Aetna Insurance Company of America
ENDORSEMENT
This Contract is endorsed as follows:
The following provisions apply to a Contract which qualifies as an Individual
Retirement Annuity under Internal Revenue Code ("Code") Section 408(b). In the
case of a conflict with any provision in the Contract, the provisions of this
Endorsement control.
1. The Certificate Holder and the Annuitant must be the same person. Joint
Certificate Holders are not permitted.
2. The Certificate Holder's Account and the Certificate Holder's rights
under the Contract are not transferable. The Certificate Holder may not
sell, assign, transfer, pledge or use as collateral for a loan or as
security for the performance of an obligation or for any other purpose,
his or her interest in the Contract to any person other than the issuer
of the Contract.
3. The Certificate Holder's entire interest in the Contract is
nonforfeitable.
4. The Certificate Holder's Account is established for the exclusive
benefit of the Certificate Holder or his or her Beneficiary(ies).
5. All contributions must be in cash. Except in the case of a rollover
contribution as permitted by Code Section 402(c), 403(a) (4), 403 (b)
(8), or 408(d) (3) or a contribution made in accordance with the terms
of a Simplified Employee Pension (SEP) as described in Code Section
408(k), the total contributions shall not exceed $2,000 for any taxable
year.
6. The entire interest of the Certificate Holder will be distributed, or
begin to be distributed, no later than the first day of April following
the calendar year in which the Certificate Holder attains age 70-1/2
(required beginning date), over:
(a) The life of the Certificate Holder, or the lives of the Certificate
Holder and his or her designated Beneficiary, or
(b) A period certain not extending beyond the life expectancy of the
Certificate Holder or the joint and last survivor expectancy of
the Certificate Holder and his or her designated beneficiary.
GP2QEND (4/94)
Payments must be made in periodic payments at intervals of no longer
than one year. In addition, payments must be either nonincreasing or
they may increase only as provided in Questions and Answers F-3 of
Section 1.401 (a) (9)-1 of the Proposed Income Tax Regulations.
All distributions made hereunder shall 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 requirements of Section 1.401(a) (9)-2 of the
Proposed Income Tax Regulations.
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. Life
expectancy for distributions under an Annuity Option may not be
recalculated.
7. If distributions are to be made under the Systematic Withdrawal Option
(SWO) after the required beginning date, a higher amount will be
distributed in any year if required under the minimum distribution
requirements of the Code. The minimum amount to be distributed each
year, beginning with the first calendar year for which distributions are
required and then for each succeeding calendar year, shall not be less
than the quotient obtained by dividing the Certificate Holder's Account
Value by the lesser of (1) the applicable life expectancy or (2) if the
Certificate Holder's spouse is not the designated Beneficiary, the
applicable divisor determined from the table set forth in Questions and
Answers - 4 or Questions and Answers - 5, as applicable, of section
1.401(a) 9-2 of the Proposed Income Tax Regulations. For purposes of
this determination, life expectancy for the initial distribution year
will be calculated based on single life expectancy from Table V of
Section 1.72-9 of the Income Tax Regulations. Distributions for any
subsequent year 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.
8. At the death of the Certificate Holder:
(a) If the Certificate Holder dies on or after distribution of his or
her interest has begun, the remaining portion of such interest, if
any, will continue to be distributed at least as rapidly as under
the method of distribution being used prior to the Certificate
Holder's death;
(b) If the Certificate Holder dies before distribution of his or her
interest begins, the death benefit payable to the Beneficiary will
be distributed no later than December 31 of the calendar year
which contains the fifth anniversary of the date of the
Certificate Holder's death except to the extent that an election
is made to receive distribution under an Annuity Option in
accordance with (i) or (ii) below.
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(i) Distributions to the Beneficiary may be made in installments
over the life or over a period not extending beyond the life
expectancy of the Beneficiary commencing no later than
December 31 of the calendar year immediately following the
calendar year in which the Certificate Holder died.
(ii) If the Beneficiary is the Certificate Holder's surviving
spouse, and distributions are to be made in accordance with
(i) above, distributions must begin on or before the later of
December 31 of the calendar year immediately following the
calendar year in which the Certificate Holder died or
December 31 of the calendar year in which the Certificate
Holder would have attained age 70-1/2.
Life expectancy is computed by use of the expected return multiples in
Tables V and VI of Section 1.72-9 of Section 1.72-9 of the Income Tax
Regulations. Life expectancies for distributions under an Annuity Option
may not be recalculated.
Distributions under this section are considered to have begun if
distributions are made on account of the Certificate Holder reaching the
required beginning date or if prior to the required beginning date
distributions irrevocably commence over a period permitted and in an
Annuity Option acceptable under Section .401(a) (9) of the Income Tax
Regulations.
A spousal Beneficiary may elect an Annuity Option, a lump sum payment or
treat the Certificate Holder's Account as his or her own IRA. This
election will be deemed to have been made if such surviving spouse makes
a rollover to or from such Certificate older's Account, or fails to
elect any of the above provisions.
If SWO is in effect and the Certificate Holder dies before the required
beginning date for minimum distributions, SWO payments will cease and
the surviving spouse may claim the death benefit in accordance with the
terms of this Section.
If SWO is in effect and the Certificate Holder dies after the required
beginning date for minimum distributions, the surviving spouse may elect
to continue receiving SWO payments; otherwise, the surviving spouse must
elect to receive a lump sum payment.
If SWO is in effect on the date of the Certificate Holder's death, a
nonspousal Beneficiary must receive an automatic and immediate lump sum
payment.
9. We will furnish annual calendar year reports concerning the status of
the Certificate Holder's Account.
10. Upon 90 days written notice to the Certificate Holder, We may terminate
the Certificate Holder's Account if no Purchase Payments have been
received for two full consecutive Certificate years and the paid-up
Annuity benefit at maturity would be less than $20 per month.
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11. The Certificate Holder may cancel the Certificate within 10 days of
receiving it by returning it to Us at the address above or to the person
from whom it was purchased. Within seven days from the cancellation
request, We will return all the Certificate Holder's Purchase Payments.
/s/ Xxx Xxxxxxx
President
Aetna Insurance Company of America
GP2QEND (4/94)
