Pacific Life & Annuity Company [700 Newport Center Drive Newport Beach, CA 92660 (800) 748-6907]
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Pacific Life & Annuity Company [000 Xxxxxxx Xxxxxx Xxxxx Xxxxxxx Xxxxx, XX 00000 (000) 000-0000] |
SIMPLE INDIVIDUAL RETIREMENT ANNUITY (“SIMPLE IRA”) RIDER
This Rider is a part of the Contract to which it is attached (the Contract) by Pacific Life &
Annuity Company (the Company). This Rider expires concurrently with the Contract and is subject to
all provisions, definitions, limitations and conditions of the Contract not changed by this Rider.
The Contract is hereby modified as specified below in order to qualify as a SIMPLE Individual
Retirement Annuity (SIMPLE IRA) under Code Section 408(p).
The provisions of this Rider shall control if they are in conflict with those of the Contract.
Pursuant
to Section 3 of the federal Defense of Marriage Act (“DOMA”), same-sex marriages currently are not recognized for purposes of federal law. Therefore, the favorable income-deferral options
afforded by federal tax law to an opposite-sex spouse under Internal Revenue Code sections 72(s)
and 401(a)(9) are currently NOT available to a same-sex spouse. Same-sex spouses who own or are
considering the purchase of annuity products that provide benefits based upon status as a spouse
should consult a tax advisor. To the extent that an annuity contract or certificate accords to
spouses other rights or benefits that are not affected by DOMA, same-sex spouses remain entitled to
such rights or benefits to the same extent as any annuity holder’s spouse.
TABLE OF CONTENTS
| Page | ||||
Definitions |
2 | |||
SIMPLE IRA Provisions |
3 | |||
Tax Qualification Provisions |
8 | |||
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A. Definitions
Annuitant - The individual named as a measuring life for periodic annuity payments under the
Contract.
Annuity Start Date - The first day of the first period for which an amount is received as an
annuity under the Contract (taking any Separate Shares into account), as provided in Code Section
72(c)(4) and any Regulations relating thereto. Such date may be a date shown in the Contract
Specifications, or the date the Owner has elected most recently under the Contract, if any, for the
start of annuity payments if the Annuitant is still living and the Contract is in force; or if
earlier, the date that such annuity payments actually begin under the Contract (taking any Separate
Shares into account).
Applicable Designation Date - September 30 of the calendar year next following the Owner’s Year of
Death, in accordance with Reg. § 1.401(a)(9)-4, Q&A-4.
Applicable Distribution Period - The period used to determine the amount required to be distributed
as an RMD during a Distribution Year.
Code - The Internal Revenue Code of 1986, as amended.
Company - Pacific Life & Annuity Company.
Contract or Policy - The attached contract, policy or certificate issued by the Company as an IRA.
Contributions
- The Purchase Payments, premiums, rollovers or other contributions received by the
Company under the Contract.
Designated Beneficiary or DB - An individual designated or treated as a beneficiary under the
Contract for RMD purposes in accordance with the Regulations under Code Section 401(a)(9)(E) and
related provisions, e.g., Reg. § 1.401(a)(9)-4. Generally, an individual must be such a
beneficiary as of the Owner’s date of death and remain such a beneficiary until the Applicable
Designation Date in order to be treated as a Designated Beneficiary.
DB Election Date - The date that is 30 days prior to the DB Required Beginning Date.
DB Required Beginning Date - December 31 of the calendar year next following the Owner’s Year of
Death.
Distribution Year - The calendar year for which an RMD is required. The first Distribution Year is
the calendar year in which the Owner attains age 701/2 (or, where applicable under Reg. §
1.401(a)(9)-5, Q&A-1(b), the calendar year next following the Owner’s Year of Death). Each
subsequent calendar year is also a Distribution Year.
IRA - An individual retirement account or individual retirement annuity under Code Section 408.
IRS - Internal Revenue Service.
Life Expectancy - The life expectancy of one or more individuals as determined by using the
appropriate table in Reg. § 1.401(a)(9)-9.
