ENDORSEMENT
APPLICABLE TO IRA CONTRACTS
As specified in the Data pages, this Contract is an "IRA Contract" which is
issued as an individual retirement annuity contract which meets the requirements
of Section [408(b)] of the Code. It is established for the exclusive benefit of
you and your beneficiaries, and the terms below change, or are added to,
applicable sections of this Contract. Also, your rights under this Contract are
not forfeitable.
1. OWNER (SECTION 1.16):
You must be both the Owner and the Annuitant.
2. ANNUITY COMMENCEMENT DATE (SECTION 1.04):
You may not choose an Annuity Commencement Date later than the maximum
maturity age stated in the Data pages. If you choose a Date later than age
70 1/2, you must withdraw at least the minimum payments required under
Sections [408(b)] and [401(a)(9)] of the Code and applicable Treasury
regulations. See Section 5.01 of the Contract and item 5 below.
3. CONTRIBUTIONS (SECTION 3.01 AND 3.02):
No Contributions will be accepted unless they are in cash (or check or
other form if we require). Except in the case of a "rollover Contribution,"
the total of such Contributions will not exceed [$2,000] for any taxable
year. A "rollover Contribution" is one permitted by Sections [402(c)],
[403(a)(4)], [403(b)(8)], or [408(d)(3)] of the Code.
Amounts transferred to the Contract from an individual retirement account
or annuity contract which meets the requirements of Section [408] of the
Code are not subject to the [$2,000] limit.
If you make a Contribution which is an "eligible retirement plan rollover"
as defined in Section [402(c)] or [403(b)(8)] of the Code, and you
commingle such Contribution with other Contributions, you may not be able
to roll over the eligible retirement plan Contributions and earnings to
another qualified plan or Code Section [403(b)] arrangement at a future
date, unless the Code permits.
4. DEATH BENEFITS (SECTION 6.01):
The death benefit pursuant to Section 6.01 of the Contract will not be paid
at your death before the Annuity Commencement Date and the coverage under
the Contract will continue with your surviving spouse as Successor
Annuitant and Owner if (i) you are married at the time of your death and
the person named as beneficiary under Section 6.02 of your Contract is your
surviving spouse; and (ii)
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your surviving spouse elects to become "Successor Annuitant and Owner" of
your Contract.
5. BENEFICIARY CONTINUANCE:
This Item 5 shall apply only if you die before the Annuity Commencement
Date, and the beneficiary named pursuant to Section 6.02 of the Contract is
a legally competent individual who is not your surviving spouse.
If there is more than one beneficiary, then all beneficiaries must meet the
requirements of the preceding sentence, or this Item 5 does not apply and
the death benefit described in Section 6.01 of the Contract is payable.
If this Item 5 applies and there is more than one beneficiary, the Annuity
Account Value shall be apportioned among your beneficiaries as you
designate pursuant to Section 6.02 of the Contract.
If you die after your "Required Beginning Date" for "Minimum Distribution"
payments described below in Item 6, subpart A of this Endorsement and such
payments have not commenced under this Contract, the death benefit will be
paid in a lump sum and this Item 5 does not apply unless prior to your
death you have notified us in accordance with our procedures then in effect
that the beneficiary named pursuant to 6.02 of the Contract is also the
designated beneficiary for "Required Payments During Your Life" described
below in Item 6 of this Endorsement.
If we receive the beneficiary's election within 30 days of receipt of proof
of your death, the beneficiary may continue your Contract pursuant to this
Item 5 under the terms set forth in a through h below. Your Contract may be
continued by one or more beneficiaries (collectively, the "Continuation
Beneficiary"). If there is more than one beneficiary, the election must be
provided to us within 30 days by each beneficiary with respect to that
beneficiary's portion of the Annuity Account Value. For any beneficiary who
does not so timely elect, we will pay that beneficiary's share of the death
benefit pursuant to Section 6.01 of the Contract in a lump sum.
a. the Continuation Beneficiary shall automatically become the Annuitant
as defined in Section 1.01 of the Contract with respect to that
Continuation Beneficiary's portion of the Annuity Account Value.
b. the Continuation Beneficiary shall only have the right to transfer
amounts among the Investment Options.
c. the Continuation Beneficiary cannot make any additional contributions.
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d. distributions to the Continuation Beneficiary will be made in
accordance with requirements described in Item 6 of this Endorsement.
If there is more than one beneficiary, and any Continuation
Beneficiary requests payment pursuant to Item 6, subpart B(i) of this
Endorsement, then all Continuation Beneficiaries must agree to make
this payment election. If all Continuation Beneficiaries cannot so
agree, then we will instead make payment pursuant to the second
paragraph of Item 6, subpart B of this Endorsement. Further, where
payment pursuant to Item 6, subpart B(i) of this Endorsement is
elected by all Continuation Beneficiaries, the Annuity Account Value
apportioned to each Continuation Beneficiary is distributed based upon
the life expectancy of the oldest of the beneficiaries designated
under Section 6.02 of the Contract, even if that individual does not
elect to be a Continuation Beneficiary.
e. the Continuation Beneficiary may withdraw the Annuity Account Value
apportioned to such Continuation Beneficiary at any time; withdrawals
made after we have received a Continuation Beneficiary's election to
continue this Contract are not subject to a withdrawal charge and will
end payment pursuant to Item 6, subpart B(i) of this Endorsement as to
that Continuation Beneficiary. Any remaining Annuity Account Value
apportioned to that Continuation Beneficiary will be distributed as a
lump sum.
f. upon the Continuation Beneficiary's death, we will make a lump sum
payment (other payment options are not available) to the person
designated by the deceased Continuation Beneficiary to receive that
deceased Continuation Beneficiary's portion of the Annuity Account
Value, if any.
g. the Contract cannot be assigned and must continue in your name for
benefit of your Continuation Beneficiary.
h. if a minimum income benefit pursuant to Section 7.07 of the Contract
and/or a minimum death benefit pursuant to Section 6.01 of the
Contract are in effect upon our receipt of proof of your death, the
charges, if any, for such benefit(s) will no longer apply and the
minimum income benefit and the minimum death benefit shall no longer
be in force.
