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ADDITIONAL DEPOSIT BENEFIT RIDER - ANNUITY
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GENERAL. This rider is a part of your policy. Only certain policy provisions are
a part of this rider. They are "Definitions," "Ownership," "The Contract," and
"Assignment."
BENEFIT. You may make an additional deposit to this policy when it is
surrendered. The deposit less the expense charge will be added to the Cash
Surrender Value. This total will then be paid under the annuity option or method
of payment chosen.
DEPOSIT LIMIT. The deposit may not exceed 4 times the Policy Accumulation Value.
EXPENSE CHARGE. The expense charge is 3% of the deposit plus the lesser of 2% of
the deposit or $100.
EFFECTIVE DATE OF THIS RIDER. This is the policy date.
STATE FARM LIFE AND ACCIDENT ASSURANCE COMPANY
/s/ Xxxxxx X Xxxx Xx.
President
/s/ Xxxxx X Xxxxxxxx
Secretary
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INDIVIDUAL RETIREMENT ANNUITY ENDORSEMENT
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The Internal Revenue Code (the Code) requires certain restrictions on policy
provisions to make this policy an Individual Retirement Annuity. This
endorsement controls if its wording conflicts with policy wording. Changes in
the Internal Revenue Code, regulations, and Revenue Rulings may require changes
to be made to this endorsement. Any such changes will be sent to you. This
policy is established for the exclusive benefit of you and your beneficiaries.
You will receive annual calendar-year reports as required by the Code.
PREMIUM PROVISIONS. Except in the case of a rollover contribution (as permitted
by section 402(c), 403(a)(4), 403(b)(8), or 408(d)(3) of the Code), or a
contribution to a Simplified Employee Pension Program as described in section
408(k) of the Code, the total premiums paid for any taxable year may not exceed
$2,000 and must be in cash. No contribution will be accepted under a SIMPLE plan
established by any employer pursuant to section 408(p) of the Code. No transfer
or rollover of funds attributable to contributions made by a particular employer
under its SIMPLE plan will be accepted from a SIMPLE IRA, that is, an IRA used
in conjunction with a SIMPLE plan, prior to the expiration of the 2-year period
beginning on the date the individual first participated in that employer's
SIMPLE plan.
OWNER. The Annuitant is the Owner. Ownership cannot be changed or forfeited. An
irrevocable beneficiary may not be named.
NOT TRANSFERABLE. You cannot transfer ownership of this policy or assign, sell,
or pledge any interest in it.
REQUIRED DISTRIBUTION RULES:
ARTICLE I
Notwithstanding any provision of this agreement to the contrary, the
distribution of an individual's interest shall be made in accordance with
minimum distribution requirements of section 401(a)(9) of the Code, including
the incidental death benefit provisions of section 401(a)(9)(G) of the Code, and
the regulations thereunder, including the minimum distribution incidental
benefit requirement of section 1.401(a)(9)-2 of the Proposed Income Tax
Regulations. Payments must be made periodically in intervals no longer than one
year. In addition, payments must be either nonincreasing or they may increase
only as provided in Q&A F-3 of section 1.401(a)(9)-1 of the proposed
regulations.
ARTICLE II
The Owner's entire interest in the policy must be distributed, or begin to be
distributed, by the Owner's required beginning date, which is April 1 following
the calendar year in which the Owner reaches age 70 1/2. For each succeeding
year, a distribution must be made on or before December 31. By the required
beginning date, the Owner may elect to have the balance in the policy
distributed in one of the following forms:
(a) a single sum payment;
(b) equal or substantially equal payments over the life of the Owner;
(c) equal or substantially equal payments over the lives of the Owner and
his or her designated beneficiary;
(d) equal or substantially equal payments over a specified period that may
not be longer than the Owner's life expectancy;
(e) equal or substantially equal payments over a specified period that may
not be longer than the joint life and last survivor expectancy of the Owner and
his or her designated beneficiary.
ARTICLE III
If the Owner dies before his or her entire interest is distributed, the entire
remaining interest will be distributed as follows:
(a) If the Owner dies on or after distributions have begun under Article II
above, the entire remaining interest must be distributed at least as rapidly as
provided under Article II.
