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EXHIBIT 4(b)(v)
[SAGE LIFE ASSURANCE OF AMERICA, INC. LOGO]
MEMBER OF SAGE INSURANCE GROUP
XXXX INDIVIDUAL RETIREMENT ANNUITY RIDER
GENERAL
This Rider is made part of the Contract to which it is attached. The Contract as
amended is intended to qualify as a Xxxx individual retirement annuity under
Section 408A of the Internal Revenue Code of 1986, as amended (the "Code").
APPLICABLE PROVISIONS
The following provisions apply and replace any contrary provisions of the
Contract:
1. You shall be the Owner. Any provision of the Contract that would
allow joint ownership, or that would allow more than one person to
share distributions, is deleted.
2. The Contract is not transferable or assignable (other than pursuant
to a divorce decree in accordance with applicable law) and is
established for the exclusive benefit of you and your Beneficiaries.
It may not be sold, assigned, alienated, or pledged as collateral
for a loan or as security.
3. Your entire interest in the Contract shall be nonforfeitable.
4. Premium payments shall be in cash. The following premium payments
shall be accepted under this Contract:
a. Qualified rollover contributions from another Xxxx XXX or
individual retirement account or annuity in accordance with
Code Sections 408(d)(3), 408A(c)(3)(B), 408A(c)(6) and
408A(e);
b. Xxxxxxx transferred from another Xxxx XXX or individual
retirement account or annuity;
c. Other premium payments in an amount not in excess of $2,000
for any year.
The $2,000 limit is gradually reduced to $0 between certain levels
of adjusted gross income ("AGI"). In accordance with Code Section
408A(c)(3), if you are single, the $2,000 limit is phased out
between AGI of $95,000 and $110.000; if you are married and file a
joint federal income tax return, it is phased out between $150,000
and $160,000; and if you are married and file a separate federal
income tax return, it is phased out between $0 and $10,000. Also, a
rollover or transfer from an individual retirement account or
annuity will not be permitted if your AGI for the tax year exceeds
$100,000 or if you are married and file a separate federal income
tax return. Adjusted gross income is defined in Code Section
408A(c)(3) and does not include amounts transferred or rolled over
to individual retirement annuities or accounts or Xxxx IRAs.
You shall have the sole responsibility for determining whether any
premium payment meets applicable income tax requirements.
5. This Contract does not require fixed premium payments. Any refund of
premiums (other than those attributable to excess contributions)
will be applied before the close of the calendar year following the
year of the refund toward the payment of additional premiums or the
purchase of additional benefits.
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6. Your entire interest in the Contract must be distributed no later
than December 31 of the calendar year in which the fifth anniversary
of your death occurs. However, proceeds which are payable to a named
beneficiary who is a natural person may be distributed in
substantially equal installments over the lifetime of the
beneficiary or a period certain not exceeding the life expectancy of
the beneficiary provided such distribution begins not later than
December 31 of the calendar year in which the first anniversary of
your death occurs. If the beneficiary is your surviving spouse, the
surviving spouse may elect not later than December 31 of the
calendar year in which the fifth anniversary of your death occurs to
receive equal or substantially equal payments over the life or life
expectancy of the surviving spouse commencing at any date prior to
the date on which you would have attained age 70 1/2. Minimum
payments will be calculated in accordance with Code Sections
408(b)(3) and 408A(c)(5) and the regulations thereunder.
For the purposes of this requirement, any amount paid to any of your
children will be treated as if it had been paid to your surviving
spouse if the remainder of the interest becomes payable to the
surviving spouse when the child reaches the age of majority.
If the beneficiary is your surviving spouse, the spouse may treat
the Contract as the spouse's own Xxxx XXX. This election will be
deemed to have been made if the surviving spouse makes a regular
Xxxx XXX contribution to the Contract, makes a rollover to or from
the Contract, or fails to elect any of the above distribution
options.
No additional premiums will be accepted under this Contract after
your death unless the beneficiary is your surviving spouse.
Your beneficiary shall have the sole responsibility for requesting a
distribution that complies with this Rider and applicable law.
7. For purposes of the foregoing provision, life expectancy shall be
determined by use of the expected return multiples in Table V of
Treasury Regulation Section 1.72-9 in accordance with Code Sections
408(b)(3) and 408A(c)(5) and the regulations thereunder. Life
expectancy will be initially determined on the basis of your
beneficiary's attained age in the year distributions are required to
commence. Unless your spouse elects otherwise prior to the date
distributions are required to commence, your spouse's life
expectancy will be recalculated annually based on your spouse's
attained age in the year for which the distribution is being
determined. The life expectancy of a nonspouse beneficiary will not
be recalculated.
MODIFICATIONS
We reserve the right to amend the Contract or this Rider to the extent
necessary to qualify as a Xxxx individual retirement annuity for federal
income tax purposes.
CHARGE FOR THIS RIDER
There is no charge for this Rider.
EFFECTIVE DATE
This Rider is effective as of the Contract Date.
TERMINATION
This Rider will terminate on the date of the first to occur of the following
events:
1. The Contract is surrendered.
2. The entire interest in the Contract has been distributed.
3. You request the termination of this Rider.
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TERMS AND CONDITIONS
All of the terms used in this Rider have the same meanings as in the Contract
unless otherwise clearly indicated in this Rider. This Rider is subject to all
the exclusions, definitions and provisions of the Contract which are not
inconsistent with the terms of this Rider.
[SIG]
Chairman
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