Ex. 4(b)
ALEXANDER HAMILTON LIFE
INSURANCE COMPANY OF AMERICA
[32291 Hamilton Court, Farmington Hills, Michigan 48334]
Individual Retirement Annuity Endorsement
This Endorsement is a part of the Contract to which it is attached by the
Company and overrides any conflicting provision in such Contract. The effective
data of this Individual Retirement Annuity Endorsement shall be the effective
date of the annuity policy to which it is attached.
At the request of the Owner, so that this Contract qualifies as an Individual
Retirement Annuity under Section 408(b) of the Internal Revenue Code of 1986, as
amended, (herein called the Code) and any regulation or ruling pursuant thereto,
the Owner agrees that the following modifications and limitations shall be in
effect as the annuity:
1. The Annuitant will at all times be the Owner of this Contract. The
Annuitant's rights under this Contract shall be nonforfeitable and for the
exclusive benefit of the Annuitant and his or her beneficiaries.
2. The Individual Retirement Annuity is not transferable by the Annuitant. No
benefits under this Contract may be sold, assigned, or pledged as
collateral for a loan, or as security for the performance of an
obligation, or for any other purposed, to any person; except that this
Contract may be transferred to a former spouse of the Annuitant under a
Qualified Domestic Relations Order. In the event of such transfer, the
transferee shall for all purposes be treated as the Annuitant under this
Contract. (In the event that a distribution is made to the Annuitant from
this Contract prior to his attainment of age 59 1/2, such distribution may
be subject to certain federal income tax penalties.)
3. Except in the case of a rollover contribution (as permitted by section
402(c), 403(a)(4), 403(b)(8), or 408(d)(3)) or a contribution made in
accordance with the terms of a Simplified Employee Pension (SEP) as
described in section 408(k), no contributions will be accepted unless they
are in cash, and the total of such contributions shall not exceed $2,000
for any taxable year.
4. The 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.
5. The Annuitant may contribute a Qualified Rollover to this Contract as
described in Sections 402(c), 403(a)(4), 403(b)(8) or 408(d)(3) of the
Code. Rollover Contributions may be made for individuals over the age of
70-1/2, provided any required minimum distributions are made. All Rollover
Contributions must be executed not later than sixty (60) days after the
day in which distribution is received by the Annuitant.
6. The entire interest under this Contract will begin to be distributed to
the Annuitant no later than the first day of April following the calendar
year in which the Annuitant attains age 70-1/2 (required beginning date).
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Payments will be distributed in equal or substantially equal amounts and
in annual or more frequent installments over:
a. The Annuitant's life or the lives of the Annuitant and his named
Beneficiary; or
b. A period certain not exceeding the Annuitant's life expectancy or
the joint and last survivor life expectancy of the annuitant and his
named Beneficiary.
In addition, distributions in the form of annuity payments must be either
nonincreasing or they may increase only as provided in Q&A F-3 if section
1.401(a)(9)-1 of the proposed income tax regulations.
Any method of settlement described in the Settlement Option section that
satisfies these conditions can be selected. Distributions subsequent to
the initial distribution must be made prior to December 31 of the calendar
year.
Life expectancy is computed by use of the expected return multiples in
Tables V and VI of section 1.72-9 of the Income Tax Regulations. Unless
otherwise elected by the Annuitant by the time distributions are required
to begin, life expectancies shall be recalculated annually. Such election
shall be irrevocable by the Annuitant and shall apply to all subsequent
years. The life expectancy of a non-spouse Beneficiary may not be
recalculated. Instead, life expectancy will be calculated using the
attained age of such Beneficiary during the calendar year in which the
Annuitant attains age 70-1/2, and payments for subsequent years shall be
calculated based on such life expectancy reduced by one for each calendar
year which has elapsed since the calendar year life expectancy was first
calculated.
All distributions made hereunder shall be made in accordance with the
requirements of section 401(a)(9) of the Code, including the incidental
death benefit requirements thereunder, and the Regulations thereunder,
including the minimum distribution incidental benefit requirement of
section 1.401(a)(9)-2 of the Proposed Income Tax Regulations.
If the amount distributed is less than required by Internal Revenue Code
Sections 408(a)(6) and 408(b)(3), an excise tax is imposed. The excise tax
will be an amount equal to 50% of the excess of the minimum amount
required to be distributed during the year, over the amount actually
distributed.
