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EXHIBIT 4(b)(i)
[SAGE LIFE ASSURANCE OF AMERICA, INC. LOGO]
MEMBER OF SAGE INSURANCE
INDIVIDUAL RETIREMENT ANNUITY RIDER
GENERAL
This Rider is made part of the Contract to which it is attached. The Contract as
amended is intended to qualify as an individual retirement annuity under Section
408(b) of the Internal Revenue Code of 1986, as amended (the "Code").
APPLICABLE PROVISIONS
The following provisions apply and replace any contrary provisions of the
Contract:
1. You shall be the Owner. Any provision of the Contract that would allow
joint ownership, or that would allow more than one person to share
distributions, is deleted.
2. The Contract is not transferable or assignable (other than pursuant to
a divorce decree in accordance with applicable law) and is established
for the exclusive benefit of you and your Beneficiaries. It may not be
sold, assigned, alienated, or pledged as collateral for a loan or as
security.
3. Your entire interest in the Contract shall be nonforfeitable.
4. Premium payments shall be in cash. The following premium payments shall
be accepted under this Contract:
a. Rollover contributions described in Code Sections 402(c),
403(a)(4), 403(b)(8) and 408(d)(3);
b. Xxxxxxx transferred from another individual retirement account or
annuity;
c. Other premium payments in an amount not in excess of $2,000 for
any year;
[d. Contributions pursuant to a Simplified Employee Pension as
provided in Code Section 408(k)].
You shall have the sole responsibility for determining whether any
premium payment meets applicable income tax requirements.
5. 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 additional premiums or the purchase of
additional benefits.
6. The Income Date is the date your entire Account Value will be
distributed or commence to be distributed to you. Your Income Date
shall be no later than April 1 of the calendar year following the
calendar year in which you attain age 70 1/2. You shall have the sole
responsibility for electing a distribution that complies with this
Rider and applicable law.
7. With respect to any amount which becomes payable under the Contract
during your lifetime, such payment shall commence on or before the
Income Date and shall be payable in substantially equal amounts, no
less frequently than annually. Payments shall be made in the following
manner:
a. in a lump sum; or
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b. over your life; or
c. over the lives of you and your designated beneficiary; or
d. over a period certain not exceeding your life expectancy; or
e. over a period certain not exceeding the joint and last survivor
expectancy of you and your designated beneficiary.
If your entire interest is to be distributed in other than a lump sum,
then the minimum amount to be distributed each year (commencing with
the calendar year following the calendar year in which you attain age
70 1/2 and each year thereafter) shall be determined in accordance
with Code Sections 408(b)(3) and 401(a)(9), including the incidental
death benefit requirements of Code Section 401(a)(9)(G), and the
regulations thereunder including the minimum distribution incidental
benefit requirement of Proposed Treasury Regulation Section
1.401(a)(9)-2. Payments must be either nonincreasing or may increase
only as provided in Proposed Treasury Regulation Section 1.401(a)(9)-1,
Q&A F-3.
8. If you die after distribution of your interest has commenced, the
remaining portion of such interest will continue to be distributed at
least as rapidly as under the method of distribution being used prior
to your death.
If you die before distribution has begun, your entire interest in the
Contract must be distributed no later than December 31 of the calendar
year in which the fifth anniversary of your death occurs. However,
proceeds which are payable to a named beneficiary who is a natural
person may be distributed in substantially equal installments over the
lifetime of the beneficiary or a period certain not exceeding the life
expectancy of the beneficiary provided such distribution begins not
later than December 31 of the calendar year in which the first
anniversary of your death occurs. If the beneficiary is your surviving
spouse, the surviving spouse may elect not later than December 31 of
the calendar year in which the fifth anniversary of your death occurs
to receive equal or substantially equal payments over the life or life
expectancy of the surviving spouse commencing at any date prior to the
date on which you would have attained age 70 1/2. Minimum payments
will be calculated in accordance with Code Sections 408(b)(3) and the
regulations thereunder.
For the purposes of this requirement, any amount paid to any of your
children will be treated as if it had been paid to your surviving
spouse if the remainder of the interest becomes payable to the
surviving spouse when the child reaches the age of majority.
If the beneficiary is your surviving spouse, the spouse may treat the
Contract as the spouse's own IRA. This election will be deemed to have
been made if the surviving spouse makes a regular IRA contribution to
the Contract, makes a rollover to or from the Contract, or fails to
elect any of the above distribution options.
If you die before your entire interest has been distributed, no
additional premiums will be accepted under this Contract after your
death unless the beneficiary is your surviving spouse.
9. For purposes of the foregoing provisions, life expectancy and
joint and last survivor expectancy shall be determined by use of the
expected return multiples in Table V and VI of Treasury Regulation
Section 1.72-9 in accordance with Code Section 408(b)(3) and the
regulations thereunder. In the case of distributions under paragraph
7 of this Rider, the life expectancy of you and your beneficiary will
be initially determined on the basis of your attained ages in the
year you reach 70 1/2. In the case of distribution under paragraph
8 of this Rider, life expectancy will be initially determined on the
basis of your beneficiary's attained age in the year distributions
are required to commence. Unless you (or your spouse) elects
otherwise prior to the time distributions are required to commence,
your life expectancy and, if applicable, your spouse's life
expectancy will be recalculated annually based on your attained ages
in the year for which the required distribution is being determined.
The life expectancy of a nonspouse beneficiary will not
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be recalculated.
The annual distribution required to be made by your Income Date is for
the calendar year in which you reached age 70 1/2. Annual payments
for subsequent years, including the year in which your Income Date
occurs, must be made by December 31 of that year. The amount
distributed for each year shall equal or exceed the annuity value as of
the close of business on December 31 of the preceding year, divided by
the applicable life expectancy or joint and last survivor expectancy.
You may satisfy the minimum distribution requirements under Code
Section 408(b)(3) by receiving a distribution from one IRA that is
equal to the amount required to satisfy the minimum distribution
requirement for two or more IRAs. For this purpose, if you own two or
more IRAs, you may use the alternative method described in Notice
88-38, 1988-1 C.B. 524, to satisfy the minimum distribution
requirements.
You or your beneficiary, as applicable, shall have the sole
responsibility for requesting a distribution that complies with this
Rider and applicable law.
MODIFICATIONS
We reserve the right to amend the Contract or this Rider to the extent necessary
to qualify as an individual retirement annuity for federal income tax purposes.
CHARGE FOR THIS RIDER
There is no charge for this Rider.
EFFECTIVE DATE
This Rider is effective as of the Contract Date.
TERMINATION
This Rider will terminate on the date of the first to occur of the following
events:
1. The Contract is surrendered.
2. The entire interest in the Contract has been distributed.
3. You request the termination of this Rider.
TERMS AND CONDITIONS
All of the terms used in this Rider have the same meanings as in the Contract
unless otherwise clearly indicated in this Rider. This Rider is subject to all
the exclusions, definitions and provisions of the Contract which are not
inconsistent with the terms of this Rider.
[SIG]
Chairman
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