EQUITABLE LIFE INSURANCE SIMPLE RETIREMENT
COMPANY OF IOWA ACCOUNT RIDER
A Stock Company Domiciled in Iowa
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The following language amends the Contract to which it is attached in order that
such Contract may be treated as a Simple Individual Retirement Annuity under
Section 408(b) of the Internal Revenue Code, as amended from time to time. The
effective date of this Rider is the later of January 1, 2002, or the Contract
Date.
In the event of any conflict between the provisions of this Rider and the
Contract to which it is attached, the provisions of this Rider shall control.
This SIMPLE IRA cannot be used by a trustee, custodian, or issuer that is a
designated financial institution within the meaning of IRC Section 408(p)(7).
1. ALL REFERENCES IN THIS RIDER TO:
(a) "IRC" means the Internal Revenue Code of 1986, as amended from time to
time.
(b) "Contract" means the Contract or Certificate to which this Rider is
attached.
(c) "Owner" means the Owner of the Contract to which this Rider is
attached.
(d) "Designated Beneficiary" means the beneficiary named by the Owner in
the Contract.
(e) "We", "our", and "us" means Equitable Life Insurance Company of Iowa.
2. NONFORFEITABILITY AND NONTRANSFERABILITY.
This Contract shall be for the exclusive benefit of the Owner or his
or her beneficiary. The Owner's rights under this Contract shall be
nonforfeitable.
This Contract is nontransferable. Other than to us, it may not be
sold, assigned, discounted or pledged as collateral for a loan or as a
security for the performance of an obligation or for any other
purpose.
3. CONTRIBUTIONS.
This SIMPLE IRA will accept only:
(a) a cash contribution made by an employer on behalf of the Owner
under a SIMPLE IRA plan that meets the requirements of Section
408 (p) of the Internal Revenue Code, and
(b) a rollover contribution or a transfer of assets from another
SIMPLE IRA of the Owner.
No other contributions will be accepted. Any refund of premiums (other
than those attributable to excess contributions) will be applied,
before the close of the calendar
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year following the year of the refund, toward the payment of future
premiums or the purchase of additional benefits.
4. DISTRIBUTIONS BEFORE DEATH MUST COMMENCE NO LATER THAN AGE 70 1/2.
(a) Notwithstanding any provision of this SIMPLE IRA to the contrary,
the distribution of the Owner's interest in the SIMPLE IRA shall
be made in accordance with the requirements of Code Section
408(b)(3) and the regulations there under, the provisions of
which are herein incorporated by reference. If distributions are
not made in the form of an annuity on an irrevocable basis
(except for acceleration), then distribution of the interest in
the SIMPLE IRA (as determined under Section 4(c) below), must
satisfy the requirements of Code Section 408(a)(6) and the
regulations there under, rather than paragraphs (b), (c) and (d)
below, and Section 5 of this Rider.
(b) The entire interest of the Owner will commence to be distributed
no later than the first day of April following the calendar year
in which the Owner attains age 70 1/2(the "required beginning
date") over: (1) the life of the Owner or the lives of such
Owners and his or her Designated Beneficiary; or (2) a period
certain not extending beyond the life expectancy of the Owner, or
the joint Owner and last survivor expectancy of the Owner and his
or her beneficiary. Payments must be made in periodic payments at
intervals of no longer than 1 year and must be either
non-increasing or they may increase only as provided in Q&As-1
and -4 of Section 1.401(a)(9)-6T of the Temporary Income Tax
Regulations (or as provided in such Final Regulations as may be
subsequently published). In addition, any distribution must
satisfy the incidental benefit requirements specified in Q&A-2 of
Section 1.401(a)(9)-6T.
(c) The distribution periods described in paragraph (b) above cannot
exceed the periods specified in Section 1.401(a)(9)-6T of the
Temporary Income Tax Regulations (or as provided in such Final
Regulations as may be subsequently published).
(d) The first required payment can be made as late as April 1 of the
year following the year the Owner attains age 70 1/2 and must be
the payment that is required for one payment interval. The second
payment need not be made until the end of the next payment
interval.
5. DISTRIBUTION UPON DEATH.
(a) Death on or After Required Distributions Commence. If the Owner
dies on or after required distributions commence, the remaining
portion of his or her interest will continue to be distributed
under the contract option chosen.
(b) Death Before Required Distributions Commence. If the Owner dies
before required distributions commence, his or her entire
interest will be distributed at least as rapidly as follows:
1. If the designed beneficiary is someone other than the
Owner's surviving spouse, the entire interest will be
distributed, starting by the end of the calendar year
following the calendar year of the Owner's death, over the
remaining life expectancy of the Designated Beneficiary,
with such life expectancy determined using the age of the
beneficiary as of his or her
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birthday in the year following the year of the Owner's
death, or if elected, in accordance with paragraph (b)(3)
below.
