Zurich Life Insurance Company of New York
New York, New York
AMENDMENT TO CONTRACT TO QUALIFY A XXXX INDIVIDUAL RETIREMENT ANNUITY ("XXXX
XXX") UNDER SECTION 408A OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED
("CODE")
This Amendment is made a part of this annuity contract. It is issued by Zurich
Life Insurance Company of New York (we, us, ours) to qualify the contract as a
Xxxx Individual Retirement Annuity ("Xxxx XXX") under Section 408A of the
Internal Revenue Code of 1986, as amended ("Code"). Notwithstanding any other
specific provisions in the contract to the contrary, the contract is amended to
restrict your rights or the rights of the Annuitant and any beneficiary, and to
limit the contributions, as follows:
1. You may not transfer ownership of the contract, sell the contract, or assign
or pledge the contract as collateral for a loan or as security for the
performance of an obligation or for any other purpose, to any person other than
to us or your former spouse under a divorce decree or under a written instrument
incident to that divorce.
2. The contract is established for the exclusive benefit of you and your
beneficiaries.
3. Your interest in the contract is nonforfeitable.
4. Dividends, if applicable, will not be paid in cash but will be applied as
contributions to the contract.
5. At least once each calendar year, we shall furnish you or your payee a report
concerning the status of the contract.
6. The contract will accept contributions only as follows:
A. Contributions to this contract must be paid in cash and, except in the
case of a trustee-to-trustee transfer from another Xxxx XXX, or in the
case of a qualified rollover contribution, may not exceed the excess
of your contribution limit for the taxable year over the aggregate
contributions made during the taxable year to all other Xxxx IRA's and
IRA's held by you. Contributions may be made without respect to your
age.
The contribution limit for the taxable year is either: (1) the lesser
of the amount in effect for such taxable year under Code Section
219(b)(1)(a) or 100% of your compensation for the taxable year; or (2)
where you file a joint return and receive less compensation for the
taxable year than your spouse, the amount in effect for such taxable
year under Code Section 219(b)(1)(a) or 100% of your compensation and
your spouse's compensation for the taxable year less your spouse's
contribution to a Xxxx XXX or IRA (if any) for the same taxable year.
When your adjusted gross income (AGI) exceeds the applicable dollar
limit (ADL; see description below), the annual contribution limit is
reduced by the following amount:
Annual
Contribution X Your AGI - ADL
Limit $15,000 ($10,000 if you are married)
For purposes of this section: AGI does not include any amount included
in gross income as a result of a rollover of an IRA to a Xxxx XXX; and
AGI is reduced by any deduction under Code Section 219.
The ADL is: $150,000 for you filing a joint return; or $95,000 for you
filing a single return; or $-0 for you as married filing a separate
return.
B. A qualified rollover contribution described in section 408A(e) can be
made only from: (1) another Xxxx XXX; (2) a rollover contribution as
described in Code Section 402A(c)(3); or (3) another IRA, which is not
a Xxxx XXX, and can be made from in IRA other than a Xxxx XXX only if
your AGI for the taxable year of the rollover does not exceed
$100,000.
C. For purposes of this section, compensation means: wages, salaries,
professional fees, or other amounts derived from or received for
personal service actually rendered (including, but not limited to
commissions paid to salespersons, compensation for services on the
basis of a percentage of profits, commissions on insurance premiums,
tips, and bonuses); and includes earned income, as defined in Section
401(c)(2) (reduced by the deduction the self-employed individual takes
for contributions made to a self-employed retirement plan). For
purposes of this definition, Section 401(c)(2) shall be applied as if
the term trade or business for purposes of Section 1402 included
service described in Subsection (c)(6). Compensation does not include
amounts derived from or received as earnings or profits from property
(including, but not limited to interest and dividends) or amounts not
includible in gross income. Compensation also does not include any
amount received as a pension or annuity or as deferred compensation.
The term "compensation" shall include any amount includible in your
gross income under Section 71 with respect to a divorce or separation
instrument described in Subparagraph (A) of Section 71(b)(2).
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7. Your entire interest will be distributed in accordance with one of the
following provisions, as elected:
A. (1) Your entire interest will be paid by December 31 following the
fifth anniversary of your death.
(2) If any portion of your interest is payable to a designated
beneficiary and such beneficiary has not elected 7.A(1) above,
then the entire interest which is payable to the beneficiary will
be distributed in substantially equal installments over a period
not exceeding the life or life expectancy of the designated
beneficiary, commencing by December 31 following the first
anniversary of your death. The designated beneficiary may elect
at any time to receive greater payments if otherwise permitted
under the terms of the contract.
(3) In applying the requirements of 7.A(2) above to any portion of
your interest which is payable to your surviving spouse, the date
on which the payments must commence is the later of: (a) December
31 following the date you would have attained age 70 1/2; or (b)
December 31 following the first anniversary of your death.
(4) If your designated beneficiary is your surviving spouse, your
spouse may treat the contract as your spouse's own Xxxx XXX. This
election will be deemed to have been made: if the surviving
spouse makes a rollover or other contribution into this contract;
or if the surviving spouse has failed to satisfy one or more
requirements described in 7.A(1) or 7.A(2) above. If the
surviving spouse dies before distributions are required to begin
under this section, the surviving spouse will be treated as
having elected to make the Xxxx XXX his or her own Xxxx XXX.
B. For purposes of this section, life expectancy will be computed by
use of the return multiples specified in Tables V or VI of
section 1.72-9 of the Income Tax Regulations based on the
attained age of such beneficiary during the calendar year in
which distributions are required to commence pursuant to this
section. Payments for any subsequent calendar year will be based
on this life expectancy reduced by one for each calendar year
which has elapsed since the calendar year life expectancy was
first calculated. Your designated beneficiary who is your
surviving spouse may elect, prior to the time that payments have
begun to him or her, to redetermine life expectancy each year
based on the beneficiary's attained age in each such year.
8. The contract shall be amended from time to time, if required, to reflect any
changes in the Code, related regulations, or other federal tax requirements.
9. This amendment is effective as of the later of: the date the contract is
issued; or the date the contract is converted from an IRA to a Xxxx XXX.
Signed for the Zurich Life Insurance Company of New York at its home office in
New York, New York.
/s/ Xxxxxxx X. Xxxx /s/ Xxx Xxxxxx
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Secretary President
