RELIASTAR
LIFE INSURANCE COMPANY SIMPLE INDIVIDUAL
OF NEW YORK RETIREMENT
ANNUITY RIDER
A stock company
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This Contract is issued as a Simple Retirement Account intended to qualify as
such under Section 408(p) of the Internal Revenue Code, as amended (the "Code").
This Contract is established for the exclusive benefit of the Owner and the
beneficiaries named. The Contract has been applied for with the written consent
of the Owner (employee) on the application for this contract.
In the event of any conflict between the provision of this Rider and the
Contract to which it is attached, the provisions of this Rider will control.
ReliaStar Life Insurance Company of New York ("ReliaStar" or "the Company")
reserves the right to amend the Contract and Rider as necessary to comply with
applicable tax requirements. 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.
CONTRIBUTIONS
The premiums applicable to the Contract will be applied to accumulate a
retirement savings fund for the Owner. The only contributions allowed under the
Contract will be those made in accordance with a Qualified Salary Reduction
Arrangement as described in Section 408(p) of the Code.
Any refund of premiums (other than those attributable to the excess
contributions) will be applied before the close of the calendar year following
the year of the refund towards the payment of future premiums or the purchase of
additional benefits.
The Qualified Salary Reduction Arrangement pursuant to which contributions are
to be made to this Contract will provide that all employees of the employer who
received at least $5,000 in compensation from the employer during any two
calendar years prior to the applicable year for which contributions are to be
made to this Contract, and are reasonably expected to receive at least $5,000 in
compensation during the applicable year for accounts established for them,
subject to the ability of the employer to exclude from eligibility requirements
certain union employees and non-resident aliens as provided in Section 410(b)(3)
of the Code.
The Qualified Salary Reduction Arrangement pursuant to which contributions are
to be made to this Contract will provide that the employer must make the
contributions attributable to salary reduction agreements not later than the
close of the 30-day period following the last day of the month with respect to
which the contributions are to be made, and will make the employer-matching
contributions or the employer- nonelective contributions not later than the date
described in Section 404(m)(2)(B) of the Code. The Qualified Salary Reduction
Arrangement will further provide that the employee may elect to terminate
participation in such arrangement at any time during the year, and that each
employee eligible to participate may elect, during the 60-day period before the
beginning of any year (and the 60-day period before the first day such employee
is eligible to participate) to participate in the arrangement, or to modify the
amounts subject to such arrangement, for such year.
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NONFORFEITABILITY AND NONTRANSFERABILITY
The Owner's Simple Retirement Account will be 100% nonforfeitable at all times
and will be maintained for the exclusive benefit of the Owner and the
beneficiaries named. This Simple Retirement Account may not be attached or
alienated except where permitted by law.
The Owner may not transfer ownership of any part or all of this Simple
Retirement Account at any time, or pledge any part of it or use any part of it
as collateral.
MINIMUM DISTRIBUTION RULES
(a) Required minimum annual distributions must commence to the Owner no
later than April 1st of the calendar year following the calendar year in
which the Owner attains age 70 1/2. The method of distribution elected
must insure that the entire interest of the Owner must be distributed by
that date. Alternatively, the distribution method elected must commence
by that date and provide that the Owner's entire interest be distributed
over a period not to exceed:
(i) the life expectancy of the Owner or the joint and last survivor
expectancy of the Owner and the designated beneficiaries; or,
(ii) a period certain not in excess of the life expectancy of the Owner
or the joint and last survivor expectancy of the Owner and the
designated beneficiaries.
All distributions made hereunder will be made in accordance with the
requirements of section 401(a)(9) of the Code, including the incidental
death benefit requirements 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 Income Tax
Regulations.
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 Income Tax
Regulations.
(b) All payments are to be made in equal annual installments, except where a
cashout accelerates payment. There is no account balance, which would
vary from year to year, as in a 408(a) IRA.
(c) Life expectancy is computed by use of the expected return multiples in
Tables V and VI of section 1.72-9 of the Income Tax Regulations. Unless
otherwise elected by the individual by the time distributions are
required to begin, life expectancies will be recalculated annually. Such
election will be irrevocable by the individual and will apply to all
subsequent years. The life expectancy of non-spouse beneficiary may not
be recalculated. Instead, life expectancy will be calculated using the
attained age of such beneficiary during the calendar year in which the
beneficiary attains age 70 1/2, and payments for subsequent years will
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.
(d) In the event the Owner dies before distribution of his or her interest
commences under this Simple Retirement Account, 100% of the balance will
be distributed to the beneficiaries named. Distribution will be
completed no later than the last day of the calendar year in which the
fifth anniversary of the Owner's death occurs. If the individual's
interest is payable to a designated beneficiary, then the entire
interest of the individual may be distributed over the life or over a
period certain not greater than the life expectancy of the designated
beneficiary commencing on or before December 31 of the calendar year
immediately following the calendar year in which the individual died.
The designated beneficiary may elect at any time to receive greater
payments.
(e) In the event the Owner dies after the commencement of benefits to him
under this Simple Retirement Account, distribution of the remaining
benefits will be made to the beneficiaries named in a method at least as
rapid as that in effect as of the date of the Owner's death.
Commencement of distributions under this section to the beneficiaries
must be not later than the last day of the calendar year in which occurs
the first anniversary of the Owner's death.
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(f) The provisions of (d) and (e) will not apply were the beneficiary is the
Owner's surviving spouse. The surviving spouse may elect to delay
commencement of required distributions until the December 31st of the
calendar year in which the deceased Owner would have attained age 70 1/2.
Alternatively, the surviving spouse may elect to rollover the entire
balance of the deceased Owner's Simple Retirement Account to the
surviving Spouse's Individual Retirement Account
Life expectancy is computed by use of the expected return multiples in
Tables V and VI of section 1.72-9 of the Income Tax Regulations. For
purposes of distributions beginning after the individual's death, unless
otherwise elected by the surviving spouse by the time distributions are
required to begin, life expectancies will be recalculated annually.
Such election will be irrevocable by the surviving spouse and will apply
to all subsequent years. In the case of any other designated beneficiary,
life expectancies will be calculated using the attained age of such
beneficiary during the calendar year in which distributions are required
to begin pursuant to this section, and payments for any subsequent
calendar year will 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.
Distributions under this section are considered to have begun if
distributions are made on account of the individual reaching his or her
required beginning date or if prior to the required beginning date
distributions irrevocably commence to an individual over a period
permitted and in an annuity form acceptable under section 1.401(a) (9) of
the Regulations.
(g) The designated beneficiary may elect to receive greater payments than
those required under this section. If there is more than one beneficiary,
the designated beneficiary will be that person with the shortest life
expectancy for the purposes of determining the distribution period.
(h) For purposes of this Section, any amounts paid to a minor child of the
Owner will be treated as having been paid to the surviving spouse if the
remainder of the Simple Retirement Account is payable to the surviving
spouse when the child attains the age of majority.
REPORTS
The issuer of a simple retirement account will furnish annual calendar
year reports concerning the status of the account.
President /S/ Xxxxx Xxxxxxxx Secretary /S/ Xxxxx Xxxxxxx-Xxxxxxx
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Variable Products
Customer Service Center
0000 Xxxxxxxx Xxxxx
Xxxx Xxxxxxx, XX 00000
0-000-000-0000
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