iu-ra3125iraendorsementfinal.htm - Generated by SEC Publisher for SEC Filing










	
ING USA Annuity and Life Insurance Company

[P.O. Box 617, 909 Locust Street, Des Moines, Iowa 50303-0617]





	
Individual Retirement Annuity Endorsement





	
The Contract to which this Individual Retirement Annuity Endorsement (this “Endorsement”) is attached is hereby

modified by the provisions of this Endorsement. The Endorsement provisions shall control if there is a conflict

between the Endorsement and the Contract, including any other endorsements or riders issued with the Contract.

Any capitalized terms not defined in this Endorsement shall have the meaning given to them in the Contract. This

Endorsement is effective as of the Contract Date.



This Endorsement amends the Contract in order to meet the qualification requirements for an Individual

Retirement Annuity (“IRA”) under Section 408(b) of the Code, and shall be interpreted in accordance with that

section.



YOU MAY RETURN YOUR IRA AT THE ADDRESS SHOWN ABOVE WITHIN 7 DAYS (OR LONGER IF

REQUIRED BY LAW OR BY THE PROVISIONS OF YOUR IRA) AFTER THE DATE YOU RECEIVE IT. IF SO

RETURNED, WE WILL PROMPTLY RETURN YOUR ENTIRE PREMIUM PAID LESS ANY WITHDRAWALS

OR SURRENDERS. IF YOU RETURN YOUR IRA AFTER 7 DAYS, THE RETURN OF FUNDS WILL BE IN

ACCORDANCE WITH THE "RIGHT TO EXAMINE AND RETURN THIS CONTRACT" PROVISION OF THE

CONTRACT TO WHICH THIS IRA ENDORSEMENT IS ATTACHED.



If you send correspondence indicating your intent to return your IRA, your letter must be postmarked during the 7-

day period (or longer if required by law or by the provisions of your IRA) following the date you received your IRA.

You must also enclose your Contract.





	
1. IMPORTANT TERMS AND DEFINITIONS





	
Compensation means 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 Section 401(c)(2) of the Code (reduced by the deduction you take for Contributions

made to a self-employed retirement plan if you are self-employed). For the purposes of this definition, Section

401(c)(2) of the Code shall be applied as if the terms “trade” or “business” for purposes of Section 1402 of the

Code includes 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. Compensation shall include any amount includible in your gross income under

Section 71 of the Code with respect to a divorce or separation instrument described in subparagraph (A) of

Section 71(b)(2) of the Code. The term “compensation” includes any differential wage payment, as defined in

Section 3401(h)(2) of the Code. For purposes of this definition, the amount of compensation includible in your

gross income shall be determined without regard to Section 112 of the Code.



Contribution means Premium, as used in the Contract. Contributions may be limited under the

“CONTRIBUTIONS” section below.



Designated Beneficiary means a natural person who is a “designated beneficiary” within the meaning of Section

401(a)(9) of the Code and the Treasury Regulations thereunder.



Interest means the Accumulation Value plus the amount of any outstanding rollover, transfer and

recharacterization under Q&As-7 and -8 of Section 1.408-8 of the Treasury Regulations and, prior to the date that

the Contract is annuitized, the actuarial value of any other benefits provided under the Contract, such as certain

guaranteed living and death benefits.

Treasury Regulations mean the regulations set forth in Title 26 of the Code of Federal Regulations.





	
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2. NON-FORFEITABLE AND NON-TRANSFERABLE



The Contract is established for the exclusive benefit of you or your beneficiaries. Joint Owners are not permitted.

You are also the Annuitant.



Your Interest in the Contract is nontransferable and, except as provided by law, is nonforfeitable. It may not be

sold, assigned, discounted or pledged as collateral for a loan or as security for the performance of an obligation or

for any other purpose.





	
3. CONTRIBUTIONS




	
3.1      		
Maximum Regular Contribution Limits	
	 	
The      		
Contract to which this Endorsement is attached may permit the Contribution of: (1) an Initial Premium and	
	 	
Additional      		
Premiums, (2) an Initial Premium and, on a limited basis, Additional Premiums, or (3) only a Single	
	 	
Premium.      		
In addition, the Contract may require the payment of a minimum Premium amount. Additional	
	 	
Premiums,      		
if permitted under the Contract, will be subject to a minimum amount that is not greater than $50.	
	 	
(1)      		
A Contribution permitted under the Contract may include 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 non-taxable transfer from an individual retirement plan under Code Section 7701(a)(37), and cash not exceeding $5,500 for any taxable year. In addition, if the Contract permits the Contribution of an Initial Premium and Additional Premiums, a permitted Contribution may include a Contribution made in accordance with the terms of a Simplified Employee Pension (SEP) as described in Code Section 408(k). After 2013, this annual cash contribution limit will be adjusted by the Secretary of the Treasury for cost-of-living increases under Code Section 219(b)(5)(D). Such adjustments will be in multiples of $500.	
	 	
(2)      		
In the case of an individual who is 50 or older, the annual cash contribution limit is increased by $1,000 for any taxable year beginning in 2013 and years thereafter.	
	 	
(3)      		
In addition to the amounts described in paragraphs (1) and (2) above, a Contribution permitted under the Contract may include an individual’s repayment of 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.	
	
3.2      		
SIMPLE IRA Contribution Limitation	
	 	
No      		
Contributions will be accepted under a SIMPLE IRA plan established by any employer pursuant to Section	
	 	
408(p)      		
of the Code. 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 you first	
	 	
participated      		
in that employer’s SIMPLE IRA plan.	



