EQUITABLE LIFE INSURANCE XXXX INDIVIDUAL
COMPANY OF IOWA RETIREMENT ANNUITY
A Stock Company Domiciled in Iowa 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 a Xxxx Individual Retirement Annuity (XXXX XXX)
under Section 408(A) 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 shall 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) "Employee or 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) Maximum Permissible Amount. Except in the case of a qualified rollover
contribution or a recharacterization (as defined in (f) below), no
contribution will be accepted unless it is in cash and the total of
such contributions to all the Owner's XXXX IRA's for a taxable year
does not exceed the applicable amount (as defined in (b) below), or
the Owner's compensation (as defined in (h) below), if less, for that
taxable year. The contribution described in the previous sentence that
may not exceed the lesser of the applicable amount or the Owner's
compensation is referred to as a "regular contribution". A "qualified
rollover contribution" is a rollover contribution that meets the
requirements of IRC Section 408(d)(3), except the
one-rollover-per-year rule of Section 408(d)(3)(B) does not apply if
the rollover contribution is from an IRA other than a XXXX XXX (a
"nonROTH IRA"). Contributions may be limited under (c) through (e)
below.
(b) Applicable Amount. The applicable amount is determined under (1) or
(2) below.
(1) If the Owner is under age 50, the applicable amount is $3,000 for
any taxable year beginning in 2002 through 2004, $4,000 for any
taxable year beginning in 2005 through 2007, and $5,000 for any
taxable year beginning in 2008 and years thereafter.
(2) If the Owner is age 50 or older, the applicable amount is $3,500
for any taxable year beginning in 2002 through 2004, $4,500 for
any taxable year beginning in 2005, $5,000 for any taxable year
beginning in 2006 through 2007, and $6,000 for any taxable year
beginning in 2008 and years thereafter.
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After 2008, the limits in paragraph (b)(1) and (2) above will be
adjusted by the Secretary of the Treasury for cost-of-living increases
under Code Section 219(b)(5)(C). Such adjustments will be in multiples
of $500.
(c) Regular Contribution Limit. If (1) and/or (2) below apply, the maximum
regular contribution that can be made to all the Owner's XXXX IRAs for
a taxable year is the smaller amount determined under (1) or (2).
(1) The maximum regular contribution is phased out ratably between
certain levels of modified adjusted gross income ("modified AGI",
defined in (g) below) in accordance with the following table:
Filing Status Full Contribution Phase-Out Range No Contribution
Single or Head $95,000 or less Between $95,000 $110,000 or more
Of Household and $100,000
Joint Return or $150,000 or less Between $150,000 $160,000 or more
Qualifying and $160,000
Widow(er)
Married - $0 Between $0 and $10,000 or more
Separate Return $10,000
Dollar amounts in table are based on Modified AGI.
If the Owner's modified AGI for a taxable year is in the phase-out
range, the maximum regular contribution determined under this table
for that taxable year is rounded up to the next multiple of $10 and is
not reduced below $200.
(2) If the Owner makes regular contributions to both XXXX and non
XXXX IRAs for a taxable year, the maximum regular contribution
that can be made to all Owner's XXXX IRAs for that taxable year
is reduced by the regular contributions made to the Owner's non
XXXX IRAs for the taxable year.
(d) Qualified Rollover Contribution Limit. A rollover from a non-XXXX XXX
cannot be made to this IRA if, for the year the amount is distributed
from the non-XXXX XXX, (1) the owner is married and files a separate
return, (2) the Owner is not married and has modified AGI in excess of
$100,000, or (3) the Owner is married and together the Owner and the
Owner's spouse have modified AGI in excess of $100,000. For purposes
of the preceding sentence, a husband and wife are not treated as
married for the taxable year if they have lived apart at all times
during that taxable year and file separate returns for the taxable
year.
(e) SIMPLE IRA Limits. No contributions will be accepted under a SIMPLE
IRA plan established by any employer pursuant to IRC Section 408(p).
Also, 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 Owner first participated in that employer's
SIMPLE IRA plan.
(f) Recharacterization. A regular contribution to a non-XXXX XXX may be
recharacterized pursuant to the rules in Section 1.408A-5 of the
Income Tax Regulations as a regular contribution to this XXXX XXX,
subject to the limits described in (c) above.
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(g) Modified AGI. For purposes of (c) and (d) above, an Owner's modified
AGI for a taxable year is defined in IRC Section 408A(c)(3)(C)(i) and
does not include any amount included in adjusted gross income as a
result of a rollover from a non-XXXX XXX (a "conversion").
(h) Compensation. For purposes of (a) above, compensation is defined as
wages, salaries, professional fees, or other amounts derived from or
received for personal services actually rendered (including, but not
limited to commissions paid salesmen, compensation for services on the
basis of a percentage of profits, commissions on insurance premiums,
tips, and bonuses) and includes earned income, as defined in IRC
Section 401(c)(2) (reduced by the deduction the self-employed Owner
takes for contributions made to a self-employed retirement plan.) For
purposes of this definition, Section 401(c)(2) shall be applied as if
the term trade or business for purposes of IRC Section 1402 included
service described in subsection (c)(6). Compensation does not include
amounts derived from or received as earnings or profits from property
(including but not limited to interest and dividends) or amounts not
includible in gross income. Compensation also does not include any
amount received as a pension or annuity or as deferred compensation.
The term "compensation" shall include any amount includible in the
Owner's gross income under IRC Section 71 with respect to a divorce or
separation instrument described in subparagraph (A) of Section
71(b)(2). In the case of a married Owner filing a joint return, the
greater compensation of his or her spouse is treated as his or her own
compensation, but only to the extent that such spouse's compensation
is not being used for purposes of the spouse making a contribution to
a XXXX XXX or a deductible contribution to a non-XXXX XXX.
This contract does not require fixed premium payments.
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. DISTRIBUTION UPON DEATH. (No amount is required to be distributed prior to
the death of the owner).
(a) Notwithstanding any provision of this XXXX XXX to the contrary, the
distribution of the Owner's interest in the XXXX XXX shall be made in
accordance with the requirements of IRC Section 408(b)(3), as modified
by Section 408A(c)(5), 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 XXXX XXX (as
determined under item (c), below) must satisfy the requirements of IRC
Section 408(a)(6), as modified by Section 408A(c)(5), and the
regulations there under, rather than the distribution rules in
paragraphs (b), (c), (d), and (e) below.
(b) Upon the death of the Owner, his or her entire interest will be
distributed at least as rapidly as follows:
(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 Owner's death, or,
if elected, in accordance with paragraph (b)(3) below.
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(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 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 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 Designated Beneficiary's age in the year
specified in paragraph (b)(1) or (2) and reduced by 1 for each
subsequent year.
(c) The "interest" in the XXXX XXX 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 XXXX XXX, such as guaranteed
death benefits.
(d) For purposes of paragraph (b)(2) above, required distributions are
considered to commence on the date distributions are required to begin
to the surviving spouse under such paragraph. 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 XXXX XXX as his or her own XXXX XXX.
This election will be deemed to have been made if such surviving
spouse makes a contribution to the XXXX XXX or fails to take required
distributions as a beneficiary.
5. 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.
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6. 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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