Common use of QUALIFIED CONTRACT Clause in Contracts

QUALIFIED CONTRACT. A contract issued to a retirement plan or arrangement that receives favorable tax treatment under Section 401, 404, 408, 408A and 457 of the Internal Revenue Code, as amended. General Provisions Reports to Owners In addition to the information stated in the Reports to Owners section in the contract, the annual report will also provide additional information about this rider. Prior to the Benefit Date, the annual report will provide a projected Benefit Base and GAI as of the Benefit Date assuming no Benefit Base Resets and no further contract activity. After the Benefit Date, the annual report will provide the GAI as of the date of the report. Subsequent Purchase Payments Cumulative Purchase Payments after the first Contract Year are limited to the Maximum Additional Purchase Payments shown in the Rider Specifications, without our consent. Purchase Payments are allocated to the Guaranteed Interest Options and/or the Sub-Accounts as you direct, subject to the provisions in the Contract Value Allocation Options section. ICC20-70559 Minnesota Life 2 Minimum Contract Value Any provision in your contract requiring there be a minimum Contract Value as of the date of any withdrawal is waived while this rider is in effect. Impact of Divorce If the Designated Life is removed as the Owner of the contract (or Annuitant, in the case of an Owner that is not a natural person), due to a divorce or qualified dissolution order, this rider will terminate. Recovery of Excess Payments We may recover from you or your estate any payments made after the death of the Designated Life. Joint Owners/Joint Annuitants A Joint Owner is not permitted while this rider is in effect. If the contract Owner is not a natural person, a Joint Annuitant is not permitted while this rider is in effect. Calculation of Benefit Values Benefit Base The initial Benefit Base will be set to the initial Purchase Payment. For each subsequent Purchase Payment prior to the later of the first Contract Anniversary or the date of the first withdrawal, the Benefit Base will be increased by the amount of the subsequent Purchase Payment(s). For any subsequent Purchase Payment on or after the later of the first Contract Anniversary or the date of the first withdrawal, there will be no increase to the Benefit Base as a result of the Purchase Payment(s). Prior to the Benefit Date, any amount you withdraw is considered an excess withdrawal and will cause the Benefit Base to be reduced by an amount equal to (a) multiplied by (b) divided by (c) where: