RELIASTAR 403(B) RIDER
LIFE INSURANCE COMPANY
OF NEW YORK
A Stock company..
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On the basis of the application for which this Contract is issued and to which
this Rider is attached, the Contract is intended to qualify under Section 403(b)
of the Interal Revenue Code. This Contract is established for the exclusive
benefit of the Owner and its beneficiaries.
In the event of any conflict between the provisions of this Rider and the
Contract, 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.
(1) DEFINITIONS. Words and phrases used in the Contract have the same meaning
when used in this Rider. The words shown below have the meanings stated.
(a) "IRC" means the United States Internal Revenue Code of 1986, as
amended from time to time.
(b) "EMPLOYEE OR OWNER" means the Owner of the Contract to which this
Rider is attached.
(c) "DESIGNATED BENEFICIARY" means the beneficiary named by the Owner in
the Contract.
(2) This Contract is nontransferable. Other than to us, it may not be sold,
assigned, discounted or pledged as collateral for a loan or as security for
the performance of an obligation or for any other purpose.
(3) This Contract is valid only if it is purchased:
(a) For an employee by an employer as described in IRC Section 501(c)(3)
which is exempt from income tax under IRC Section 501(a); or
(b) For an employee who performs services for an educational organization
described in IRC Section 170(b)(1)(A)(ii) by an employer which is a
state, a political subdivision of a state or an agency or
instrumentality of a state or political subdivision thereof; or
(c) By an employee in a rollover or a direct transfer as permitted by IRC
Sections 403(b)(8), 403(b)(10), and 408(d)(3).
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(4) The premium payments applicable to this Contract must be attributable to
the employee's salary reduction agreement, or to permitted employer
contributions, except in the case of a rollover contribution or a direct
transfer by an employee (as permitted by IRC Section 403(b)(8), 403(b)(10),
and 408(d)(3)). The premium payment must be in cash. The total of such
premium payments cannot exceed the lesser of:
(a) $9,500; or
(b) the exclusion allowance described in IRC Section 403(b)(2), as
amended, for any taxable year; and, in no event exceeding any limits
set forth in IRC Section 401(a)(30), 402(g), 403(b)(2) and 415.
Premiums may be refunded when necessary to comply with IRC Section
403(b).
(5) Distribution of the assets of this Contract may not be made before the
Owner:
(a) Attains age 59-1/2; or
(b) Separates from the service; or
(c) Dies; or
(d) Becomes disabled.
In the case of financial hardship, distributions of premiums paid (not
earnings) may be made before (a), (b), (c), or (d) above.
(6) Not withstanding any provision of this Rider to the contrary, the
distribution of an individual's interest will be made under the minimum
distribution requirements of IRC Section 403(b)(10) including:
(a) Any regulations under that Section; and
(b) The incidental death benefit provisions of IRC Section 401(a)(9) and
any regulations under that Section.
(7) The Owner's entire interest in the account must be distributed, or begin to
be distributed, by the Owner's required beginning date. The Owner's
required beginning date is the April 1st following the calendar year in
which the Owner reaches age 70 1/2 or retires, which ever occurs first.
(For Owners covered by governmental or church plans, the required beginning
date is the later of: (a) April 1st of the calendar year after the
attainment of age 70 1/2; or (b) April 1st following the calendar year of
retirement.) For each succeeding year, a distribution must be made on or
before December 31st. By the required beginning date the Owner may elect to
have the balance in the account distributed in one of the following forms:
(a) To the Owner of this Contract in a single payment; or
(b) To the Owner as a life annuity (which may provide for a minimum term
certain period not extending beyond the life expectancy of the Owner);
or
(c) To the Owner and the Owner's Designated Beneficiary, as a joint and
survivor annuity (which may provide for a minimum term certain period
not extending beyond the life expectancy of the Owner and the
Designated Beneficiary) in equal or substantially equal amounts; or
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(d) To the Owner as an annuity certain not extending beyond the life
expectancy of the Owner; or
(e) If the Owner has a living Designated Beneficiary, to the Owner as an
annuity certain not extending beyond the joint life expectancy of the
Owner and the Owner's Designated Beneficiary in equal or substantially
equal amounts.
If the Owner's entire interest is to be distributed in a manner other than
set forth in (a) above, then the minimum distribution that must be made
each year will be determined by dividing the Owner's entire interest by the
Owner's life expectancy. In the case of (c) above, the entire interest will
be divided by the joint and last survivor expectancy of the Owner and the
Designated Beneficiary.
If the Owner's Designated Beneficiary is someone other than the Owner's
spouse, then the minimum distribution that must be made each year will be
not less than the amount obtained by dividing the Owner's entire interest
by the joint and last survivor expectancy of the Owner and the Owner's
Designated Beneficiary, whose life expectancy in making the calculation
will not be more than ten (10) years less than the Owner.
