Common use of Systematic Exchange Program Clause in Contracts

Systematic Exchange Program. The Systematic Exchange Program allows the exchange of a minimum of $200 from one Static or Individual Fund Investment Option to another Static or Individual Fund Investment Option in the same Fee Structure on a pre-scheduled basis (“Systematic Exchange”). Systematic exchanges are not permitted between an Age-Based Investment Option and Static Investment Options/ Individual Fund Investment Options or between multiple Age-Based Investment Options. In order to establish the Systematic Exchange Program, you must deposit a minimum contribution of at least $2,500 into a “source” Investment Option. When you establish a Systematic Exchange, you must select a preset dollar amount of $200 or more to be exchanged into each of one or more preselected “receiving” Investment Options over a preset period of time, either monthly or quarterly. Any Static Investment Option or Individual Fund Investment Option can serve as the source Investment Option or receiving Investment Option. Systematic Exchange does not ensure a profit or protect against loss in a declining market. Systematic Exchange commits you to a preset investment in the receiving Investment Option(s) selected regardless of fluctuating prices. If Systematic Exchange is selected at the time that an account is opened or after an account is opened and is selected for new contributions, it will be considered the initial investment strategy for that account and not be counted toward the investment change limit for that Beneficiary for the calendar year. If Systematic Exchange is selected for money already deposited into an account after an account is opened or if any changes to a current Systematic Exchange Program are made, that selection or change will be counted toward the investment change limit for that Beneficiary for the calendar year. Before establishing a Systematic Exchange Program, you should carefully consider with your Financial Advisor the risks associated with selecting and creating a Systematic Exchange Program. Anyone can make contributions to an account. However, only the account owner and a custodian of an UGMA or UTMA account where the custodian is the parent or guardian of the Beneficiary of an UGMA or UTMA account, are eligible for a Nebraska state income tax deduction for contributions made by him or her. In addition, only the account owner maintains control over all contributions to an account regardless of their source, including the right to change Investment Options and make withdrawals from an account. For the purpose of an UGMA, UTMA or minor-owned account, the minor is the account owner. Under current law, the gift and GST tax consequences of a contribution by anyone other than the account owner are unclear. Accordingly, if a person other than the account owner plans to make a contribution to an account, that person should consult his or her own tax or legal advisors as to the consequences of a contribution. Contributions can be made to an account by: by downloading and submitting a form available on the Plan’s website, or by calling the Plan (if you have previously submitted certain information about the bank account from which the money will be withdrawn). For both EFT and AIP you must provide the Plan with your banking instructions. For AIP you must also indicate the amount and frequency you want the ongoing contributions to occur. If the account owner does not own the bank account, the account owner and bank account owner must authorize in writing the use of the other person’s bank account. This can be accomplished on the Automatic Investment Plan/Electronic Funds Transfer Form that establishes or changes bank account information for your account. The bank must be a U.S. bank and the contribution must be in U.S. dollars. You can initiate EFT contributions, change your bank, stop AIP or change your AIP contribution amount or frequency online by accessing the secure website. You can also make such changes by submitting a form available through your Financial Advisor or on the Plan’s website or by calling the Plan. If your EFT or AIP contribution cannot be processed because of insufficient funds or incomplete or inaccurate information, or if the transaction would violate processing restrictions, the Plan reserves the right to suspend future EFT or AIP contributions. The account owner will be responsible for any losses or expenses incurred by the Investment Option. We do not charge a fee for EFT or AIP transactions. When you contribute to your account through AIP you are authorizing us to receive periodic automated debits from a checking or savings account at your bank (if your bank is a member of the Automated Clearing House), subject to certain processing restrictions. Your AIP authorization will remain in effect until we have received notification of its termination from you and we have had a reasonable amount of time to act on it. AIP debits from your bank account will occur on the day you indicate, provided the day is a regular business day. If the day you indicate falls on a weekend or a holiday, the AIP debit will occur on the next business day (“debit date”). Quarterly AIP debits will be made on the day you indicate (or the next business day, if applicable). You will receive a trade date of the business day on which the bank debit occurs. The start date for an AIP must be at least three business days from the date of submission of the AIP request. If a start date for an AIP is less than three business days from the date of the submission of the AIP request, the AIP will start on the requested day in the next succeeding period. A program of regular investments cannot assure a profit or protect against a loss in a declining market.