Measuring Designated Beneficiary - The Designated Beneficiary as of the DB Required Beginning Date
whose Life Expectancy is used under Regs. § 1.401(a)(9)-4 and § 1.401(a)(9)-5, Q&A-7, to determine
any Applicable Distribution Period as of such date. If as of the Applicable Designation Date any
trust, estate or other entity is treated under Reg. § 1.401(a)(9)-4, Q&A-3 and Q&A-5, as a
beneficiary under the Contract (taking any Separate Shares into account), the Contract shall be
deemed to have no Measuring Designated Beneficiary. If as of the Applicable Designation Date the
Contract (taking any Separate Shares into account) has more than one Designated Beneficiary (and no
entity beneficiary), the Measuring Designated Beneficiary is the Designated Beneficiary with the
shortest Life Expectancy as of such date.
Non-Xxxx XXX - An IRA that is not a Xxxx XXX.
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Notice Date - The day on which the Company receives, in a form satisfactory to the Company, proof
of death and instructions satisfactory to the Company regarding payment of death benefit proceeds.
Owner or you - The natural person who is the beneficial owner of the Contract.
Owner’s Election Date - December 1 of the calendar year in which the Owner attains age 70 1/2.
Owner’s Year of Death - The calendar year in which the Owner dies.
Plan - A tax-qualified retirement plan or arrangement, including an IRA or a SIMPLE IRA plan.
QDRO - A qualified domestic relations order under Code Section 414(p).
Regulation or Reg. - A regulation issued or proposed pursuant to the Code.
Required Beginning Date - April 1 of the calendar year next following the calendar year in which
the Owner reaches age 70 1/2. If distributions hereunder commence prior to such date under an
annuity option that provides for distributions that are made in accordance with Reg.
§ 1.401(a)(9)-6, Q&A-1, then the Annuity Start Date shall be treated as the Required Beginning Date
in accordance with Reg. § 1.401(a)(9)-6, Q&A-10.
RMD - Required minimum distribution under Code Section 401(a)(9) or related Code provision.
Xxxx XXX - An IRA under Code Section 408A.
Separate Share - A separate portion or segregated share of the benefits under the Contract that is
determined by an acceptable separate accounting under Reg. § 1.401(a)(9)-8, Q&A-3, or that
qualifies as a segregated share for an alternate payee under a QDRO under Reg. §1.401(a)(9)-8,
Q&A-6(b)(1). A Separate Share shall be treated as a separate contract for RMD purposes and
Sections B.8 and B.9 below.
SIMPLE IRA - A SIMPLE IRA under Code Section 408(p).
Spouse - The Owner’s spouse, including a former spouse covered by a QDRO who is treated as the
Owner’s spouse pursuant to Reg. § 1.401(a)(9)-8, Q&A-6.
Spouse’s
Continuation Election Date - The date that is 30 days prior to the earlier of the Spouse’s
Required Beginning Date or December 31 of the fifth calendar year after the Owner’s Year of Death,
in accordance with Reg. § 1.401(a)(9)-3, Q&A-4(c).
Xxxxxx’s Required Beginning Date - The later of December 31 of the calendar year next following the
Owner’s Year of Death or December 31 of the calendar year in which the deceased Owner would have
attained age 70 1/2.
Xxxxxx’s Year of Death - The calendar year in which the Surviving Spouse dies.
Surviving Spouse - The surviving Spouse of a deceased Owner.