7. The Death Benefit in all cases will be paid according to section 401(a)(9)
of the Code and the terms of this provision, provided due proof of the
Annuitant's death is received at our Home Office. If the Annuitant dies
after distribution of his interest under this Contract has begun, the
remaining portion of such interest under this Contract will continue to be
distributed at least as rapidly as under the method of distribution being
used prior to the Annuitant's death.
If the Annuitant dies before distribution of his interest under this
Contract begins, distribution of the Annuitant's entire interest under
this Contract shall be completed by December 31 of the calendar year
containing the fifth anniversary of the Annuitant's death except to the
extent that an election is made to receive distributions in accordance
with (a) or (b) below:
a) If a primary Beneficiary is named by the Annuitant, then the
interest under this Contract will begin to be paid in substantially
equal installments over the life or over a period certain not
greater than the life expectancy of the primary Beneficiary
commencing on or before December 31 of the calendar year immediately
following the calendar year in which the Annuitant died.
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b) If the primary Beneficiary is the Annuitant's surviving spouse, the
date distributions are required to begin in accordance with (1)
above shall not be earlier than the later of A) December 31 of the
calendar year immediately following the calendar year in which the
Annuitant died or B) December 31 of the calendar year in which the
Annuitant would have attained age 70-1/2. The surviving spouse may
accelerate these payments at any time, such as increasing the
frequency or amount of such payments.
c) If the primary Beneficiary is the Annuitant's surviving spouse, the
spouse may treat this Contract (account) as his own (IRA). This
election will be deemed to have been made if such surviving spouse
makes a regular IRA contribution to this Contract (account), makes a
rollover to or from such Contract (account), or fails to elect any
of the above provisions.
Life expectancy is computed by use of the expected return multiples in
Tables V and VI of section 1.72-9 of the Income Tax Regulations. For
purposes of distributions beginning after the Annuitant's death, unless
otherwise elected by the surviving spouse by the time distributions are
required to begin, life expectancies shall be recalculated annually. Such
election shall be irrevocable by the surviving spouse and shall apply to
all subsequent years. In the case of any other designated Beneficiary,
life expectancies shall be calculated using the attained age of such
Beneficiary during the calendar year in which distributions are required
to begin pursuant to this section, and payments for any subsequent
calendar year shall be calculated based on such life expectancy reduced by
one for each calendar year which has elapsed since the calendar year life
expectancy was first calculated.
Distributions under this selection are considered to have begun if
distributions are made on account of the Annuitant reaching his required
beginning date or if prior to the required beginning date distributions
irrevocably begin to a Annuitant over a period permitted and in an annuity
form acceptable under section 401(a)(9) of the Code and the regulations
thereunder. If the Annuitant receives distributions in the form of
installment payments prior to the required beginning date and the
Annuitant dies, distributions will not be considered to have begun.
8. By application, the Annuitant agrees that the favorable tax status of this
Contract will be lost if he engages in a Prohibited Transaction as defined
under Section 408(e) of the Internal Revenue Code of 1986, as amended, and
the regulations thereunder. Such transaction will immediately disqualify
the annuity and subject all of the annuity assets to current taxation.
9. The Annuitant may terminate this agreement by surrendering this Contract.
10. The Annuitant further agrees that he will surrender this Contract upon
request so that it may be appropriately endorsed or written to conform
with the above conditions or any amendments to Section 408(b) of the
Internal Revenue Code of 1986, as amended. The Company reserves the right
to amend this Endorsement to comply with future changes in The Code and
any regulations or rulings issued under the provisions of the Code. The
Company shall provide the annuitant with a copy of any such amendment.
11. The Annuitant shall be given an IRA Disclosure Statement at least ten (10)
days prior to establishment of his participation. If such disclosure is
not given until ten (10) days after establishment to revoke his
participation.
12. The Annuitant agrees that he shall have the sole responsibility to
exercise his rights under this Annuity, and to determine that
contributions, transfers, and distributions under this Annuity are in
accordance with section 408(b) of the code and other applicable law.
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13. Alexander Hamilton Life Insurance Company of America shall furnish annual
calendar year reports concerning the status of this Individual Retirement
Annuity.
IT WITNESS WHEREOF, Alexander Hamilton Life Insurance Company of America has
caused this Individual Retirement Annuity Endorsement to be executed as of the
effective Date of the Annuity to which it is attached and of which it becomes a
part.
/s/ David A. Stonecipher /s/ Robert A. Reed
David A. Stonecipher Robert A. Reed
Chief Executive Officer Secretary
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