Common use of Own Clause in Contracts

Own. This is done by either: (a) not taking a distribution within the required time period; or (b) making eligible ▇▇▇ contributions to it. If the beneficiary chooses one of these options then he or she is the contract owner. He or she will assume all rights and privileges under the contract. This right is available only to the spouse of the annuitant. HOW ARE LIFE EXPECTANCIES FOR CALCULATING REQUIRED DISTRIBUTIONS DETERMINED? Life expectancy is computed by use of the expected return multiples in Table V and VI of section 1.72-9 of the Income Tax Regulations. Unless otherwise elected by the annuitant prior to the commencement of distributions or, if applicable, by the surviving spouse where the annuitant dies before distributions have commenced, life expectancies of an annuitant or spouse beneficiary shall be recalculated annually for purposes of required distributions. An election not to recalculate shall be irrevocable and shall apply to all subsequent years. The life expectancy of a nonspouse beneficiary shall not be recalculated. Instead, life expectancy will be calculated using the attained age of such beneficiary during the calendar year in which the annuitant attains age 70 1/2, and payments for subsequent years 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. MAY THE ANNUITANT SATISFY MINIMUM DISTRIBUTION REQUIREMENTS BY RECEIVING A DISTRIBUTION FROM ANOTHER ▇▇▇? Yes. An annuitant may satisfy the minimum distribution requirements under sections 408(a)(6) and 408(b)(3) of the Code by receiving a distribution from one ▇▇▇ that is equal to the amount required to satisfy the minimum distribution requirements for two or more IRAs. For this purpose, the owner of two or more IRAs may use the "alternative method" described in Notice 88-38, to satisfy the minimum distribution requirements described above. WITHDRAWAL BENEFITS ARE THERE LIMITS ON WITHDRAWALS? Yes. These limits apply to a partial withdrawal or a surrender of the contract before the annuitant's age 59 1/2. In that case, we must receive notice of the intended disposition of the proceeds. This will not apply if the annuitant dies or is disabled. MAY TAX PENALTIES APPLY?