B. SIMPLE IRA Provisions
| 1. | Annuitant is Owner - The Annuitant shall be at all times the Owner of the Contract (or its
beneficial Owner where a fiduciary is its legal Owner). Such individual Owner’s rights under
the Contract shall be nonforfeitable, and the Contract shall be for the exclusive benefit of
such Owner and his or her beneficiaries. |
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| 2. | Benefits Not Transferable - No benefits under the Contract may be transferred, sold,
assigned, borrowed or pledged as collateral for a loan, or as security for the performance of
an obligation, or for any other purpose, to any person; except that the Contract may be
transferred to a former or separated spouse of the Owner under a divorce or separation
instrument described in Code Section 408(d)(6). In the event of such a transfer, the
transferee shall be treated for all purposes as the Owner under the Contract. |
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| 3. | Contributions - No Contribution shall be allowed into the Contract unless it is (a) a cash
Contribution made on the Owner’s behalf under a SIMPLE IRA Plan described in Code Section
408(p) or (b) a rollover Contribution or transfer of assets from another SIMPLE IRA of the
Owner. Annual Contribution amounts shall not exceed the $10,000 adjustable limit under Code
Section 408(p)(2)(A)(ii) and (2)(E)(i) for years after 2004 (as increased by the required
employer contribution amount under Code Section 408(p)(2)(A)(iii) or (B)(i), whichever is
applicable). For years after 2005, the $10,000 limit is indexed for cost-of-living
adjustments under Code Section 408(p)(2)(E)(ii) at $500 increments. |
| (a) | For an Owner age 50 or older the $10,000 limit is increased by $2,500 under Code
Section 414(v)(2)(B)(ii). For years after 2006, this $2500 limit also is indexed for
cost-of-living adjustments under Code Section 414(v)(2)(C) at $500 increments. |
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| (b) | Despite any limit on Contributions, an individual may make a repayment of (i) a qualified
reservist
distribution described in Code Section 72(t)(2)(G) during the 2-year period beginning on the
day after the end of the active duty period or (ii) a distribution for a federally declared
disaster when
authorized. |
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| (c) | If the Contract is maintained pursuant to a SIMPLE IRA Plan, the Owner, along with the
Owner’s employer (and any designated Plan representative other than the Company), shall
have the sole responsibility for determining whether any Contribution satisfies the
applicable income tax requirements; otherwise, the Owner shall have such sole
responsibility. |
| 4. | Initial 2-Year Rules - Prior to the expiration of the 2-year period beginning on the date
that the Owner first participated in any SIMPLE IRA Plan maintained by the Owner’s employer,
any rollover, transfer or distribution from this SIMPLE IRA that is not made timely to another
SIMPLE IRA of the Owner may be subject to a 25% penalty tax, as well as to ordinary income
tax. Any rollover or transfer made after such 2-year period to any IRA of the Owner or other
eligible retirement plan under Code Section 408(d)(3)(A) can be tax-free if such transaction
is made in a timely and appropriate manner. |
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| 5. | Transfers Without Cost - Where the Contract has been set up under a SIMPLE IRA Plan of an
employer who made all contributions to the SIMPLE IRAs of a designated trustee or issuer,
within the meaning of Code Section 408(p)(7), the Owner’s balance under the Contract may be
transferred without cost or penalty, within the meaning of Code Section 408(p)(7), to another
IRA of the Owner or to another eligible retirement plan in accordance with Code Section
408(d)(3)(A) and (G). |
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| 6. | Flexible Premiums - Any premium or Purchase Payment under the Contract (after the initial
payment) is not fixed, but may not be less than any minimum account stated in the Contract
Schedule. |
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| 7. | Refunds - Any premium refund declared by the Company under the Contract, other than a refund
attributable to an excess Contribution, shall be applied toward the purchase of additional
benefits or the payment of future premiums before the close of the calendar year following the
calendar year of the refund. |
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| 8. | Required Minimum Distributions (RMDs) - The Contract and all benefits, distributions and
payments made under it shall comply with and conform to the RMD and incidental death benefit
rules in Code Sections 401(a)(9), 408(a)(6) and 408(b)(3) and the Regulations relating
thereto, and shall be administered or adjusted accordingly, e.g., pursuant to the Tax
Qualification Provisions below. Such rules shall override any benefit, distribution or
payment provisions in the Contract that are inconsistent with such rules, and the selection of
any annuity or other distribution option described in the Contract (or offered by the Company)
that does not satisfy the requirements of this Section B.8 or Code Section 401(a)(9) shall not
be permitted. Accordingly, except to the extent that RMDs are waived in accordance with Code
Section 401(a)(9) (e.g., for 2009): |
| (a) | The entire interest under the Contract shall be distributed: |
| (i) | No later than the Required Beginning Date, or |
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| (ii) | By periodic distributions, starting no later than the Required Beginning Date,
over the Owner’s life or the lives of the Owner and a Designated Beneficiary (or over a
period not |
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extending beyond the Owner’s Life Expectancy or the joint and last survivor
Life Expectancy of the Owner and a Designated Beneficiary). |
| (b) | RMDs shall be made in accordance with the Regulations under Code Sections 401(a)(9) and
408(b)(3) and related Code provisions. Accordingly: |
| (i) | If the Owner has not elected otherwise in writing to the Company by the Owner’s
Election Date to have the Owner’s entire interest distributed under another method
available under the Contract (or offered by the Company) that qualifies under Code
Section 401(a)(9) (e.g., under Reg. § 1.401(a)(9)-6, Q&A-1(a), or § 1.401(a)(9)-8,
Q&A-2), the RMD amount that must be distributed each Distribution Year with respect to
the Contract shall be equal to the quotient obtained by dividing the account balance
for the Contract (as determined under Reg.