Systematic Exchange Program. The Systematic Exchange Program allows the exchange of a minimum of $200 from one Static or Individual Fund Investment Option to another Static or Individual Fund Investment Option in the same Fee Structure on a pre-scheduled basis (“Systematic Exchange”). Effective August 23, 2021, Systematic exchanges Exchanges will expand to include the exchange of a minimum of $200 from one Investment Option to another Investment Option (of any kind) on a pre-scheduled basis. Until August 23, 2021, Systematic Exchanges are not permitted between an Age-Based Investment Option and Static Investment Options/ Static/Individual Fund Investment Options or between multiple Age-Based Investment Options. In order to establish the Systematic Exchange ProgramExchange, you must deposit a minimum contribution of at least $2,500 into a “source” Investment Option. When you establish a Systematic Exchange, you must select a preset dollar amount of $200 or more to be exchanged into each of one or more preselected “receiving” Investment Options over a preset period of time, either monthly or quarterly. Any Static Investment Option or Individual Fund Investment Option can serve as the source Investment Option or receiving Investment Option. Systematic Exchange does not ensure a profit or protect against loss in a declining market. Systematic Exchange commits you to a preset investment in the receiving Investment Option(s) selected regardless of fluctuating prices. If Systematic Exchange is selected at the time that an account is opened or after an account is opened and is selected for new contributions, it will be considered the initial investment strategy for that account and not be counted toward the investment change limit for that Beneficiary for the calendar year. If Systematic Exchange is selected for money already deposited into an account after an account is opened or if any changes to a current Systematic Exchange Program are made, that selection or change will be counted toward the investment change limit for that Beneficiary for the calendar year. Before establishing a Systematic Exchange ProgramExchange, you should carefully consider with your Financial Advisor tax professional or a financial advisor the risks associated with selecting and creating a Systematic Exchange ProgramExchange. Anyone can make contributions to an account. However, only the account owner and a custodian of an UGMA or UTMA account where the custodian is the parent or guardian of the Beneficiary of an UGMA or UTMA account, are eligible for a Nebraska state income tax deduction for contributions made by him or her. In addition, only the account owner maintains control over all contributions to an account regardless of their source, including the right to change Investment Options and make withdrawals from an account. For the purpose of an UGMA, UTMA or minor-owned account, the minor is the account owner. Under current law, the gift and GST tax consequences of a contribution by anyone other than the account owner are unclear. Accordingly, if a person other than the account owner plans to make a contribution to an account, that person should consult his or her own tax or legal advisors as to the consequences of a contribution. Contributions can be made to an account by: • Contributing electronically from your bank account • Checks • Wire transfer • Payroll direct deposit • Rollover from an out-of-state 529 qualified tuition program • Xxxxxxxxx Education Savings Account • Redemption from certain U.S. Savings Bonds • Transfer within the Plan • UGMA or UTMA accounts • GiftED Account owners can authorize contributions from their checking or savings account at their bank into their Plan account for one- at-a-time contributions (an “Electronic Funds Transfer” or “EFT”) or prescheduled, ongoing contributions (“Automatic Investment Plan” or “AIP”), subject to certain processing restrictions. The bank from which the contribution is drawn must be a member of the Automated Clearing House. You can authorize these instructions when you complete an Enrollment Form, or, after your account is opened, online by accessing the secure website, by downloading and submitting a form available on the Plan’s website, website or by calling the Plan (if you have previously submitted certain information about the bank account from which the money will be withdrawn). For both EFT and AIP AIP, you must provide the Plan with your banking instructions. For AIP you must also indicate the amount and frequency you want the ongoing contributions to occur. If the account owner does not own the bank account, the account owner and bank account owner must authorize in writing the use of the other person’s their bank account. This can be accomplished on the Automatic Investment Plan/Electronic Funds Transfer Form that establishes or changes bank account information for your account. The bank must be a U.S. bank and the contribution must be in U.S. dollars. You can initiate EFT contributions, change your bank, stop AIP or change your AIP contribution amount or frequency online by accessing the secure website. You can also make such changes by downloading and submitting a form available through your Financial Advisor or on the Plan’s website or by calling the Plan. If your EFT or AIP contribution cannot be processed because of insufficient funds or incomplete or inaccurate information, or if the transaction would violate processing restrictions, the Plan reserves the right to suspend future EFT or AIP contributions. The account owner will be responsible for any losses or expenses incurred by the Investment Option. We do not charge a fee for EFT or AIP transactions. When you contribute to your account through AIP you are authorizing us to receive periodic automated debits from a checking or savings account at your bank (if your bank is a member of the Automated Clearing House), subject to certain processing restrictions. Your AIP authorization will remain in effect until we have received notification of its termination from you and we have had a reasonable amount of time to act on it. AIP debits from your bank account will occur on the day you indicate, provided the day is a regular business day. If the day you indicate falls on a weekend or a holiday, the AIP debit will occur on the next business day (“debit date”). Quarterly AIP debits will be made on the day you indicate (or the next business day, if applicable). You will receive a trade date of the business day on which the bank debit occurs. The start date for an AIP must be at least three business days from the date of submission of the AIP request. If a start date for an AIP is less than three business days from the date of the submission of the AIP request, the AIP will start on the requested day in the next succeeding period. A program of regular investments cannot assure a profit or protect against a loss in a declining market.