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INDIVIDUAL RETIREMENT ANNUITY ENDORSEMENT (CONTINUED)
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REQUIRED DISTRIBUTION RULES (CONTINUED)
ARTICLE III (CONTINUED)
(b) If the Owner dies before distributions have begun under Article II
above, the entire remaining interest must be distributed as elected by the Owner
or, if the Owner has not so elected, as elected by the beneficiary or
beneficiaries, as follows:
(1) by December 31st of the year containing the fifth anniversary of the
Owner's death; or
(2) in equal or substantially equal payments over the life expectancy of
the designated beneficiary or beneficiaries starting by December 31st of the
year following the year of the Owner's death. If, however, the beneficiary is
the Owner's surviving spouse, then this distribution is not required to begin
before the later of December 31st of the calendar year immediately following the
calendar year of the Owner's death, or December 31st of the calendar year in
which the Owner would have attained age 70 1/2.
Distributions under this article are considered to have begun if distributions
are made on account of the Owner reaching his or her required beginning date or,
if prior to the required beginning date, distributions irrevocably commence to
the Owner over a period permitted and in an annuity form acceptable under
section 1.401(a)(9) of the proposed regulations.
ARTICLE IV
(a) Unless otherwise elected by the Owner prior to the commencement of
distributions under Article II above or, if applicable, by the surviving spouse
where the Owner dies before distributions have commenced, life expectancies of
an Owner or spouse beneficiary shall be recalculated annually for purposes of
distributions under Article II and Article III above. (Life expectancy is
computed by use of the expected return multiples in Table V and VI of section
1.72-9 of the Income Tax Regulations.)
(b) An election not to recalculate shall be irrevocable and shall apply to all
subsequent years. The life expectancy of a nonspouse beneficiary shall not be
recalculated. Under this approach, life expectancy will be calculated using the
attained age of an individual during the calendar year in which the Owner
attains age 70 1/2. Payments for the subsequent years 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.
ARTICLE V
An individual may satisfy the minimum distribution requirements under sections
408(a)(6) and 409(b)(3) of the Code by receiving a distribution from one IRA
that is equal to the amount required to satisfy the minimum distribution
requirements for two or more IRAs. For this purpose, the Owner of two or more
IRAs may use the 'alternate method' described in Notice 88-38, 1988-1 C.B. 524,
to satisfy the minimum distribution requirements described above.
EFFECTIVE DATE OF THIS ENDORSEMENT. This is the policy date.
STATE FARM LIFE AND ACCIDENT ASSURANCE COMPANY
/s/ Xxxxxx X Xxxx Xx.
President
/s/ Xxxxx X Xxxxxxxx
Secretary
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ENDORSEMENTS
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This policy is amended by deleting the Change of Owner/Successor Owner provision
and replacing it with the following:
CHANGE OF OWNER/SUCCESSOR OWNER. You may change the Owner or Successor Owner to
another natural person by sending us a request while the Annuitant is alive. We
have the right to request this policy to make the change on it. The change will
take effect the date you sign the request, but the change will not affect any
action we have taken before we receive the request. A change of owner or
successor owner does not change the beneficiary designation. No more than two
owners and/or successor owners can be named.
EFFECTIVE DATE OF THIS ENDORSEMENT. This is the policy date shown on page 3 of
this policy.
STATE FARM LIFE AND ACCIDENT ASSURANCE COMPANY
/s/ Xxxxxx X Xxxx Xx.
President
/s/ Xxxxx X Xxxxxxxx
Secretary
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TAX-SHELTERED ANNUITY ENDORSEMENT
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PURPOSE. To conform this policy to the tax-sheltered annuity requirements of
Internal Revenue Code (the "Code") Section 403(b), any other relevant Code
Sections, and applicable Internal Revenue Service regulations and rulings. If
terms in this Endorsement are inconsistent with terms in the policy, the terms
in the Endorsement shall prevail. Changes in the Internal Revenue Code,
regulations, and Revenue Rulings may require changes to be made to this
endorsement. Any such changes will be sent to you.