6. REQUIRED PAYMENTS:
This Contract is subject to these "Required Payment" or "Minimum
Distribution" rules of Sections [408(b)] and [401(a)(9)] of the Code and
the Treasury Regulations which apply.
A. MINIMUM DISTRIBUTION RULES -- REQUIRED PAYMENTS DURING YOUR LIFE --
Your entire interest in this Contract will be distributed or begin to
be
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distributed no later than the first day of April following the
calendar year in which you attain age 70 1/2 ( "Required Beginning
Date "). Your entire interest may be distributed, as you elect, over
(a) your life, or the lives of you and your designated beneficiary, or
(b) a period certain not extending beyond your life expectancy, or the
joint and last survivor expectancy for you and your designated
beneficiary. Distributions must be made in periodic payments at
intervals of no longer than one year. In addition, payments must be
either non-increasing or they may increase only as provided in [Q & A
F-3 of Section 1.401(a)(9)-1] of the Proposed Treasury Regulations, or
any successor Regulation thereto.
All distributions made under this Contract must be made in accordance
with the requirements of Sections [408(b)] and [401(a)(9)] of the
Code, including the incidental death benefit requirements of Section
[401(a)(9)(G)] of the Code, and applicable Treasury Regulations,
including the minimum distribution incidental benefit requirements of
Section [1.401(a)(9)-2] of the Proposed Treasury Regulations, or any
successor Regulation thereto.
For purposes of determining the "period certain" referred to in the
first paragraph of this Section, life expectancy is computed by use of
the expected return multiples in Tables [V and VI] of Treasury
Regulation Section [1.72-9]. Unless you otherwise elect prior to the
time distributions are required to begin, life expectancies will be
recalculated annually. Such election will be irrevocable and will
apply to all subsequent years. The life expectancy of a non-spouse
beneficiary, if the naming of such a beneficiary is permitted by our
rules then in effect, may not be recalculated. Instead, life
expectancy will be calculated using the attained age of such
beneficiary during the calendar year in which you attain age 70 1/2,
and payments of 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.
B. MINIMUM DISTRIBUTION RULES -- DEATH BENEFIT - If you die after
distribution of your interest in this Contract has begun, 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 your death.
If you die before distribution of your interest in this Contract
begins, distribution of your entire interest will be completed no
later than December 31 of the calendar year containing the fifth
anniversary of your death, except to the extent that an election is
made to receive death benefit distributions in accordance with (i) or
(ii) below:
(i) If your interest is payable to a designated beneficiary, then
your entire interest may be distributed over the life of, or over
a period certain
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not greater than the life expectancy of, the designated
beneficiary. Such distributions must commence on or before
December 31 of the calendar year immediately following the
calendar year of your death.
(ii) If the designated beneficiary is your surviving spouse, the date
that distributions are required to begin in accordance with (i)
above shall not be earlier than the later of (1) December 31 of
the calendar year immediately following the calendar year of your
death or (2) December 31 of the calendar year in which you would
have attained age 70 1/2.
If the designated beneficiary is your surviving spouse, and a
Successor Annuitant and Owner option (described in item 4 above of
this Endorsement) is elected, the distribution of your interest need
not be made until after your spouse's death.
For purposes of determining the "period certain" referred to above,
life expectancy is computed by use of the expected return multiples in
[Table V and VI] of Treasury Regulation Section [1.72-9]. For purposes
of distributions beginning after your 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 item, 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 item are considered to have begun if
distributions are made because you have reached your Required
Beginning Date, or if prior to the Required Beginning Date,
distributions irrevocably commence to you over a period permitted and
in any annuity form acceptable under Section [1.401(a)(9)-1] of the
Proposed Treasury Regulations or any successor Regulation thereto.
7. REPORTS - NOTICES (SECTION 9.04):
We will send you a report as of the end of each calendar year showing the
status of the annuity and any other reports required by the Code or
Treasury Regulations.
8. ASSIGNMENTS (SECTION 9.05):
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Your rights under this Contract may not be assigned, pledged or transferred
except as permitted by law. You may not name a new Owner, except as
described in item 4 of this Endorsement.
9. TERMINATION OF CONTRACT:
If an annuity under the Contract fails to qualify as an annuity under
Section [408(b)] of the Code, we will have the right to terminate the
Contract. We may do so, upon receipt of notice of such fact, before the
Annuity Commencement Date. In that case, we will pay the Annuity Account
Value less a deduction for the part which applies to any Federal income tax
payable by you which would not have been payable with respect to an annuity
which meets the terms of the Code.
EQUITABLE OF COLORADO, INC.
/s/ Xxxxxx X. Xxxxxxxxxx /s/ Xxxxx X. Xxxxxxx
------------------------------------- ------------------------------
Xxxxxx X. Xxxxxxxxxx, Xxxxx Xxxxxxx, Secretary
President and Chief Executive Officer
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