EQUITABLE LIFE INSURANCE
COMPANY OF IOWA Individual Retirement
A Stock Company Domiciled in Iowa Annuity Rider
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The following language amends the Contract to which it is attached in order that
such Contract may be treated as an Individual Retirement Annuity (IRA) under
Section 408(b) of the Internal Revenue Code, as amended from time to time. The
effective date of this Rider is the later of January 1, 2002, or the Contract
Date
In the event of any conflict between the provisions of this Rider and the
Contract to which it is attached, the provisions of this Rider will control.
1. All references in this Rider to:
(a) "IRC" means the Internal Revenue Code of 1986, as amended from time to
time.
(b) "Contract" means the Contract or Certificate to which this Rider is
attached.
(c) "Owner" means the Owner of the Contract to which this Rider is
attached.
(d) "Designated Beneficiary" means the beneficiary named by the Owner in
the Contract.
(e) "We", "our", and "us" means Equitable Life Insurance Company of Iowa.
2. NONFORFEITABILITY AND NONTRANSFERABILITY.
This Contract shall be for the exclusive benefit of the Owner or his or her
beneficiary. The Owner's rights under this Contract shall be
nonforfeitable.
This Contract is nontransferable. Other than to us, it may not be sold,
assigned, discounted or pledged as collateral for a loan or as a security
for the performance of an obligation or for any other purpose.
3. CONTRIBUTIONS.
(a) Except in the case of a rollover contribution (as permitted by
Internal Revenue Code Sections 402(c), 402(e)(6), 403(a)(4),
403(b)(8), 403(b)(10), 408(d)(3) and 457(e)(16)) or a contribution
made in accordance with the terms of a Simplified Employee Pension
(SEP) as described in Section 408(k), no contributions will be
accepted unless they are in cash, and the total of such contributions
shall not exceed:
(i) $3,000 for taxable years 2002 through 2004;
(ii)$4,000 for taxable years 2005 through 2007; and
(iii) $5,000 for taxable year 2008 and later.
After 2008, the limit will be adjusted by the Secretary of the Treasury for
cost-of-living increases under IRC Section 219(b)(5)(C). Such adjustments
will be in multiples of $500.
This Contract does not require fixed premium payments.
(b) In the case of an individual who has attained age 50 before the
close of the year, the annual cash contribution limit is
increased by:
$500 for taxable years 2002 through 2005; and $1,000 for
taxable years 2006 and later.
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(c) No contributions will be accepted under a SIMPLE IRA plan established
by any employer pursuant to Code Section 408(p). No transfer or
rollover of funds attributable to contributions made by a particular
employer under its SIMPLE IRA plan will be accepted from a SIMPLE IRA,
that is, an IRA used in conjunction with a SIMPLE IRA plan, prior to
the expiration of the 2-year period beginning on the date the
individual first participated in that employer's SIMPLE IRA plan.
Any refund of premiums (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 of future
premiums or the purchase of additional benefits.
4. DISTRIBUTIONS BEFORE DEATH MUST COMMENCE NO LATER THAN AGE 70 1/2.
(a) Not withstanding any provision of this IRA to the contrary, the
distribution of the Owner's interest in the IRA shall be made in
accordance with the requirements of IRC Section 408(b)(3) and the
regulations there under, the provisions of which are herein
incorporated by reference. If distributions are not made in the form
of an annuity on an irrevocable basis (except for acceleration), then
distribution of the interest in the IRA (as determined under Section
4(c) below), must satisfy the requirements of IRC Section 408(a)(6)
and the regulations there under rather than paragraphs (b), (c) and
(d) below, and Section 5 of this Rider.
(b) The entire interest of the Owner will commence to be distributed no
later than the first day of April following the calendar year in which
the Owner attains age 701/2(the "required beginning date") over: (1.)
the life of the Owner or the lives of the Owner and his or her
Designated Beneficiary; or (2.) a period certain not extending beyond
the life expectancy of the Owner, or joint and last survivor
expectancy of the Owner and his or her Designated Beneficiary.
Payments must be made in periodic payments at intervals of no longer
than 1 year and must be either non-increasing or they may increase
only as provided in Q & As -1 and -4 of Section 1.401(a)(9)-6T of the
Temporary Income Tax Regulations (or as provided in such Final
Regulations as may be subsequently published). In addition, any
distribution must satisfy the incidental benefit requirements
specified in Q & A - 2 of Section 1.401(a)(9)-6T.
(c) The distribution periods described in paragraph (b) above cannot
exceed the periods specified in Section 1.401(a)(9)-6T of the
Temporary Income Tax Regulations (or as provided in such Final
Regulations as may be subsequently published).
