAXxxx XXX, life expectancy payments are not required to begin to your spouse until the later of December 31 of the year you would have turned 70½ had you continued to live or December 31 of the year following the year of your death. If you have named your spouse as one of several Beneficiaries for your IRA Xxxx XXX and some or all of these Beneficiaries remain as Beneficiaries as of the BDD, your spouse may still be able to delay the commencement of distributions per the above if his or her interest in your IRA Xxxx XXX has been timely separated from the interests of the other Beneficiaries named. (See the section of this Disclosure Statement entitled "Multiple Beneficiaries and Separate Accounts Under the Final Regulations" appearing elsewhere in this Disclosure Statement for more details.) If your spouse, as the sole Beneficiary of your IRA, designates a Beneficiary of his or her own, and your spouse dies before distributions are required to begin under either the Life Expectancy Method or the 5-Year Rule, which ever method was either elected by your spouse or required by default, the Beneficiary named by your spouse "steps up" or assumes primary Beneficiary status as if he or she was originally named by you. The option to elect the 5-Year Rule or the Life Expectancy Method is then applied to your spouse’s Beneficiary. In applying this rule, the date of death of your surviving spouse is substituted for the date of your death. Under the final regulations, if you have designated your spouse as the sole Beneficiary of your IRAXxxx XXX, your spouse’s Applicable Life Expectancy Multiple is if redetermined or "recalculated" each year up through the year of your spouse’s death, based on the age of your spouse in each year. (The ability to recalculate life expectancies each year may also apply even if your spouse is not designated as the sole Beneficiary of your IRA account Xxxx XXX if his or her interest or share in your IRA Xxxx XXX is timely separated from the interests of the other Beneficiaries you named.) In the year following your spouse’s death, the Applicable Life Expectancy Multiple to be applied by your spouse’s successor Beneficiary is based on the age of your spouse in the year of his or her death, reduced by one (1) for each year that passes thereafter. In the year that the Applicable Life Expectancy Multiple reaches zero (0), the entire remaining balance in the IRAXxxx XXX, if any, must be distributed in full to your spouse’s successor Beneficiary.