RESTRICTION ON BENEFIT PAYMENTS. Payment of benefits, which are attributable
to premiums paid pursuant to a salary reduction agreement as defined in Code
Section 402(g)(3)(C), may not be made unless the employee/annuitant has:
become disabled as defined in Code Section 72(m)(7), an employee/annuitant
shall be considered to be disabled if such employee/annuitant is unable to
engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in
death or to be of long-continued and indefinite duration, attained age 59 1/2,
separated from service with the employer, died, or incurred a hardship.
(No distribution of any income attributable to such contributions may be made
in the case of a distribution on account of hardship.) This restriction on
benefit payments applies only to payments which are attributable to policy
proceeds other than those in existence on December 31, 1988.
REQUIRED DISTRIBUTION RULES:
ARTICLE I
Notwithstanding any provision of this agreement to the contrary, the
distribution of an employee/annuitant's interest shall be made in accordance
with the minimum distribution requirements of section 403(b)(10) and 401(a)(9)
of the Code, including the incidental death benefit provisions of section
401(a)(9)(G) of the Code, and the regulations thereunder, including the minimum
distribution incidental benefit requirements of section 1.401(a)(9)-2 of the
Proposed Income Tax Regulations. Payments must be made periodically in intervals
no longer than one year. In addition, payments must be either nonincreasing or
they may increase only as provided in Q&A F-3 of section 1.401(a)(9)-1 of the
proposed regulations.
ARTICLE II
The employee/annuitant's entire interest in the policy must be distributed, or
begin to be distributed, by the employee/annuitant's required beginning date,
which is April 1 following the calendar year in which occurs the later of the
employee/annuitant's: (1) attainment of age 70 1/2 or (2) retirement. (For an
employee/annuitant who is a 5-percent owner (as defined in Code Section 416) in
the year of attainment of age 70 1/2, (2) in the preceding sentence shall not
apply.) For each succeeding year, a distribution must be made on or before
December 31. By the required beginning date, the employee/annuitant may elect to
have the balance in the policy distributed in one of the following forms:
(a) a single sum payment;
(b) equal or substantially equal payments over the life of the
employee/annuitant;
(c) equal or substantially equal payments over the lives of the
employee/annuitant and his or her designated beneficiary;
(d) equal or substantially equal payments over a specified period that may not
be longer than the employee/annuitant's life expectancy;
(e) equal or substantially equal payments over a specified period that may not
be longer than the joint life and last survivor expectancy of the employee/
annuitant and his or her designated beneficiary.
ARTICLE III
If the employee/annuitant dies before his or her entire interest is distributed,
the entire remaining interest will be distributed as follows:
(a) If the employee/annuitant dies on or after distributions have begun, the
entire remaining interest must be distributed at least as rapidly as under the
method of distribution in effect at the time of death of the employee/annuitant.
(b) If the employee/annuitant dies before distributions have begun under Article
II above, the entire remaining interest must be distributed as elected by the
employee/annuitant or, if the employee/annuitant has not so elected, as elected
by the beneficiary or beneficiaries, as follows:
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TAX-SHELTERED ANNUITY ENDORSEMENT (CONTINUED)
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REQUIRED DISTRIBUTION RULES (CONTINUED)
ARTICLE III (CONTINUED)
(1) by December 31st of the year containing the fifth anniversary of the
employee/annuitant's death; or
(2) in equal or substantially equal payments over the life expectancy of the
designated beneficiary or beneficiaries starting by December 31st of the year
following the year of the employee/annuitant's death. If, however, the
beneficiary is the employee/annuitant's surviving spouse, then this distribution
is not required to begin before the later of December 31st of the calendar year
immediately following the calendar year of the employee/annuitant's death, or
December 31st of the calendar year in which the employee/annuitant would have
attained age 70 1/2.
Distributions under this article are considered to have begun if distributions
are made on account of the employee/annuitant reaching his or her required
beginning date or, if prior to the required beginning date, distributions
irrevocably commence to the employee/annuitant over a period permitted and in an
annuity form acceptable under section 1.401(a)(9) of the proposed regulations.
ARTICLE IV
(a) Unless otherwise elected by the employee/annuitant prior to
the commencement of distributions under Article II above or, if applicable,
by the surviving spouse where the employee/annuitant dies before
distributions have commenced, life expectancies of an employee/annuitant or
spouse beneficiary shall be recalculated annually for purposes of
distributions under Article II and Article III above. (Life expectancy is
computed by use of the expected return multiples in Table V and VI of section
1.72-9 of the Income Tax Regulations.)
