"XXXX XXX ENDORSEMENT"
ENDORSEMENT APPLICABLE TO XXXX XXX CONTRACTS
As specified in the Data pages, this Contract is a "Xxxx XXX Contract" which is
issued as an individual retirement annuity contract which meets the requirements
of Sections 408A and 408(b) of the Code. If the Owner of the Contract is a trust
or custodian under Section 408 of the Code and pertinent Regulations, this
Contract is an annuity contract which may be used to fund an individual
retirement account which meets the requirements of Section 408(a) of the Code.
It is established for the exclusive benefit of you and your beneficiaries, and
the terms below change, or are added to, the applicable provisions of this
Contract. Also, your entire interest under the Contract is not forfeitable.
I. DEFINITIONS
The following apply in addition to or in lieu of corresponding definitions
in the Contract.
ANNUITANT. You must be both the Annuitant and the Owner (see "Owner"
below).
ANNUITY COMMENCEMENT DATE. You may not choose an Annuity Commencement Date
later than our maximum maturity age (currently age 90, unless a different
age is required by State law), and any period certain you select must
conform to IRS life expectancy tables in Treas. Reg. Section 1.72-9.
CODE. When used in this Endorsement references to the Code include
references to applicable tax Regulations.
CONTRIBUTIONS. Contributions are subject to the limits of Section 408A of
the Code.
OWNER. The Annuitant is the Owner of the Contract and cannot be changed.
Where the contract is purchased to fund an individual retirement account
under Section 408(a) of the Code, the Owner must be a trustee or custodian
meeting the requirements of that Section and pertinent Regulations.
II. LIMITS ON CONTRIBUTIONS
No Contributions will be accepted unless they are in United States cash
(including checks). We reserve the right to accept electronic cash which
meets our specifications.
Except in the case of a rollover or direct transfer Contribution discussed
below which meets the requirements of Section 408A of the Code, the total
of your Contributions will not exceed the maximum total under Section
408A(c)(2) of the Code for any taxable year.
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A "rollover contribution" is one permitted by Section 408A(e) and 408(d)(3)
of the Code.
Xxxx XXX to Xxxx XXX Rollover Contributions. You may make a qualified
rollover contribution as permitted by Sections 408A(e) and 408(d) of the
Code from another Xxxx XXX. There are no limits on the amount rolled over;
however, you may be required to designate the taxable year in which you
converted any non-Xxxx XXX funds into Xxxx XXX funds.
Direct Transfer Contributions. You may make a Contribution of a direct
transfer of funds from another Xxxx XXX under Section 408A of the Code.
There are no limits on the amount transferred; however, you may be required
to designate the taxable year in which you converted any non-Xxxx XXX funds
into Xxxx XXX funds.
Non-Xxxx XXX to Xxxx XXX Rollover Contributions ("Conversion
Contributions"). If you meet the modified adjusted gross income limits
specified in Section 408A, you may make a qualified rollover contribution
as permitted by Section 408A(c)(3)(B) of the Code and Sections 408A(e) and
408(d)(3) of the Code from another individual retirement plan under Section
408 of the Code which is not a Xxxx XXX. There are no limits on the amounts
rolled over. We reserve the right to require you to designate the year to
which such a conversion of non-Xxxx XXX funds into Xxxx XXX funds applies.
Rollovers are not permitted from SEP-IRAs under Section 408(k) of the Code
or SIMPLE IRAs under Section 408(p) of the Code.
If we determine that any Contributions would cause this Contract not to
qualify under Sections 408A or 408(b) of the Code, we reserve the right to
either (i) refuse to accept any such Contributions or (ii) apply such
Contributions to a nonqualified deferred annuity contract or Contract for
the exclusive benefit of you and your beneficiaries.
III. DEATH BENEFITS
Under the following circumstances, the death benefit described in this
Contract will not be paid at your death before the Annuity Commencement
Date, and the coverage under the Contract will continue with your surviving
spouse as Successor Owner and Annuitant.
1. You are married at your death.
2. The person named as death beneficiary is your surviving spouse.
3. You or your spouse at your death have additionally requested, in
accordance with our procedures then in effect, that your spouse become
"Successor Owner and Annuitant" of your Contract if your spouse
survives you.
