Common use of Spouse Beneficiary Clause in Contracts

Spouse Beneficiary. If you designate your spouse as the sole Beneficiary of your IRA, life expectancy payments are not required to begin to your spouse until the later of December 31 of the year you would have turned 70½ had you continued to live or December 31 of the year following the year of your death. If you have named your spouse as one of several Beneficiaries for your IRA and some or all of these Beneficiaries remain as Beneficiaries as of the BDD, your spouse may still be able to delay the commencement of distributions per the above if his or her interest in your IRA has been timely separated from the interests of the other Beneficiaries named. (See the section of this Disclosure Statement entitled "Multiple Beneficiaries and Separate Accounts Under the Final Regulations" for more details.) If your spouse, as the sole Beneficiary of your IRA, designates a Beneficiary of his or her own, and your spouse dies before distributions are required to begin under either the Life Expectancy Method or the 5-Year Rule, which ever method was either elected by your spouse or required by default, the Beneficiary named by your spouse "steps up" or assumes primary Beneficiary status as if he or she was originally named by you. The option to elect the 5-Year Rule or the Life Expectancy Method is then applied to your spouse’s Beneficiary. In applying this rule, the date of death of your surviving spouse is substituted for the date of your death. Under the final regulations, if you have designated your spouse as the sole Beneficiary of your IRA, your spouse’s Applicable Life Expectancy Multiple is redetermined or "recalculated" each year up through the year of your spouse’s death, based on the age of your spouse in each year. The ability to recalculate life expectancies each year may also apply even if your spouse is not designated as the sole Beneficiary of your IRA account if his or her interest or share in your IRA is timely separated from the interests of the other Beneficiaries you named.) In the year following your spouse’s death, the Applicable Life Expectancy Multiple to be applied by your spouse’s successor Beneficiary is based on the age of your spouse in the year of his or her death, reduced by one (1) for each year that passes thereafter. In the year that the Applicable Life Expectancy Multiple reaches zero (0), the entire remaining balance in the IRA, if any, must be distributed in full to your spouse’s successor Beneficiary.

Spouse Beneficiary. If you designate your spouse as the sole Beneficiary of your IRA▇▇▇▇ ▇▇▇, life expectancy payments are not required to begin to your spouse until the later of December 31 of the year you would have turned 70½ had you continued to live or December 31 of the year following the year of your death. If you have named your spouse as one of several Beneficiaries for your IRA ▇▇▇▇ ▇▇▇ and some or all of these Beneficiaries remain as Beneficiaries as of the BDD, your spouse may still be able to delay the commencement of distributions per the above if his or her interest in your IRA ▇▇▇▇ ▇▇▇ has been timely separated from the interests of the other Beneficiaries named. (See the section of this Disclosure Statement entitled "Multiple Beneficiaries and Separate Accounts Under the Final Regulations" appearing elsewhere in this Disclosure Statement for more details.) If your spouse, as the sole Beneficiary of your IRA, designates a Beneficiary of his or her own, and your spouse dies before distributions are required to begin under either the Life Expectancy Method or the 5-Year Rule, which ever method was either elected by your spouse or required by default, the Beneficiary named by your spouse "steps up" or assumes primary Beneficiary status as if he or she was originally named by you. The option to elect the 5-Year Rule or the Life Expectancy Method is then applied to your spouse’s Beneficiary. In applying this rule, the date of death of your surviving spouse is substituted for the date of your death. Under the final regulations, if you have designated your spouse as the sole Beneficiary of your IRA▇▇▇▇ ▇▇▇, your spouse’s Applicable Life Expectancy Multiple is if redetermined or "recalculated" each year up through the year of your spouse’s death, based on the age of your spouse in each year. (The ability to recalculate life expectancies each year may also apply even if your spouse is not designated as the sole Beneficiary of your IRA account ▇▇▇▇ ▇▇▇ if his or her interest or share in your IRA ▇▇▇▇ ▇▇▇ is timely separated from the interests of the other Beneficiaries you named.) In the year following your spouse’s death, the Applicable Life Expectancy Multiple to be applied by your spouse’s successor Beneficiary is based on the age of your spouse in the year of his or her death, reduced by one (1) for each year that passes thereafter. In the year that the Applicable Life Expectancy Multiple reaches zero (0), the entire remaining balance in the IRA▇▇▇▇ ▇▇▇, if any, must be distributed in full to your spouse’s successor Beneficiary.