	
4. REQUIRED MINIMUM DISTRIBUTIONS




	
4.1      		
In General	
	 	
Notwithstanding any provision of this IRA to the contrary, the distribution of your Interest in this IRA shall be made in accordance with the requirements of Code Section 408(b)(3) and the Treasury 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 this IRA must satisfy the requirements of Section 408(a)(6) of the Code and the regulations thereunder, rather than the provisions of subsections 4.2 and 4.3.	
	
4.2      		
Required Minimum Distributions	
	 	
Your entire Interest in the IRA will be distributed no later than April 1 following the calendar year in which you attain 701⁄2 (the "required beginning date") over your life or the lives of you and your Designated Beneficiary, or a period certain not extending beyond your life expectancy or the joint and last survivor expectancy of you and your Designated Beneficiary. Payments must be made in periodic payments at intervals of no longer than 1 year and must be either nonincreasing or they may increase only as provided in Treasury Regulations Section 1.401(a)(9)-6, Q&A 1 and 4 of the Income Tax Regulations. In addition, any distribution must satisfy the incidental benefit requirements specified in Section 1.401(a)(9)-6, Q&A 2 of the Treasury Regulations.	



	
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The      		
distribution periods described in the paragraph above cannot exceed the periods specified in Treasury	
	 	
Regulation      		
Section 1.401(a)(9)-6.	
	 	
The      		
first required payment can be made as late as April 1 of the year following the year in which you attain	
	 	
701⁄2      		
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. If all or a portion of an individual account is used to purchase	
	 	
an      		
annuity after distributions are required to commence (the required beginning date, in the case of	
	 	
distributions      		
commencing before death, or the date determined under Treasury Regulation Section	
	 	
1.401(a)(9)-3,      		
Q&A-3 of the Income Tax Regulations, in the case of distributions commencing after death),	
	 	
payments      		
under the annuity, and distributions of any remaining account, must be made in accordance of	
	 	
Q&A-3Section      		
1.401(a)(9)-5, Q&A-5.	
	
4.3      		
Distributions Upon Death	
	 	
Death      		
On or After Required Distributions Commence. If you die on or after the date required distributions	
	 	
commence,      		
the remaining portion of your Interest will continue to be distributed under the Contract option	
	 	
chosen.      		
	
	 	
Death      		
Before Required Distributions Commence. If you die before required distributions commence, your	
	 	
entire      		
Interest will be distributed at least as rapidly as follows:	
	 	
(1)      		
If the Designated Beneficiary is someone other than your surviving spouse, the remaining portion of the entire Interest will be distributed, starting by the end of the calendar year following the calendar year of your death, over the Designated Beneficiary’s life, or over a period not extending beyond 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 your death, or if elected, in accordance with paragraph (3) below.	
	 	
(2)      		
If the sole Designated Beneficiary is your surviving spouse, the entire Interest must be distributed, starting by the end of the calendar year following the calendar year of your death (or by the end of the calendar year in which you would have attained age 701⁄2, if later), over such spouse’s life, or over a period not extending beyond the remaining life expectancy of the surviving spouse, or, if elected, in accordance with paragraph (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 life, or over a period not extending beyond the remaining life expectancy determined using such Designated 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 (3) below.	
	 	 	
If the surviving spouse dies after the 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 (1) or (2) above, the entire Interest will be distributed by the end of the calendar year containing the 5th anniversary of your death (or of the spouse’s death in the case of the surviving spouse’s death before distributions are required to begin under paragraph (2) above).	
	 	
(4)      		
Life expectancy is determined using the Single Life Table in Treasury Regulation Section 1.401(a)(9)-9, Q&A-1 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 (1) or (2) above and reduced by 1 for each subsequent year. If distributions	
	 	
are      		
made in the form of an annuity, life expectancy is not recalculated.	
	 	
(5)      		
For purposes of this Section 4.3, required distributions are considered to commence on your required	
	 	
beginning      		
date or, if applicable, on the date distributions are required to begin to the surviving spouse	
	 	
under      		
paragraph (2) above. 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 Treasury Regulation Section 1.401(a)(9)-6, then required distributions are considered to	
	 	
commence      		
on the annuity starting date.	



	
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(6)      		
If you die prior to the date annuity payments commence under the Contract and the sole Designated Beneficiary is your surviving spouse, the 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 the Designated Beneficiary. This election may only be made once, and thus may not be made a second time if the surviving spouse Designated Beneficiary elects to treat the IRA as his or her own, remarries, and his or her new spouse is the sole Designated Beneficiary.	



	
5. GENERAL PROVISIONS




	
5.1      		
Multiple IRAs	
	 	
If you own more than one IRA, the required minimum distribution must be calculated separately for each IRA. The separately calculated amounts may be totaled and the total distribution taken from any one or more of your IRAs under the rules set forth in Treasury Regulation Section 1.408-8,Q&A-9. Amounts in IRAs that you hold as a beneficiary of the same decedent and which are being distributed under Code Section 401(a)(9)(B)(iii) or (iv) may be aggregated, but such amounts may not be aggregated with amounts held in IRAs that you hold as the IRA owner or as the beneficiary of another decedent.	
	
5.2      		
Annual Report	
	 	
We will furnish annual calendar year reports concerning the status of the Contract and such information concerning required minimum distributions as is prescribed by the Commissioner of the Internal Revenue Service.	
	
5.3      		
Amendments	
	 	
We reserve the right to amend or administer this Endorsement, subject to regulatory approval, as necessary to comply with the Code, the Treasury Regulations or published Internal Revenue Service Rulings. We will send a copy of any such amendment to you. 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.	



	
All other provisions of the Contract remain unchanged.








	
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