§ 1.401(a)(9)-6, Q&A-12, and § 1.408-8, Q&A-6, including any adjustment for any
rollover, transfer or recharacterization under Reg. § 1.408-8, Q&A-7 or Q&A-8) by the
Applicable Distribution Period. For these purposes - |
| (1) | The Applicable Distribution Period is determined by using the Uniform
Lifetime Table in Reg. § 1.401(a)(9)-9, Q&A-2, in accordance with Reg. §
1.401(a)(9)-5, Q&A-4(a), or |
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| (2) | If the Owner’s spouse is treated as the sole Designated Beneficiary for
the Contract (taking any Separate Shares into account) for the Distribution Year
under Reg.
§ 1.401(a)(9)-5, Q&A-4(b), the Applicable Distribution Period is the longer of the
distribution period under subparagraph (1) immediately above or the joint Life
Expectancy of the Owner and such spouse, recalculated annually and based on their
attained ages as of their birthdays in such Distribution Year, as reflected in the
Joint and Last Survivor Table in Reg. § 1.401(a)(9)-9, Q&A-3. |
Such RMD must be distributed no later than the Required Beginning Date for the first
Distribution Year, and for each subsequent Distribution Year by December 31 thereof.
However, the Owner may arrange to have any portion (or all) of such RMD distributed from
another Non-Xxxx XXX owned by such Owner (rather than from the Contract), in accordance
with Reg. § 1.408-8, Q&A-9. If the Owner dies on or after the Required Beginning Date,
an RMD is required for the Owner’s Year of Death, determined as if the Owner had lived
throughout that year. |
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| (ii) | As of the Owner’s Election Date or at any time thereafter (on 30 days notice to
the Company), the Owner may elect in writing to have any portion or all of the
undistributed interest under the Contract applied to an annuity option available under
the Contract (or offered by the Company) that qualifies under Code Section 401(a)(9) or
Reg. § 1.401(a)(9)-6, Q&A-1(a), in accordance with Reg. § 1.401(a)(9)-8, Q&A-2(a)(3).
Such an annuity option must make annuity or other periodic payments at intervals no
longer than one year, and must satisfy the other requirements of Reg. § 1.401(a)(9)-6,
including: |
| (1) | Life annuity or a joint and survivor annuity. The Owner must be a
measuring life under any life annuity elected during the Owner’s lifetime. Any
periodic annuity payment to any survivor under a joint and survivor annuity may not
exceed the applicable percentage of the annuity payment to the Owner and other
limits, as provided in Reg. § 1.401(a)(9)-6, Q&A-2. |
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| (2) | Life (or joint and survivor) annuity with period certain. The amounts
and duration of the annuity payments must satisfy the requirements in Reg. §
1.401(a)(9)-6, Q&A-1(b) and Q&A-2(d). |
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| (3) | Period certain annuity without a life contingency. The period certain
may not exceed the maximum period specified in Reg. § 1.401(a)(9)-6,
Q&A-3 and Q&A-10(b). |
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| (4) | Annuity payments may not be in increasing amounts, except as allowed by
Reg.