(b) An election not to recalculate shall be irrevocable and shall apply to all
subsequent years. The life expectancy of a nonspouse beneficiary shall not be
recalculated. Under this approach, life expectancy will be calculated using the
attained age of an individual during the calendar year in which the
employee/annuitant attains age 70 1/2. Payments for the subsequent years 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.
ARTICLE V
An employee/annuitant may satisfy the minimum distribution requirements under
sections 403(b)(10) and 401(a)(9) of the Code by receiving a distribution from
one Tax-Sheltered Annuity that is equal to the amount required to satisfy the
minimum distribution requirements for two or more Tax-Sheltered Annuities.
DIRECT ROLLOVER OF DISTRIBUTIONS:
(a) This section applies to distributions made on or after January 1, 1993.
Notwithstanding any provision of this agreement to the contrary that would
otherwise limit a distributee's election under this section, a distributee may
elect, at the time and in the manner prescribed, to have any portion of an
eligible rollover distribution paid directly to an eligible retirement plan
specified by the distributee in a direct rollover.
(b) Definitions:
(1) Eligible Rollover Distribution: An eligible rollover distribution is any
distribution of all or any portion of the balance to the credit of the
distributee, except that an eligible rollover distribution does not include: any
distribution that is one of a series of substantially equal periodic payments
(not less frequently than annually) made for the life (or life expectancy) of
the distributee or the joint lives (or joint life expectancies) of the
distributee and the distributee's designated beneficiary, or for a specified
period of ten years or more; any distribution to the extent such distribution is
required under sections 403(b)(10) and 401(a)(9) of the Code, and the portion of
any distribution that is not includible in gross income (determined without
regard to the exclusion for net unrealized appreciation with respect to employer
securities).
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TAX-SHELTERED ANNUITY ENDORSEMENT (CONTINUED)
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DIRECT ROLLOVER DISTRIBUTIONS (CONTINUED)
(2) Eligible Retirement Plan: An eligible retirement plan is an individual
retirement account described in section 408(a) of the Code, an individual
retirement annuity described in section 408(b) of the Code, or an annuity
contract described in section 403(b) of the Code which accepts the distributee's
eligible rollover distribution. However, in the case of an eligible rollover
distribution to the surviving spouse, an eligible retirement plan is an
individual retirement account or individual retirement annuity.
(3) Distributee: A distributee includes an employee or former employee. In
addition, the employee's or former employee's surviving spouse and the
employee's or former employee's spouse or former spouse who is the alternate
payee under a qualified domestic relations order, as defined in section 414(p)
of the Code, are distributees with regard to the interest of the spouse or
former spouse.
(4) Direct Rollover: A direct rollover is a payment by this plan to the
eligible retirement plan specified by the distributee.
(c) If a distribution is one to which sections 401(a)(11)
and 417 of the Code do not apply, such distribution may commence less than 30
days after the notice required under section 1.411(a)-11(c) of the Income Tax
Regulations is given, provided that:
(1) the distributee is clearly informed that the distributee has a right to
a period of at least 30 days not to elect a distribution (and, if applicable, a
particular distribution option), and
(2) the distributee, after receiving the notice, affirmatively elects a
distribution.
NOT TRANSFERABLE. This policy may not be sold, assigned or pledged to anyone
other than us.
NONFORFEITABLE. The interest of the employee/annuitant is nonforfeitable. This
policy is for the exclusive benefit of the employee/annuitant and his or her
beneficiary.
LIMITS ON CONTRIBUTIONS:
(a) Contributions to this policy shall not exceed the annual contribution
limitations of section 415 of the Code or the maximum exclusion allowance
prescribed by section 403(b) of the Code.
(b) Contributions made by elective deferral shall be limited to the annual
elective deferral limits provided under section 402(g) of the Code.
EFFECTIVE DATE OF THIS ENDORSEMENT. This is effective on the later of January 1,
1989, or the policy date.
STATE FARM LIFE AND ACCIDENT ASSURANCE COMPANY
/s/ Xxxxxx X Xxxx Xx.
President
/s/ Xxxxx X Xxxxxxxx
Secretary