Systematic Exchange Program. The Systematic Exchange Program allows the exchange of a minimum of $200 from one Static or Individual Fund Investment Option to another Static or Individual Fund Investment Option in the same Fee Structure on a pre-scheduled basis (“Systematic Exchange”). Systematic exchanges are not permitted between an Age-Based Investment Option and Static Investment Options/ Individual Fund Investment Options or between multiple Age-Based Investment Options. In order to establish the Systematic Exchange Program, you must deposit a minimum contribution of at least $2,500 into a “source” Investment Option. When you establish a Systematic Exchange, you must select a preset dollar amount of $200 or more to be exchanged into each of one or more preselected “receiving” Investment Options over a preset period of time, either monthly or quarterly. Any Static Investment Option or Individual Fund Investment Option can serve as the source Investment Option or receiving Investment Option. Systematic Exchange does not ensure a profit or protect against loss in a declining market. Systematic Exchange commits you to a preset investment in the receiving Investment Option(s) selected regardless of fluctuating prices. If Systematic Exchange is selected at the time that an account is opened or after an account is opened and is selected for new contributions, it will be considered the initial investment strategy for that account and not be counted toward the investment change limit for that Beneficiary for the calendar year. If Systematic Exchange is selected for money already deposited into an account after an account is opened or if any changes to a current Systematic Exchange Program are made, that selection or change will be counted toward the investment change limit for that Beneficiary for the calendar year. Before establishing a Systematic Exchange Program, you should carefully consider with your Financial Advisor State Farm Registered Representative the risks associated with selecting and creating a Systematic Exchange Program. Anyone can make contributions to an account. However, only the account owner and a custodian of an UGMA or UTMA account where the custodian is the parent or guardian of the Beneficiary of an UGMA or UTMA account, are eligible for a Nebraska state income tax deduction for contributions made by him or her. In addition, only the account owner maintains control over all contributions to an account regardless of their source, including the right to change Investment Options and make withdrawals from an account. For the purpose of an UGMA, UTMA or minor-owned account, the minor is the account owner. Under current law, the gift and GST tax consequences of a contribution by anyone other than the account owner are unclear. Accordingly, if a person other than the account owner plans to make a contribution to an account, that person should consult his or her own tax or legal advisors as to the consequences of a contribution. Contributions can be made to an account by: by downloading and submitting a form available on the Plan’s website, or by calling the Plan (if you have previously submitted certain information about the bank account from which the money will be withdrawn). For both EFT and AIP you must provide the Plan with your banking instructions. For AIP you must also indicate the amount and frequency you want the ongoing contributions to occur. If the account owner does not own the bank account, the account owner and bank account owner must authorize in writing the use of the other person’s bank account. This can be accomplished on the Automatic Investment Plan/Plan/ Electronic Funds Transfer Form that establishes or changes bank account information for your account. The bank must be a U.S. bank and the contribution must be in U.S. dollars. You can initiate EFT contributions, change your bank, stop AIP or change your AIP contribution amount or frequency online by accessing the secure website. You can also make such changes by submitting a form available through your Financial Advisor or State Farm Registered Representative, on the Plan’s website or by calling the Plan. If your EFT or AIP contribution cannot be processed because of insufficient funds or incomplete or inaccurate information, or if the transaction would violate processing restrictions, the Plan reserves the right to suspend future EFT or AIP contributions. The account owner will be responsible for any losses or expenses incurred by the Investment Option. We do not charge a fee for EFT or AIP transactions. When you contribute to your account through AIP you are authorizing us to receive periodic automated debits from a checking or savings account at your bank (if your bank is a member of the Automated Clearing House), subject to certain processing restrictions. Your AIP authorization will remain in effect until we have received notification of its termination from you and we have had a reasonable amount of time to act on it. AIP debits from your bank account will occur on the day you indicate, provided the day is a regular business day. If the day you indicate falls on a weekend or a holiday, the AIP debit will occur on the next business day (“debit date”). Quarterly AIP debits will be made on the day you indicate (or the next business day, if applicable). You will receive a trade date of the business day on which the bank debit occurs. The start date for an AIP must be at least three business days from the date of submission of the AIP request. If a start date for an AIP is less than three business days from the date of the submission of the AIP request, the AIP will start on the requested day in the next succeeding period. A program of regular investments cannot assure a profit or protect against a loss in a declining market.