Exhibit (6)(iv)
P-624-88
Endorsement: Individual Retirement Annuity
As of the Date of Issue of this Contract, this Endorsement is added to the
Contract. In the event of a conflict between this Endorsement and the Contract,
the provisions of the Endorsement will control.
In order to qualify this contract as an Individual Retirement Annuity under
Section 408(b) of the Internal Revenue Code, (the "Code"), the following
restrictions apply.
1. The Owner of the Contract is the Annuitant; and the Owner of the CANNOT be
changed. The Contract is for the exclusive benefit of the Owner or the
named Beneficiary.
2. Although this Contract in a Flexible Purchase Payment Contract, total
purchase payments for any taxable year CANNOT exceed $2,000, except in the
case of a rollover as permitted by the Code or a purchase payment in
accordance with a Simplified Employee Pension Program as described in
Section 408(k) of the Code. Purchase payments must be in cash.
3. The payment of dividends, if any, will be applied to the purchase of
additional benefits before the end of the calendar year following the
declaration of dividends under this Contract. Any refund of purchase
payments (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 or future purchase payments or the purchase of
additional benefits.
4. The entire interest of the Owner must be distributed to the Owner not later
than the first day of April following the calendar year in which the Owner
attains age 70 1/2; or it must be applied not later than the first day of
April following the calendar year in which the Owner attains age 70 1/2 to
the First, Second, Third or Sixth Payment Option of the Contract for:
(a) The life of the Owner or the lives of the Owner and named Xxxxx; or
(b) A period which is not longer than the life expectancy of the Owner or
the Joint and last survivor expectancy of the Owner and the named
Payee.
Life expectancy and joint and last survivor expectancy are computed by use
of the return multiples contained in section 1.72-9 of the Income Tax
Regulations. For purposes of this computation, the Owner's life expectancy
may be recalculated no more frequently than annually; however, the life
expectancy of a non-spouse Beneficiary may not be recalculated.
In no event will the payments under the Payment Option selected by the
Owner be less than the minimum distribution amount and/or the incidental
benefit amount required under Section 401(a)(9) of the Code as applied to
individual retirement annuities.
5. If the Owner's entire interest is to be distributed in other than a lump
sum, then the amount to be distributed each year (commencing with the
required beginning date and each year thereafter) must be at least an
amount equal to the quotient obtained by dividing the Owner's entire
interest by the life expectancy of the Owner or joint and last survivor
expectancy of the Owner and Beneficiary.
6. If the Owner dies before distribution of his or her interest starts, the
Death Proceeds must be distributed in accordance with one of the following
rules:
(a) The Death Proceeds must be paid within 5 years after the death of the
Owner; or
(b) If the Owner's interest is payable to a Beneficiary designated by the
Owner and the Owner has not elected (a) above, then the entire
interest will be distributed in substantially equal installments over
the life or life expectancy of the Beneficiary commencing no later
than one (1) year after the date of the Owner's death. The
Beneficiary may elect at any time to receive greater payments. If the
Beneficiary is an individual, the Beneficiary can elect any Payment
Option listed in 4 above, with an option Date not later than 1 year
after the death of the Owner; or
(c) If the Beneficiary is the Owner's surviving spouse, the spouse may
elect within the five year period commencing with the Owner's date of
death to receive equal or substantially equal payments over the life
or life expectancy of the surviving spouse a commencing at any date
prior to the date on which the deceased Owner would have attained age
70 1/2. The surviving spouse may accelerate these payments at any
time by increasing the frequency or amount of such payments. If the
Beneficiary is the surviving spouse of the Owner, the Beneficiary:
can elect the Fourth Payment Option for a period which ends prior to
the date on which the Owner would have attained age 70 1/2; and can
elect any Payment Option listed in 4 above, with an Option Date not
later than the date on which the Owner would have attained age 70 1/2.
(d) If the Beneficiary is the surviving spouse of the Owner, the
Beneficiary can treat the Contract as his or her own individual
retirement arrangement by making a rollover from the contract.
-1-
(e) If the surviving spouse of the Owner is not the Beneficiary the
method of distribution selected must assure that at least 50% of the
present value of the amount available for distribution is paid within
the life expectancy of the Owner.
Payments will be calculated by use of the return multiples specified in
section 1.72-9 of the Income Tax Regulations. (Life expectancy of a
surviving spouse may be recalculated annually.) In the case of any other
Beneficiary, life expectancy will be calculated at the time payment first
commences and payments for any period of 12 consecutive months will be
based on such life expectancy minus the number of whole years passed since
distribution first commenced.
Any amount paid to a child of the Owner will be treated as if it had been
paid to the surviving spouse if the remainder of the interest becomes
payable to the surviving spouse when the child reaches the age of majority.
7. It the Owner dies after distribution of his or her interest has commenced,
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
the Owner's death.
8. The entire interest of the Owner is nonforfeitable and nontransferable.
9. The Company will furnish annual calendar year reports concerning the status
of this Contract.
10. In order to continue to qualify this Contract under Section 408(b) of the
Code, the Company can amend this Endorsement to reflect changes in the
provisions of the Code and related regulations by sending an amendment to
the Owner.
New England Mutual Life Insurance Company
000 Xxxxxxxx Xxxxxx, Xxxxxx, Xxxxxxxxxxxxx
President Secretary
-2-