§ 1.401(a)(9)-6, Q&A-1(a) or Q&A-14. |
| (c) | The Owner or the Owner’s beneficiary, as applicable, shall have the sole responsibility
for requesting or arranging for distributions that comply with this Rider and applicable
income tax requirements. |
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| 9. | RMDs upon Owner’s Death - Upon the Owner’s death, RMDs shall be made under the Contract in
accordance with this Section B.9 and Code Section 401(a)(9) (and other Code provisions and
Regulations relating thereto). Accordingly, selection of any annuity or other distribution
option described in the Contract (or offered by the Company) that does not satisfy the
requirements of this Section B.9 or Code Section 401(a)(9) shall not be permitted. |
| (a) | If the Owner dies before distribution of his or her interest in the Contract has begun
in accordance with paragraph 8(a) above, the entire interest shall be distributed by
December 31 of the fifth calendar year that follows the Owner’s Year of Death, except to
the extent that paragraph 9(c) or (d) below applies. |
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| (b) | If the Owner dies after distribution of the Owner’s interest in the Contract has begun
in accordance with paragraph 8(a) above but before the Owner’s entire interest has been
distributed, the remaining interest shall be distributed at least as rapidly as under the
method of distribution being used immediately prior to the Owner’s death, except to the
extent that paragraph 9(c) or (d) below applies. To the extent that the Contract has no
annuity payout option in effect and no Measuring Designated Beneficiary as of the
Applicable Designation Date (and paragraph 9(c) and (d) do not apply), then the Applicable
Distribution Period shall be determined by the Owner’s remaining Life Expectancy, using the
Owner’s age as of the Owner’s birthday in the Owner’s Year of Death. For Distribution
Years after the Owner’s Year of Death such Applicable Distribution Period is reduced by one
year for each calendar year that has elapsed since the Owner’s Year of Death. |
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| (c) | If the Surviving Spouse is the sole Designated Beneficiary under the Contract (taking
any Separate Shares into account) as of the Applicable Designation Date, then - |
| (i) | If no irrevocable written election to the contrary has been filed with the
Company by the deceased Owner or the Surviving Spouse prior to the Spouse’s
Continuation Election Date, the Contract shall continue in the name of the deceased
Owner, and RMDs must begin by the Spouse’s Required Beginning Date and be made in
accordance with Section B.8 above. For these purposes, the Applicable Distribution
Period for each Distribution Year after the Owner’s Year of Death - |
| (1) | Is measured by the Surviving Spouse’s remaining Life Expectancy,
recalculated annually through the Spouse’s Year of Death, and |
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| (2) | For a Distribution Year after the Spouse’s Year of Death, is measured
by the Surviving Spouse’s remaining Life Expectancy as of the Surviving Spouse’s
birthday in the Spouse’s Year of Death, reduced by one year for each calendar year
that has elapsed since the calendar year next following the Spouse’s Year of Death. |
However, if the Owner dies on or after the Required Beginning Date, such Applicable
Distribution Period shall not be shorter than the Applicable Distribution Period
measured by using the Owner’s remaining Life Expectancy in accordance with paragraph
9(b) above and Reg. § 1.401(a)(9)-5, Q&A-5(a)(1). If the Surviving Spouse dies before
the Spouse’s Required Beginning Date for such a continued Contract, then the Surviving
Spouse shall be treated as the deceased Owner for purposes of this Section B.9 (except
that any surviving spouse of such a deceased Surviving Spouse cannot continue the
Contract further under this subparagraph (i) as a Surviving Spouse). Any Surviving
Spouse may arrange to have any portion (or all) of any RMD that is distributable with
respect to such Surviving Spouse’s interest in the Contract distributed from another
Non-Xxxx XXX formerly owned by the deceased Owner for which such Surviving Spouse is
also a designated beneficiary (rather than from the Contract), in accordance with Reg. §
1.408-8, Q&A-9. |
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| (ii) | The Surviving Spouse may elect at any time to treat the entire remaining
interest in the Contract as an IRA of such Surviving Spouse, if such Surviving Spouse
has an unlimited right to withdraw amounts from the Contract and is the sole
beneficiary of the Contract, within the meaning of Reg. § 1.408-8, Q&A-5(a). Such an