(d) The first required payment can be made as late as April 1 of the year
following the year the Owner attains age 70 1/2 and must be the
payment that is required for one payment interval. The second payment
need not be made until the end of the next payment interval.
5. DISTRIBUTION UPON DEATH
(a) Death on or After Required Distributions Commence. If the Owner dies
on or after required distributions commence, the remaining portion of
his or her interest will continue to be distributed under the contract
option chosen.
(b) Death Before Required Distributions Commence. If the Owner dies before
required Distributions commence, his or her entire interest will be
distributed at least as rapidly as follows:
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(1) If the Designated Beneficiary is someone other than the
Owner's surviving spouse, the entire interest will be
distributed, starting by the end of the calendar year
following the calendar year of the Owner's death, over
the remaining life expectancy of the Designated
Beneficiary, with such life expectancy determined using
the age of the Designated Beneficiary as of his or her
birthday in the year following the year of the
individual's death, or if elected, in accordance with
paragraph (b)(3) below.
(2) If the Owner's sole Designated Beneficiary is the
Owner's surviving spouse, the entire interest will be
distributed, starting by the end of the calendar year
following the calendar year of the Owner's death (or by
the end of the calendar year in which the Owner would
have attained age 70 1/2, if later), over such spouse's
life, or if elected, in accordance with paragraph
(b)(3) below. If the surviving spouse dies before
required distributions commence to him or her, the
remaining interest will be distributed, starting by the
end of the calendar year following the calendar year of
the spouse's death, over the spouse's Designated
Beneficiary's remaining life expectancy determined
using such beneficiary's age as of his or her birthday
in the year following the death of the spouse, or if
elected, will be distributed in accordance with
paragraph (b)(3) below. If the surviving spouse dies
after the required distributions commence to him or
her, any remaining interest will continue to be
distributed under the contract option chosen.
(3) If there is no Designated Beneficiary, or if applicable
by operation of paragraph (b)(1) or (b)(2) above, the
entire interest will be distributed by the end of the
calendar year containing the fifth anniversary of the
Owner's death (or of the spouse's death in the case of
the surviving spouse's death before distributions are
required to begin under paragraph (b)(2) above).
(4) Life expectancy is determined using the Single Life
Table in Q & A - 1 of Section 1.401(a)(9)-9 of the
Income Tax Regulations. If distributions are being made
to a surviving spouse as the sole Designated
Beneficiary, such spouse's remaining life expectancy
for a year is the number in the Single Life Table
corresponding to such spouse's age in the year. In all
other cases, remaining life expectancy for a year is
the number in the Single Life Table corresponding to
the beneficiary's age in the year specified in
paragraph (b)(1) or (2) above and reduced by 1 for each
subsequent year.
(c) The "interest" in the IRA includes the amount of any outstanding
rollover, transfer, and recharacterization under Q & As - 7 and - 8 of
Section 1.408-8 of the Income Tax Regulations and the actuarial value
of any other benefits provided under the IRA, such as guaranteed death
benefits.
(d) For purposes of paragraphs (a) and (b) above, required distributions
are considered to commence on the Owner's required beginning date or,
if applicable, on the date distributions are required to begin to the
surviving spouse under paragraph (b)(2) above. However, if
distributions start prior to the applicable date in the preceding
sentence, on an irrevocable basis (except for acceleration) under an
annuity contract meeting the requirements of Section 1.401(a)(9)-6T of
the Temporary Income Tax Regulations (or as provided in such Final
Regulations as may be subsequently published), then required
distributions are considered to commence on the annuity starting date.
(e) If the sole Designated Beneficiary is the Owner's surviving spouse,
the spouse may elect to treat the IRA as his or her own IRA. This
election will be deemed to have been made if such surviving spouse
makes a contribution to the IRA or fails to take required
distributions as a beneficiary.
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6. AMENDMENTS. We reserve the right to amend or administer this Contract and
Rider as necessary to comply with the provisions of the IRC, Internal
Revenue Service Regulations or published Internal Revenue Service Rulings.
We will send a copy of such amendment to the Owner. It will be mailed to
the last post office address known to us. 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.
7. PERIODIC REPORTS. We will send the Owner an annual report that shows the
status of the Contract as of the end of each calendar year and such
information concerning required minimum distributions as is prescribed by
the Commissioner of Internal Revenue.
All other provisions of the Contract to which this Rider is attached remain
unchanged.
SIGNED FOR EQUITABLE LIFE INSURANCE COMPANY OF IOWA:
President
/s/Xxxxx Xxxxxx
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