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If the Owner and the Annuitant are different because the Owner of the
Contract is a trustee or custodian under Section 408 of the Code and
pertinent Regulations, (i) in this item of the Endorsement, "you" refers to
the Annuitant and (ii) your spouse can become Successor Annuitant.
MINIMUM DISTRIBUTION RULES - DEATH BENEFIT. This Contract is subject to
these "Required Payment" or "Minimum Distribution" rules of Section 408(b)
and 401(a)(9) of the Code and the Treasury Regulations which apply.
If you die after distribution of your interest in this Contract has begun,
the remaining portion of such interest will continue to be distributed at
least as rapidly as under the method of distribution being used prior to
your death.
If you die after distribution of your interest in this Contract begins,
distribution of your entire interest shall be completed no later than
December 31 of the calendar year containing the fifth anniversary of your
death, except to the extent that an election is made to receive death
benefit distributions in accordance with (1) or (2) below:
(1) If your interest is payable to a designated beneficiary, then
your entire interest may be distributed over the life of, or
over a period certain not greater than the life expectancy of,
the designated beneficiary. Such distributions must commence on
or before December 31 of the calendar year immediately following
the calendar year of your death.
(2) If the designated beneficiary is your surviving spouse, the date
that distributions are required to begin in accordance with (1)
above shall not be earlier than the later of (a) December 31 of
the calendar year immediately following the calendar year of
your death or (b) December 31 of the calendar year in which you
would have attained age 70 1/2.
If the designated beneficiary is your surviving spouse, and a Successor
Annuitant and Owner option (described above in this Endorsement under DEATH
BENEFITS) is in effect, the distribution of your interest need not be made
until after your spouse's death.
For purposes of determining the "period certain" referred to above, life
expectancy is computed by use of the expected return multiples in Tables V
and VI of Treasury Regulation Section 1.72-9. For purposes of distributions
beginning after your death, unless otherwise elected by the surviving
spouse by the time distributions are required to begin, life expectancies
shall be recalculated annually. Such election shall be irrevocable by the
surviving spouse and shall apply to all subsequent years. In the case of
any other designated beneficiary, life expectancies shall be calculated
using the attained age of such beneficiary during the calendar year in
which distributions are required to begin, pursuant to this Item, and
payments for any subsequent calendar year shall be calculated based on such
life expectancy reduced by one for each calendar year which has elapsed
since the calendar year life expectancy was first calculated.
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Distributions under this Item are considered to have begun if distributions
irrevocably commence to you over a period permitted and in any annuity form
acceptable under Section 1.40(a)(9)-1 of the Proposed Treasury Regulations
or any successor Regulation thereto.
IV. ANNUITY BENEFITS
This Contract will begin to pay out as an Annuity for your life on the
Annuity Commencement Date you select on the application unless you indicate
to us another form of payment before such payments commence. If you or your
beneficiary (as described in Item III above) selects a period certain form
of payment, no period certain can be longer than applicable life expectancy
under IRS tables in Treasury Regulations Section 1.72-9.
V. GENERAL PROVISIONS
TERMINATION OF CONTRACT
If this Contract fails to qualify as a Xxxx individual retirement annuity
under Sections 408(b) and 408A of the Code, we will have the right to
terminate the Contract. We may do so, upon receipt of notice of such fact,
before the Annuity Commencement Date. In that case, we have the right to
pay the Annuity Account Value less a deduction for the part which applies
to any Federal income tax payable by you which would not have been payable
with respect to a Xxxx individual retirement annuity which meets the terms
of Sections 408A and 408(b) of the Code.
REPORTS AND NOTICES
We will send you a report as of the end of each calendar year showing the
status of the Contract and any other reports required by the Code.
ASSIGNMENTS, NONTRANSFERABILITY, NONFORFEITABILITY.
Your rights under this Contract may not be assigned, pledged or transferred
except as permitted by law. A new Owner may not be named, except as
described in the Preamble and item 1 or item 4 of this Endorsement.
EQUITABLE OF COLORADO, INC.
/s/ Xxxxxx X. Xxxxxxxxxx /s/ Xxxxx X. Xxxxxxx
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Xxxxxx X. Xxxxxxxxxx, Xxxxx Xxxxxxx, Secretary
President and Chief Executive Officer
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