eligible Surviving Spouse shall make such an election by a written request to the
Company to redesignate such Surviving Spouse as the Owner and Annuitant of the
Contract. Such an eligible Surviving Spouse shall be deemed to have made such an
election if either - |
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| (1) | Such Surviving Spouse makes any transfer, rollover or other
Contribution of any amount for the benefit of such Surviving Spouse into the
Contract, or |
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| (2) | Such Surviving Spouse directs the Company in writing to transfer or
rollover any part or all of the assets to which such Surviving Spouse is entitled
under the Contract to another IRA owned by such Surviving Spouse or to another Plan
for the benefit of such Surviving Spouse, or |
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| (3) | Any RMD that is required to be distributed from the Contract under this
Section B.9 or under Code Section 401(a)(9) (e.g., in the case of any amount rolled
over or transferred into the Contract from a Plan) is not distributed within the
appropriate time. |
| (iii) | The Surviving Spouse may make an irrevocable election in writing with the
Company by the Spouse’s Continuation Election Date to have such Surviving Spouse’s
entire interest under the Contract distributed under another method available under the
Contract (or offered by the Company) that qualifies under Code Section 401(a)(9), e.g.,
under Reg. § 1.401(a)(9)-6, Q&A-1(a), or § 1.401(a)(9)-8, Q&A-2. In addition to any
optional method that qualifies under the 5-year rule in paragraph 9(a) above, such
optional methods include the following: |
| (1) | Any annuity option that satisfies Reg. § 1.401(a)(9)-5, Q&A-1(e), and
provides for periodic distributions that begin no later than the Spouse’s Required
Beginning Date, or |
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| (2) | Any other method that provides for periodic distributions that begin no
later than the Spouse’s Required Beginning Date and do not extend beyond the
Applicable Distribution Period determined in accordance with subparagraph 9(c)(i)
above. |
| (d) | If as of the Applicable Designation Date the Contract (taking any Separate Shares into
account) has at least one Designated Beneficiary and no entity (e.g., a trust or estate) is
treated under Reg. § 1.401(a)(9)-4, Q&A-3 and Q&A-5, as a beneficiary under the Contract,
then - |
| (i) | To the extent that no irrevocable election to the contrary has been filed with
the Company by the deceased Owner or any such Designated Beneficiary by the DB Election
Date (and no Surviving Spouse is the sole Designated Beneficiary), then annual
distributions of the remaining interest in the Contract must be made over the
Applicable Distribution Period starting with the DB Required Beginning Date. In that
case, the RMD amount that must be distributed each Distribution Year with respect to
the Contract shall be equal to the quotient obtained by dividing the account balance
for the Contract (as determined in accordance with subparagraph 8(b)(i) above) by the
Applicable Distribution Period. For these purposes – |
| (1) | The Applicable Distribution Period for the Distribution Year next
following the Owner’s Year of Death is determined by the Measuring Designated
Beneficiary’s remaining Life Expectancy, using such beneficiary’s age as of such
beneficiary’s birthday in such Distribution Year; and |
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| (2) | For a subsequent Distribution Year the Applicable Distribution Period
is reduced by one year for each calendar year that has elapsed since the calendar
year next following the Owner’s Year of Death. |
However, if the Owner dies on or after the Required Beginning Date, such Applicable
Distribution Period shall not be shorter than the Applicable Distribution Period
measured by using the Owner’s remaining Life Expectancy in accordance with paragraph
9(b) above and Reg. § 1.401(a)(9)-5, Q&A-5(a)(1). Such RMD must be distributed no later
than the DB Required Beginning Date, and for each subsequent Distribution Year by
December 31 thereof. However, any Designated Beneficiary may arrange to have any
portion (or all) of such RMD (that is distributable with respect to such beneficiary’s
interest in the Contract) distributed from another Non-Xxxx XXX formerly owned by such
deceased Owner for which such beneficiary is also a designated beneficiary (rather than
from the Contract) in accordance with Reg. § 1.408-8, Q&A-9. |
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| (ii) | Any such Designated Beneficiary may make an irrevocable election in writing
