Exhibit 4(h)


 


PROTECTIVE LIFE INSURANCE COMPANY P. O. BOX
10648 BIRMINGHAM, ALABAMA 35202-0648


 


INDIVIDUAL RETIREMENT ANNUITY (IRA) ENDORSEMENT

FOR DEFERRED ANNUITY CONTRACTS


 


The
Contract to which this Individual Retirement Annuity Endorsement is attached is
issued as an individual retirement annuity under Section 408(b) of
the Internal Revenue Code of 1986, as amended (the “Code”). Accordingly, where
the provisions of this Endorsement are inconsistent with the provisions of the
Contract, including the provisions of any other endorsement or rider issued
with the Contract, the provisions of this Endorsement will control.


 


The
Contract is amended as follows:


 


1.                                      OWNER AND ANNUITANT


The
Annuitant must be an individual who is the sole Owner, and all payments made
from the Contract while the Annuitant is alive must be made to the Annuitant.
Except as permitted under Section 8 of this Endorsement, and otherwise
permitted under the Code and applicable regulations, neither the Owner nor the
Annuitant can be changed.


 


2.                                      NONTRANSFERABLE AND
NONFORFEITABLE


The
Contract is established for the exclusive benefit of the Owner and his or her
beneficiaries. The Owner’s interest under the Contract is nontransferable, and
except as provided by law, is non-forfeitable. In particular, the Contract may
not be sold, assigned, discounted or pledged as collateral for a loan or as
security for the performance of any obligation or for any other purpose, to any
person other than the Company (other than a transfer incident to a divorce or
separation instrument in accordance with Code Section 408(d)(6)).


 


3.                                      UNISEX RATES


If
the Contract is issued in connection with a Simplified Employee Pension, the
method of calculating Purchase Payments and benefits under the Contract are to
be based on unisex rates, and any references to sex (with regard to rates and
benefits) in the Contract are deleted.


 


4.                                      PURCHASE PAYMENTS


Purchase
Payments may not include any amounts other than a rollover contribution (as
permitted by Code Sections 402(c), 402(e)(6), 403(a)(4), 403(b)(8), 403(b)(10),
408(d)(3) and 457(e)(16)), a nontaxable transfer from an Individual
Retirement Account under Code Section 408(a) or another Individual
Retirement Annuity under Code Section 408(b), a contribution made in
accordance with the terms of a Simplified Employee Pension as described in Code
Section 408(k), and a contribution in cash not to exceed the amount
permitted under Code Sections 219(b) and 408(b), (or such other amount
provided by applicable federal tax law). In particular, unless otherwise
provided by applicable federal tax law:


 


A.           The total cash contributions shall not exceed $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. After 2008, the limit will be adjusted by the Secretary of the
Treasury


 


	
  IPV-2068

  	
   

  	
  7/02

  



 


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for
cost-of-living increases under Code Section 219(b)(5)(C). Such adjustments
will be in multiples of $500.


 


B.             In the case of an individual who is 50 or
older, the annual cash contribution limit is increased by $500 for any taxable
year beginning in 2002 through 2005, and $1,000 for any taxable year beginning
in 2006 and years thereafter.


 


No
Purchase Payment subsequent to the initial Purchase Payments will be accepted
unless it is equal to at least $50.


 


No
contribution will be accepted under a SIMPLE IRA plan established by any
employer pursuant to Code Section 408(p). 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 Individual Retirement
Account under Code Section 408(a) or an Individual Retirement Annuity
under Code Section 408(b) 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.


 


5.                                      REQUIRED DISTRIBUTIONS
GENERALLY


Notwithstanding
any provision of the Contract to the contrary, the distribution of the Owner’s
interest in the Contract shall be made in accordance with the requirements of
Code Sections 401(a)(9) and 408(b)(3) and the regulations thereunder,
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 Contract (as determined
under Section 8.C. of this Endorsement) must satisfy the requirements of
Code Section 408(a)(6) and the regulations thereunder, rather than
Sections 7 and 8 of this Endorsement.


 


6.                                      REQUIRED BEGINNING DATE


As
used in this Endorsement, the term “Required Beginning Date” means April 1
of the calendar year following the calendar year in which the participant
attains age 701⁄2, or such later date as provided by law.


 


7.                                      DISTRIBUTIONS DURING OWNER’S
LIFE


A.           Unless otherwise permitted under applicable law, the Owner’s entire
interest in the Contract will commence to be distributed no later than the
Required Beginning Date over:


 


(i)             the life of the Owner, or the lives of the
Owner and his or her designated beneficiary (within the meaning of Code Section 401(a)(9)),
or


 


(ii)          a period certain not extending beyond the life expectancy of the Owner,
or the joint and last survivor expectancy of the Owner and his or her
designated beneficiary.


 


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Payments
must be made in periodic payments at intervals of no longer than one year.
Unless otherwise provided by applicable federal tax law, payments must be
either non-increasing or they may increase only as provided in Q&As-1 and
-4 of Section 1.401(a)(9)-6T of the Temporary Income Tax Regulations, and
any distribution must satisfy the incidental benefit requirements specified in
Q&A-2 of Section 1.401(a)(9)-6T of the Temporary Income Tax
Regulations.