Life expectancy and joint and last survivor expectancy are computed by use
of the return multiples contained in Section 1.72-9 of the IRC Regulations.
For this computation, the Owner's life expectancy (and the life expectancy
of the Owner's spouse) may be recalculated, but no more frequently than
annually. The life expectancy of a non-spouse Designated Beneficiary may
not be recalculated.
(8) With respect to any amount, which upon the death of the Owner, becomes
payable under any supplementary contract issued in exchange for this
Contract, no provision of this Contract or such supplementary contract will
be applicable to the extent that it permits or provides for settlement of
such amount in any manner other than as set forth in (a) or (b) below:
(a) If the Owner dies after distribution of the Owner's 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.
(b) If the Owner dies before distribution of the Owner's interest
commences, the Owner's entire interest will be distributed in
accordance with one of the following provisions:
(i) The Owner's entire interest will be paid in one sum by December
31 of the fifth (5th) year after the date of death; or in a
series of payments which will be completed by December 31 of the
fifth (5th) year after the date of death.
(ii) If the Owner's interest is payable to the Designated Beneficiary,
and the Owner has not elected (i) above, then the entire interest
will be distributed in substantially equal installments over the
life or life expectancy of the Designated Beneficiary.
Distribution must begin no later than December 31 of the year
following the year the Owner dies.
(iii) If the Designated Beneficiary of the Owner is the Owner's
surviving spouse, distribution must begin by December 31 of the
later of:
(a) The year immediately following the year the Owner dies; or
(b) The year in which the Owner would have attained age 70 1/2.
Payments can be received over the life or life expectancy of the
surviving spouse.
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For the purposes of the above, payments will be calculated by use of the
return multiples specified in Section 1.72-9 of the IRC Regulations. Life
expectancy of a surviving spouse may be recalculated annually. In the case
of any other Designated Beneficiary, life expectancy will be recalculated
at the time payment first commences. Payments for each subsequent
12-consecutive month period will be based on such life expectancy minus the
number of whole years passed since distribution first commenced.
For purposes of this requirement, 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.
(9) This paragraph applies to distributions made on or after January 1, 1993.
Notwithstanding any provision of this Contract to the contrary that would
otherwise limit an Owner's election under this Contract, an Owner may
elect, at any time and in any manner prescribed by us, but subject to the
distribution restrictions of paragraph 5, to have any portion of an
eligible rollover distribution paid directly to an eligible retirement plan
specified by the Owner in a direct rollover.
For the purpose of this paragraph, the following definitions apply:
(a) ELIGIBLE ROLLOVER DISTRIBUTION is any distribution of all or any
portion of the balance to the credit of the Owner, not including:
(i) Any distribution that is one of a series of substantially equal
periodic payments (not less frequently than annually) made for
the life or life expectancy of the Owner or the joint lives or
joint life expectancies of the Owner and the Designated
Beneficiary, or for a specified period of ten (10) years or more;
or
(ii) Any distribution to the extent such distribution is required
under IRC Sections 401(a)(9) or 403(b)(10); and
(iii) The portion of any distribution that cannot be included in gross
income.
(b) ELIGIBLE RETIREMENT PLAN is:
(i) An annuity described in IRC Section 403(b);
(ii) An individual retirement account described in IRC Section 408(a);
or
(iii) An individual retirement annuity described in IRC Section
408(b).
However, in the case of an Eligible Rollover Distribution to the
surviving spouse, an eligible retirement plan is (ii) or (iii) above.
(c) DIRECT ROLLOVER is a payment by us to the Eligible Retirement Plan
specified by the Owner.
(d) OWNER, for the purposes of this paragraph, includes the Owner's
surviving spouse and the Owner's spouse or former spouse who is an
alternate payee under a qualified domestic relations order, as defined
in IRC Section 414(p).
(10) This Contract will be for the exclusive benefit of the Owner or the
Designated Beneficiary. The Owner's rights under this Contract will be
nonforfeitable.
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(11) Effective for years beginning after December 31, 1988, except in the case
of a Contract purchased by a church, no premium payments applicable to this
contract can be made unless all employees of the employer may elect to have
employer make contributions of more than $200 under a salary reduction
agreement.
For purposes of this paragraph any employee who is a participant in (a),
(b) or (c) below may be excluded.
(a) An eligible deferred compensation plan under IRC Section 457;
(b) A qualified cash or deferred arrangement; or
(c) Another IRC Section 403(b) annuity contract.
In addition, any nonresident aliens and students who normally work less
than twenty (20) hours per week may be excluded.
The issue date (effective date) of this amendment is the Contract Issue Date
unless another date is shown.
SIGNED FOR RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK:
President /S/ Xxxxx Xxxxxxxx Secretary /S/ Xxxxx Xxxxxxx-Xxxxxxx
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