2. If the Owner's sole Designated Beneficiary is the Owner's
surviving spouse, the entire interest will be distributed,
starting by the end of the calendar year following the
calendar year of the Owner's death (or by the end of the
calendar year in which the Owner would have attained age 70
1/2, if later), over such spouse's life, or if elected, in
accordance with paragraph (b)(3) below. If the surviving
spouse dies before required distributions commence to him or
her, the remaining interest will be distributed, starting by
the end of the calendar year following the calendar year of
the spouse's death, over the spouse's Designated
Beneficiary's remaining life expectancy determined using
such beneficiary's age as of his or her birthday in the year
following the death of the spouse, or if elected, will be
distributed in accordance with paragraph (b)(3) below. If
the surviving spouse dies after the required distributions
commence to him or her, any remaining interest will continue
to be distributed under the contract option chosen.
3. If there is no Designated Beneficiary, or if applicable by
operation of paragraph (b)(1) or (b)(2) above, the entire
interest will be distributed by the end of the calendar year
containing the fifth anniversary of the Owner's death (or of
the spouse's death in the case of the surviving spouse's
death before distributions are required to begin under
paragraph (b)(2) above).
4. Life expectancy is determined using the Single Life Table in
Q&A-1 of Section 1.401(a)(9)-9 of the Income Tax
Regulations. If distributions are being made to a surviving
spouse as the sole Designated Beneficiary, such spouse's
remaining life expectancy for a year is the number in the
Single Life Table corresponding to such spouse's age in the
year. In all other cases, remaining life expectancy for a
year is the number in the Single Life Table corresponding to
the beneficiary's age in the year specified in paragraph
(b)(1) or (2) above and reduced by 1 for each subsequent
year.
(c) The "interest" in the SIMPLE IRA includes the amount of any
outstanding rollover, transfer, and recharacterization under
Q&As-7 and -8 of Section 1.408-8 of the Income Tax Regulations
and the actuarial value of any other benefits provided under the
SIMPLE IRA, such as guaranteed death benefits.
(d) For purposes of paragraphs (a) and (b) above, required
distributions are considered to commence on the Owner's required
beginning date or, if applicable, on the date distributions are
required to begin to the surviving spouse under paragraph (b)(2)
above. However, if distributions start prior to the applicable
date in the preceding sentence, on an irrevocable basis (except
for acceleration) under an annuity contract meeting the
requirements of Section 1.401(a)(9)-6T of the Temporary Income
Tax Regulations (or as provided in such Final Regulations as may
be subsequently published), then required distributions are
considered to commence on the annuity starting date.
(e) If the sole Designated Beneficiary is the Owner's surviving
spouse, the spouse may elect to treat the SIMPLE IRA as his or
her own SIMPLE IRA.
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This election will be deemed to have been made if such surviving
spouse makes a contribution to the SIMPLE IRA (permitted under
the contribution rules for SIMPLE IRAs as if the surviving spouse
were the Owner) or fails to take required distributions as a
beneficiary.
6. RESTRICTIONS ON ROLLOVERS AND TRANSFERS. Prior to the expiration of
the 2-year period beginning on the date the Owner first participated
in any SIMPLE IRA plan maintained by the Owner's employer, any
rollover or transfer by the Owner of funds from this SIMPLE IRA must
be made to another SIMPLE IRA of the Owner. Any distribution of funds
to the Owner during this 2-year period may be subject to a 25-percent
additional tax if the Owner does not roll over the amount distributed
into a SIMPLE IRA. After the expiration of this 2-year period, the
Owner may roll over or transfer funds to any SIMPLE IRA of the Owner
that is qualified under Code Section 408(a), (b) or (p), or to another
eligible retirement plan described in Code Section 402(c)(8)(B).
7. AMENDMENTS. We reserve the right to amend or administer this Contract
and Rider as necessary to comply with the provisions of the IRC,
Internal Revenue Service Regulations or published Internal Revenue
Service Rulings. We will send a copy of such amendment to the Owner.
It will be mailed to the last post office address known to us. Any
such changes will apply uniformly to all Contracts that are affected
and the Owner will have the right to accept or reject such changes.
8. PERIODIC REPORTS. We will send the Owner an annual report that shows
the status of the Contract as of the end of each calendar year and
such information concerning required minimum distributions as is
prescribed by the Commissioner of Internal Revenue.
If contributions made on behalf of the Owner under a SIMPLE IRA plan
maintained by the Owner's employer are received directly by us from the
employer, we will provide the employer with the summary description
required by Code Section 408(1)(2)(B).
All other provisions of the Contract to which this Rider is attached remain
unchanged.
SIGNED FOR EQUITABLE LIFE INSURANCE COMPANY OF IOWA:
President
/s/ Xxxxx Xxxxxx
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