 


The
distribution periods described in this subsection A cannot exceed the periods
specified in Section 1.401(a)(9)-6T of the Temporary Income Tax
Regulations (except as otherwise provided by applicable federal tax law).


 


B.             If the Owner’s interest is to be distributed
over a period greater than one year, the amount to be distributed by December 31
of each year (including the year in which the Required Beginning Date occurs)
will be made in accordance with the requirements of Code Section 401(a)(9) and
the regulations thereunder. If annuity payments commence on or before the
Required Beginning Date, the first required payment can be made as late as the
Required Beginning Date and must be the payment that is required for one
payment interval. The second payment need not be made until the end of the next
payment interval.


 


8.                                      DISTRIBUTIONS AFTER DEATH OF
THE OWNER


A.           If the Owner dies on or after required distributions commence, the
remaining portion of his or her interest in the Contract, if any, will be
distributed at least as rapidly as under the annuity option chosen.


 


B.             If the Owner dies before required
distributions commence, his or her entire interest in the Contract will be
distributed at least as rapidly as follows:


 


(i)             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 designated beneficiary’s life, or over the
remaining life expectancy of the designated beneficiary, with such life
expectancy determined using the age of the beneficiary as of his or her
birthday in the year following the year of the individual’s death, or, if
elected, in accordance with paragraph B(iii) below.


 


(ii)          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 by the end
of the calendar year in which the Owner would have attained age 701⁄2, if later),
over the surviving spouse’s life, or, if elected, in accordance with paragraph
B(iii) 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


 


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following the death of the spouse, or, if
elected, will be distributed in accordance with paragraph B(iii) below. If
the surviving spouse dies after required distributions commence to him or her,
any remaining interest will be distributed at least as rapidly as under the
annuity option chosen.


 


(iii)       If there is no designated beneficiary, or if applicable by operation of
paragraph B(i) or B(ii) above, the entire interest will be distributed by the end of the calendar year containing the fifth anniversary of the
individual’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(ii) above).


 


(iv)      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 beneficiary’s age in the year specified in paragraph B(i) or
(ii) and reduced by 1 for each subsequent year.


 


C.             The “interest” in the Contract 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. Also,
prior to the date that annuity payments commence on an irrevocable basis (except for acceleration) the “interest” in the Contract includes
the actuarial value of any other benefits provided under the Contract, such as
guaranteed death benefits.


 


D.            For purposes of subsections A and B above,
required distributions are considered to commence on the Required Beginning
Date or, if applicable, on the date distributions are required to begin to the
surviving spouse under paragraph B(ii) above. However, if distributions start prior to the applicable date in the preceding sentence on an
irrevocable basis (except for acceleration) in accordance with the requirements
of Section 1.401(a)(9)-6T of the Temporary Income Tax Regulations, then
required distributions are considered to commence on the annuity starting date.


 


E.              If the sole designated beneficiary is the
Owners surviving spouse, the surviving spouse may elect to treat the Contract
as his or her own IRA. This election will be deemed to have been made if such
surviving spouse makes a contribution to the Contract or fails to take required
distributions as a beneficiary.


 


9.                                      ANNUITY
OPTIONS


All annuity options under the Contract must
meet the requirements of Code Sections 401(a)(9) and 408(b)(3). The
provisions of this Endorsement reflecting the requirements of these Code
Sections override any annuity option that is inconsistent with such
requirements.


 


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If
guaranteed payments are to be made under the Contract, the period over which
the guaranteed payments are to be made must not exceed the period permitted
under Section 1.401(a)(9)-6T of the Temporary Income Tax Regulations
(except as otherwise provided by applicable federal tax law).


 


10.                               ANNUAL
REPORTS


The
Company will furnish annual calendar year reports concerning the status of this
Contract and such information concerning required minimum distributions as is
prescribed by the Commissioner of the Internal Revenue Service.


 


11.                               CODE
SECTION 72(s)


All
references in the Contract to Code Section 72(s) are deleted.


 


12.                               AMENDMENT
OF THIS ENDORSEMENT


The
Company reserves the right, and the Owner agrees the Company shall have such
right, to make any amendments to this Endorsement from time to time as may be
necessary to comply with the Code, as amended, and the regulations thereunder.
We will obtain all necessary approvals including, where required, that of the
Owner and will send you a copy of the endorsement that modifies your Contract.
We will not be responsible for any adverse tax consequences resulting from the
rejection of such an amendment.


 


13.                               GROUP
CONTRACT


If
this Endorsement is used with a certificate issued under a group contract, the
term “Owner” refers to the Participant/Annuitant and the term “Contract” refers
to your Certificate.


 


Signed
for the Company as of the Effective Date.


 


Protective
Life Insurance Company


 


 


	
  /s/
  Deborah J. Long

  	
   

  
	
  Deborah J. Long

  	
   

  
	
  Secretary

  	
   

  
	
   

  	
   

  



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