with the Company by the DB Election Date to have such Designated Beneficiary’s entire
interest |
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under the Contract distributed under another method available under the
Contract (or offered by the Company) that qualifies under Code Section 401(a)(9), e.g.,
under Reg. § 1.401(a)(9)-6, Q&A-1(a), or § 1.401(a)(9)-8, Q&A-2. In addition to any
optional method that qualifies under the 5-year rule in paragraph 9(a) above, such
optional methods include the following: |
| (1) | Any annuity option that satisfies Reg. § 1.401(a)(9)-5, Q&A-1(e), and
provides for periodic distributions that begin no later than the DB Required
Beginning Date, or |
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| (2) | Any other method that provides for periodic distributions that begin no
later than the DB Required Beginning Date and do not extend beyond the Applicable
Distribution Period determined in accordance with subparagraph 9(d)(i) above. |
| (e) | Any amount payable to a minor child of the Owner shall be treated as if it is payable
to the Surviving Spouse to the extent that the remainder of the interest becomes payable to
such Spouse when such child reaches the age of majority, in accordance with Reg. §
1.401(a)(9)-6, Q&A-15. |
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| (f) | Unless the Owner has provided to the contrary in writing to the Company (e.g., by
selecting a certain annuity option), any beneficiary of any interest under the Contract
shall have an unlimited right after the Notice Date, upon 30 days written notice to the
Company, to withdraw any portion or all of such interest or to apply any such amount to an
annuity option that qualifies under Reg.
§ 1.401(a)(9)-5, Q&A-1(e). |
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| (g) | If the Owner dies before the entire interest under the Contract has been distributed,
no additional cash Contributions or rollover Contributions shall be allowed into the
Contract, except where the Surviving Spouse elects (or is deemed to elect) to convert the
Contract to be his or her own IRA, as specified above in this Section B.9. |
| 10. | Annual Reports - The Company shall furnish annual calendar year reports concerning the status
of the Contract and such information concerning RMDs as is prescribed by the IRS. If
Contributions made on the Owner’s behalf under the SIMPLE IRA Plan maintained by the Owner’s
employer are received by the Company directly from such employer, the Company will provide
such employer with the summary description required by Code Section 408(l)(2)(B). |
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| C. | Tax Qualification Provisions |
|
The Contract as amended by this Rider is intended to qualify as part of a tax-qualified
individual retirement arrangement, plan or contract under Code Section 408(p), and to satisfy
the applicable requirements of Code Section 408(p) and any Regulations relating thereto. To
achieve these purposes, the provisions of this Rider and the Contract (including any other rider
or endorsement that does not specifically override these tax qualification provisions) are to be
interpreted to ensure or maintain such a tax qualification, despite any other provision to the
contrary. Any benefits, payments or distributions under the Contract shall be conformed or
restricted to, or made in, any amount, time and manner needed to maintain such a tax
qualification under the applicable provisions of the Code and Regulations, and the Contract
shall be subject to separate accounting (e.g., for undistributed excess contributions or RMDs,
with earnings thereon), subdivision or severance (e.g., into an annuity contract that is subject
to Code Section 72(s) provisions) to maintain such a tax qualification (including the favorable
tax treatment of the Contract or any distribution thereunder), to the maximum extent possible.
The Company reserves the right to amend this Rider or the Contract from time to time to reflect
any clarifications that may be needed or are appropriate to maintain such a tax qualification or
to conform the Contract to any applicable changes in the tax qualification requirements, as
provided in the Code or any Regulations or other published IRS guidance relating thereto,
without consent (where allowed by law). The Company will send you a copy of any such amendment. |
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All other terms and conditions of your Contract remain unchanged.
PACIFIC LIFE & ANNUITY COMPANY
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| [ Chairman and Chief Executive Officer | Secretary ] |
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