EXHIBIT b(4c)
VALLEY FORGE LIFE INSURANCE COMPANY
INDIVIDUAL RETIREMENT ANNUITY RIDER
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This Rider is part of the Contract. The Contract as amended is
intended to qualify as an individual retirement annuity under Section 408(b) of
the Code. The following provisions apply and replace any contrary provisions of
the Contract:
(1) You shall be the Owner. Any provision of the Contract that
would allow joint ownership, or that would allow more than 1
person to share distributions, is deleted.
(2) The Contract is not transferable or assignable (other than
pursuant to a divorce decree in accordance with applicable
law) and is established for the exclusive benefit of You and
Your beneficiaries. It may not be sold, assigned, alienated,
or pledged as collateral for a loan or as security.
(3) Your entire interest in the Contract shall be
nonforfeitable.
(4) Purchase payments shall be in cash. The following purchase
payments shall be accepted under this Contract:
(a) Rollover contributions described in Sections
402(c), 403(a)(4), 403(b)(8) and 408(d)(3) of
the Code;
(b) Xxxxxxx transferred from another individual
retirement account or annuity;
[(c) Contributions pursuant to a Simplified Employee
Pension as provided in Section 408(k) of
the Code;]
[(d) Other premium payments in an amount not in
excess of $2,000 for any year.]
You shall have the sole responsibility for determining whether
any purchase payment meets applicable income tax requirements.
(5) This Contract does not require any particular number or
amount of purchase payments. Any refund of purchase payments
(other than those attributable to excess contributions) must
be applied before the close of the calendar year following the
year of the refund toward additional purchase payments or the
purchase of additional benefits.
(6) The Annuity Date is the date your entire Contract Value
will be distributed or commence to be distributed to you. Your
Annuity Date shall be no later than April 1 of the calendar
year following the calendar year in which you attain age 70
1/2. You shall have the sole responsibility for requesting a
distribution that complies with this Rider and applicable law.
(7) With respect to any amount which becomes payable under the
Contract during your lifetime, such payment shall commence on
or before the Annuity Date and shall be payable in
substantially equal amounts, no less frequently than annually.
Payments shall be made in the manner as follows:
(a) in a lump sum, or
(b) over your life, or
(c) over the lives of you and your designated
Beneficiary, or
(d) over a period certain not exceeding your life
expectancy, or
(e) over a period certain not exceeding the joint
and last survivor expectancy of you and your
designated Beneficiary.
If your entire interest is to be distributed in other than a
lump sum, then the minimum amount to be distributed each year
(commencing with the calendar year following the calendar year
in which you attain age 70 1/2 and each year thereafter) shall
be determined in accordance with Code Section 408(b)(3) and
the regulations thereunder, including the incidental death
benefit requirements of section 401(a)(9)(G) of the Code, the
regulations thereunder, and the minimum distribution
incidental benefit requirement of Proposed Income Tax
Regulation section 1.401(a)(9)-2. Payments must be either
nonincreasing or may increase only as provided in Proposed
Income Tax Regulation section 1.401(a)(9)-1, Q&A F-3.
(8) If you die after distribution of your 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 your death.
If you die before distribution has begun, the entire interest
must be distributed no later than December 31 of the calendar
year in which the fifth anniversary of your death occurs.
However, proceeds which are payable to a named Beneficiary who
is a natural person may be distributed in substantially equal
installments over the lifetime of the Beneficiary or a period
certain not exceeding the life expectancy of the Beneficiary
provided such distribution begins not later than December 31
of the calendar year in which your death occurred. If the
Beneficiary is your surviving spouse, the Beneficiary may
elect not later than December 31 of the calendar year in which
the fifth anniversary of your death to receive equal or
substantially equal payments over the life or life expectancy
of the surviving spouse commencing at any date prior to the
date on which you would have attained age 70 1/2. Minimum
payments will be calculated in accordance with Code Section
408(b)(3) and the regulations thereunder.
For the purposes of this requirement, any amount paid to any
of your children will be treated as if it had been paid to
your surviving spouse if the remainder of the interest becomes
payable to the surviving spouse when the child reaches the age
of majority.
If you die before your entire interest has been distributed,
no additional purchase payments will be accepted under this
Contract after your death unless the Beneficiary is your
surviving spouse.
(9) If your spouse is not the named Beneficiary, the method of
distribution selected will assure that at least 50% of the
present value of the amount available for distribution is paid
within your life expectancy and that such method of
distribution complies with the requirements of Code Section
408(b)(3) and the regulations thereunder.
(10) For purposes of the foregoing provisions, life expectancy
and joint and last survivor expectancy shall be determined by
use of the expected return multiples in Tables V and VI of
Treasury Regulation ss.1.72-9 in accordance with Code Section
408(b)(3) and the regulations thereunder. In the case of
distributions under paragraph (7) of this Rider, your life
expectancy of you and your Beneficiary will be initially
determined on the basis of your attained ages in the year you
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reach 70 1/2. In the case of a distribution under paragraph
(8) of this Rider, life expectancy will be initially
determined on the basis of your Beneficiary's attained age in
the year distributions are required to commence. Unless you
(or your spouse) elect otherwise prior to the time
distributions are required to commence, your life expectancy
and, if applicable, your spouse's life expectancy will be
recalculated annually based on your attained ages in the year
for which the required distribution is being determined. The
life expectancy of a nonspouse Beneficiary will not be
recalculated.
The annual distribution required to be made by your Annuity
Date is for the calendar year in which your reached age 70
1/2. Annual payments for subsequent years, including the year
in which your Annuity Date occurs, must be made by December 31
of that year. The amount distributed for each year shall equal
or exceed the Contract Value as of the close of business on
December 31 of the preceding year, divided by the applicable
life expectancy or joint and last survivor expectancy.
You may satisfy the minimum distribution requirements under
section 408(b)(3) of the Code by receiving a distribution from
one IRA that is equal to the amount required to satisfy the
minimum distribution requirement for two or more IRAs. For
this purpose, if you own two or more IRAs, you may use the
alternative method described in Notice 88-38, 1988-1 C.B. 524,
to satisfy the minimum distribution requirements.
(11) We reserve the right to amend this Contract or Rider to
the extent necessary to qualify as an individual retirement
annuity for federal income tax purposes.
(12) This Rider is effective as of the Contract Effective
Date.
This Rider is subject to all the exclusions, definitions and provisions of the
Contract which are not inconsistent herewith.
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